Revenue Up In Q4 At Jupitermedia

Posted on 3/15/2007 by Jim Pickerell | Printable Version | Comments (0)

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REVENUE UP IN Q4 AT JUPITERMEDIA



March 15, 2007

Jupitermedia Corporation had revenues of $34.8 million for the quarter ending December 31, 2006 exceeding the guidance it had given of $33 to $34 million. Revenue was up almost $1 million from the previous quarter and up 5% from $33.2 million in the same quarter in 2005. Total revenues for all of 2006 were $137.530 million and the Online Image division revenues were $106.636 million.

Fourth quarter revenues for the image division were $27.087 million up almost $1 million from the previous quarter and up 9.4% from Q4 2005.

During the year Jupitermedia acquired a number of imaging properties including HAAP Media (stockxpert.com), Stock Image, Pixland, The Beauty Archive, IFA Bilderteam GmbH (www.ifa-bilderteam.com), Workbookstock.com and Cover Images. These acquisitions should have provided a significant boost in overall revenue. Without these brands organic revenue growth would have been much less than the 9.4% difference between Q4 2005 and Q4 2006 revenue figures.

Earnings per diluted share from continuing operations were $0.21, up from a guidance of about $0.06, and these revenues included non-cash stock-based compensation of $0.06.

Jupitermedia's Chairman and CEO Alan M. Meckler said, "We have been emphasizing the development of our Jupiterimages division and have made significant investments in our image production, technology platforms and direct sales teams during the year. At the same time, we have made progress in integrating our many recent image acquisitions. In addition to the expansion of our image offerings, we have continued to increase our wholly-owned royalty-free music offerings. In the fourth quarter we started making investments in our Media business, with the launch of several new IT Web sites and companion trade shows. In addition, we recently announced the acquisition of the remaining 50.1% interest in the ISPCON trade shows and the acquisition of JustTechJobs.com, which is a natural e-commerce offering for our Online Media business audience of over 20 million unique users."

Online Image Division

The following is a breakdown of the various categories of the Online Images division.



























Q4 2005

Q1 2006

Q2 2006

Q3 2006

Q4 2006

Single Images & CD's

$17.087

$13.209

$14.165

$13.566

$14.1

Subscriptions

$5.732

$6.320

$6.166

$6.376

$6.8

Distributors & Other

$1.934

$7.278

$6.234

$6.235

$6.2

Total Online

$24.753

$26.807

$26.565

$26.177

$27.087




Chris Cardell, President and COO noted that approximately 15% of their single image business ($2 million) is for RM images, particularly from their FoodPix, Nonstock and Botanica brands and that RM is one of the fastest growing areas of their business. The newly acquired Cover Images contributed approximately $600,000 in RM growth in Q4. Meckler said the premium priced Jupiter Images Unlimited is the fastest growing subscription offering with a 90% renewal rate.

Business Outlook

The company expects first quarter 2007 revenue to be in the range of $34.5 and $35.5 million. Due to approximately $2 million in legal and other fees associated with the discussions of possible acquisition by Getty Images that were terminated recently net income is expected to be approximately break even for the first quarter. This net income estimate does not include non-cash stock based compensation expenses. The impact of the non-cash stock expenses is expected to reduce earnings per share by approximately $0.01 for Q1 2007. Jupiter gave no prediction for the next twelve months.

The following chart shows Jupitermedia's gross revenue for the last four quarters and the percentage of revenue contributed by the Jupiterimages division.






















Q4 2005

Q1 2006

Q2 2006

Q3 2006

Q4 2006

Image Division

$24.753

$26.565

$26.807

$26.177

$27.087

Gross

$33.200

$33.900

$35.026

$33.784

$34.779

% Imaging

70%

78%

76%

77%

77.9%



Acquisitions

In October 2006, Jupitermedia announced that its Jupiterimages division acquired all of the shares of Cover - Imagen y Publicaciones, S.L. (www.cover.es). With offices in Barcelona and Madrid, Cover Images is a leading agency focused on the distribution of local and international rights-managed images. Terms of this acquisition were not disclosed.

In December 2006, Jupitermedia announced the acquisition of controlling ownership in HAAP Media Ltd. having increased its ownership position from an initial 49.7% equity investment made in January 2006 to 90% in HAAP Media Ltd. Based in Budapest, Hungary, HAAP Media operates Stockxpert.com (www.stockxpert.com), a micropayment stock photo Web site, and Stock.xchng (www.sxc.hu), a stock photo community Web site. Financial terms of this transaction were not disclosed.


In December 2006, Jupitermedia announced the acquisition of JustTechJobs.com (http://www.justtechjobs.com/), an online tech job site. JustTechJobs.com has selected the leading technologies in the IT industry and has created separate vertically focused Web sites dedicated exclusively to each. This niched approach gives JustTechJobs.com the unique ability to get the right job postings directly to the right technology professionals. Terms of this acquisition were not disclosed.

In January 2007, Jupitermedia announced that its Jupiterimages division acquired the assets of StudioCutz.com (www.studiocutz.com) and BlueFuseMusic.com (www.bluefusemusic.com) from Mediatone Music, Inc. Also included in the transaction were the assets of NoiseFuel.com (imaging elements & sound effects, www.noisefuel.com) and MediaMusicLoops.com (www.mediamusicloops.com). These sites include a music library of over 2,600 wholly-owned tracks of high quality royalty free music and 5,500 sound effects. Terms of this acquisition were not disclosed.

In January 2007, Jupitermedia announced that it acquired the remaining 50.1% interest in the two annual ISPCON trade shows as well as 100% of the INBOX trade shows from The Golden Group I, Inc. Jupitermedia now owns 100% of these properties, up from the 49.9% interest in ISPCON held prior to the transaction. Financial terms of this transaction were not disclosed.

New Online Images Offerings

Jupitermedia continued to expand and strengthen its world-class proprietary Jupiterimages offerings with the addition of the following:

    In October 2006, Jupitermedia announced the launch of JupiterGreetings.com, a new paid subscription service for animated online greeting cards, 3D films and cartoons, online photo albums and more. By combining some of the 400,000 high-quality 3D animations and movies from Animation Factory (www.animationfactory.com) with music and sound effects from RoyaltyFreeMusic.com (www.royaltyfreemusic.com), Jupiterimages has efficiently and rapidly created a new line of business.

    In February 2007, Jupitermedia announced the launch of RoyaltyFreeMusic.com's (www.royaltyfreemusic.com) subscription service, which provides subscribers with access to its entire wholly-owned library of over 6,000 music tracks and more than 10,000 sound effects. Subscriptions are available for one month and one year, allowing subscribers to download up to 90 tracks and 300 sound effects per month. Benefits to subscribers include access to brand new tracks and sound effects added monthly, and the convenience of never having to deal with ongoing licensing fees for their projects.

Superstore

Meckler announced a new project that they call Superstore. The Superstore will sell all types of digitized content in one location. They hope to launch this service early in 2008 and they currently have a team taking all of their diverse product lines and placing them on one e-commerce platform. When this project is completed they believe they have the chance to be the number one resource in the world for designers at any budget level who come to purchase digital content from $1.00 to $500. Here a digital designer or creative professional will find photos of every resolution, clip art, flash animation, flash movies, fonts, music and more.

We believe that in less than 10 years there will be one million web sites and at least 15% of them will be buying anywhere from $300 and $15,000 annually of digitized contents to enhance the user experience on their web site.


Copyright © 2007 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.  

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