654 JUPITERMEDIA Q2 RESULTS
Auguts 10, 2004
Jupitermedia Corporation has reported revenues for the second quarter of 2004 of $17.8 million compared to revenues of $10.2 million for the same period in 2003. Net income for the second quarter was $3.5 million, or $0.11 per diluted share, compared to a net loss of $111,000, or $0.00 per diluted share, for the same period last year.
The company is on track to generate about $70 million in revenue in 2004 and in excess of $20 million of that will be from their Online Images division which includes Comstock Images, Photos.com, ClipArt.com and the recent acquisition of Thinkstock.com and Thinkstockfootage.com. The company also has plans to aggressively grow the image sales division and during the conference call CEO Alan M. Meckler indicated that within the next 3 or 4 years he expected the majority of the company's revenue to come from Online Image sales.
Revenue for Image sales alone for Q2 was $5.791 million with Comstock contributing almost $3 million of that revenue. They also pointed out that they have now owned ArtToday (Photos.com, ClipArt.com, Animations.com) for four quarters and there has been steady growth in subscription sales during this period. The quarter-by-quarter revenue was: Q3 2003 - $1.8 million; Q4 2003 - $2.2 million; Q1 2004 - $2.5 million and Q2 2004 - $2.8 million for a total of $9.3 million in the year.
The company is looking at several other possible acquisition, but their focus is on wholly owning the content they acquire. When they first purchased ArtToday much of the content was not owned, but in the last year they have moved to purchase much of what is in the database and the company and expect to own 75% to 80% of the photos on that site by the end of the year. They wholly own all the Comstock and Thinkstock material.
Jupitermedia has been "aggressive on the acquisition front" and continues to look for small, efficient operated organizations and libraries with unique wholly owned image collections. Rather than bringing these acquisitions under one umbrella and integrating them into one central collection with a single overall strategy Jupitermedia lets each company continue to operate in its current locality and maintain the unique characteristics of its brand.
The finance and accounting processes are centralized and with Jupiter's efficient use of the Internet they market the image products through their network that currently provides over 115 million page views and 4 million unique visitors per month. As an example of what their sites can do they pointed out that in the first four days that they have owned Thinkstock traffic increased on the Thinkstock site by 35%.
Meckler also indicated that in the next 40 to 70 days they will be announcing new product lines within their brands that will offer an "organic and revolutionary" way of selling Rights Managed images.