Jupitermedia Revs Rise In Q4

Posted on 3/18/2008 by Jim Pickerell | Printable Version | Comments (0)

Jupitermedia's Q4 2007 revenues were $36.1 million, up from $34.78 million in the same period in 2006 and from $34.77 million in Q3 2007. Growth was in the online media division, due primarily to the acquisition of Media Bistro. Revenue for online images, which represents 74% of the company's business, continued a steady slide since its peak in Q1 2007; it was down 4% to $26.783 million. In Q4 2006, the comparative revenue was $27.087 million.

Total revenue for 2007 was $140.33 million up 2% from $137.53 million in the previous year. Revenue for the online images division was up 2% to $108.904 million compared to $106.636 million in 2006.

Alan M. Meckler, Chairman/CEO of Jupitermedia, said, "Our Rights Managed category experienced over 30% revenue growth from 2006 to 2007. In addition, revenues from our JupiterimagesUnlimited high level royalty-free subscription offering grew over 275% from 2006 to 2007. Our backlog for JupiterimagesUnlimited increased sharply during 2007, which bodes well for future revenues."

3 Categories of Revenue

Jupiterimages revenue is divided into three categories: Single Images and CDs, Subscriptions and Distributors and Other. The single image revenue was $12.7 million, down from $14.01 a Q4 2006 and from $13.197 in Q3 2007. Revenue in this category has declined 11% since its peak of $14.3 million in Q1 2007. The category includes the single images sales of Stockxpert, as well as the traditional RM and RF sales.

RM represented about $2.2 million or 17% of single image revenue for the quarter. Stockxpert also provided significant revenue growth for the category. Thus, the revenue generated by traditional RF sales seems to be declining at a rapid pace.

Meckler said, "We're not making any secret about it. We bit the bullet 15 months ago and said if you're going to depend on growth of high end RF single images, you're going to be in the crapper pretty soon. That's what birthed Jupiterimages Unlimited. In the fourth quarter, with some help from the growth of RM and microstock, Jupiterimages Unlimited has finally brought us back to even. Traditional RF will be here for a long time, but if you're going to build your business around single image RF sales, you might as well pack it in because you're not going to be around in 10 years."

Gross revenue in the subscription category has been growing steadily with $6.8 million in Q1 2007 to $7.049 in Q2, $7.146 in Q3 and $7.6 million in Q4. The subscription segment of Stockxpert falls into this category, but its contribution was fairly nominal in Q4, since the subscription offering was launched in November. The biggest subscription success story is JupiterimagesUnlimited.

Revenue from distributors was $6.583 million and grew from $6.24 million in the same quarter a year ago and from $6.481 in Q3 2007.

In Q1 2008, Jupitermedia expects revenues of $35 to $36 million and diluted earnings per share of approximately $.02. The current market capitalization for the company is just under $100 million and 36,029,651 shares were outstanding on December 31, 2007.

Jupitermedia also disclosed that a charge for impairment was required under relevant accounting principles with respect to Jupitermedia's valuation of goodwill and intangible assets associated with Jupitermedia's online images reporting segment in Q4 2007. Based on its review to date, Jupitermedia's management currently anticipates that the restatement will result in a decrease to net income of approximately $1.5 million in 2006 and an increase to net income of approximately $300,000 in the first quarter of 2007. It will also impact certain balance sheets adjustments to deferred income taxes, income taxes payable and goodwill.

For more historic details see the chart below.

Q1 2006

Q2 2006

Q3 2006

Q4 2006

Year Tot.

Single Images

13.209

14.165

13.566

14.01

54.95

Subscriptions

6.32

6.166

6.376

6.837

25.699

Distributors, Other

7.278

6.234

6.235

6.24

25.987

Image Division

26.807

26.565

26.177

27.087

106.636

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Year Tot.

Single Images

14.3

13.936

13.197

12.7

54.133

Subscriptions

6.814

7.049

7.146

7.5

28.509

Distributors, Other

6.8

6.398

6.481

6.583

26.262

Image Division

27.914

27.383

26.824

26.783

108.904

Gross Revenue

Q1

Q2

Q3

Q4

Year Tot.

2006

$33.90

$35.03

$33.78

$34.78

$137.49

2007

$34.80

$34.70

$34.77

$36.10

$140.37


Copyright © 2008 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-251-0720, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

Comments

Be the first to comment below.

Post Comment

You must log in to post comments.

Stay Connected

Sign up to receive our FREE weekly email listing new stories posted.

Follow Us

Free Stuff

Recent Stories – Summer 2016
If you’ve been shooting all summer and haven’t had time to keep up with your reading here are links to a few stories you might want to check out as we move into the fall. To begin, be sure to complet...
Read More
Corbis Acquisition by VCG/Getty Images
This story provides links to several stories that relate to the Visual China Group (VCG) acquisition of Corbis and the role Getty Images has been assigned in the transfer of Corbis assets to the Gett...
Read More
Finding The Right Image
Many think search will be solved with better Metadata. While metadata is important, there are limits to how far it can take the customer toward finding the right piece of content. This story provides...
Read More
Where Is The Stock Photo Industry Headed?
For new readers, or those who may have missed some of what I have written over the last few months, the following are a list of stories worth looking at to get a sense of where the industry is headed.
Read More
Photography As A Career
It’s that time of year when high school seniors are waiting for college acceptance letters and thinking about future careers. If you know someone who is thinking about photography as a career you mig...
Read More
2014 Stories You May Have Missed
For many the end of the year is a time to review past experiences and consider whether it makes sense to chart a new course in the year ahead. Stock photography has changed dramatically for professio...
Read More
More Stories In 2014 You May Have Missed
Every so often I put together a list of the most important stories we’ve published in the recent past. If you are engaged in the business of stock photography the links below are to stories that we’v...
Read More
Getty: A Three Month Review
In all the excitement about 35 million FREE images it is worth looking back at some of things that have been happening at Getty Images in the last three months. After watching revenue decline for the...
Read More
State Of Stock Photo Industry: 2013
If you’re looking for an overview of the state of the stock photo industry as of October 2013 the stories listed below are a good place to start. Regular readers of Selling-Stock will have seen all t...
Read More
Education Market Shifts To Digital
If supplying pictures for educational use is a significant part of your business plan you need to be aware of how the market is trending toward digital delivery and how that is likely to affect the p...
Read More

More from Free Stuff