InfoSpace Inc. (INSP, Financial) filed Quarterly Report for the period ended 2011-03-31.
Infospace Inc. has a market cap of $318.7 million; its shares were traded at around $8.75 with a P/E ratio of 48.7 and P/S ratio of 1.3.
Mercantila was acquired during the second quarter of 2010; therefore, year-over-year comparisons are not applicable. As a result, we are presenting quarter-over-quarter sequential comparisons for this business. The decrease in product revenue from our E-Commerce segment to $10.0 million for the three months ended March 31, 2011, from $14.3 million for the three months ended December 31, 2010, was primarily due to reducing sales of low-margin products.
The increase in our sales and marketing expense, for the three months ended March 31, 2011 as compared to the three months ended March 31, 2010, was primarily due to advertising for Mercantilas web properties of $1.2 million and an increase in expense associated with direct marketing initiatives of $943,000, which was partially offset by the decrease of marketing associated with the Haggle business, which ceased operations in the fourth quarter of 2010.
In the three months ended March 31, 2011, we also recorded in other loss (income), net, $1.5 million of expense to adjust the estimated earn-out payments to be made related to our acquisition of the Make The Web Better assets and a gain of $1.5 million related to the resolution of a contingent liability.
The increase of $2.6 million in revenue generated by our owned and operated properties for the three months ended March 31, 2011 as compared to the three months ended March 31, 2010 was primarily due to the operation of the acquired Make The Web Better assets, which generated $2.7 million of revenue as an owned and operated web property in the three months ended March 31, 2011, and revenue growth of $1.1 million from our online direct marketing initiatives. Partially offsetting such increases is an overall decline in revenue generated through our owned and operated metasearch engine sites, excluding the revenue from the Make The Web Better purchased assets. This trend is a result of fewer retained users on our metasearch engine sites and, therefore, fewer paid clicks from these sites, which is partially offset by higher fees earned from our search customers for these paid clicks.
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Infospace Inc. has a market cap of $318.7 million; its shares were traded at around $8.75 with a P/E ratio of 48.7 and P/S ratio of 1.3.
Highlight of Business Operations:
This purchase contributed $2.7 million (or 19%) to our search revenue generated through our owned and operated properties for the three months ended March 31, 2011, and, since Make The Web Better had been a distribution partner, there was a corresponding decrease of $9.4 million in distribution revenue from the three months ended March 31, 2010. As we anticipated, the revenue generated by the operation of the acquired Make The Web Better assets has steadily declined since we acquired them, and we expect that the revenue generated will be between $7 million and $8 million in 2011, and decline by approximately 25% in each quarter when compared to the prior quarterly period, as the end-user base of those assets continues to decrease.Mercantila was acquired during the second quarter of 2010; therefore, year-over-year comparisons are not applicable. As a result, we are presenting quarter-over-quarter sequential comparisons for this business. The decrease in product revenue from our E-Commerce segment to $10.0 million for the three months ended March 31, 2011, from $14.3 million for the three months ended December 31, 2010, was primarily due to reducing sales of low-margin products.
The increase in our sales and marketing expense, for the three months ended March 31, 2011 as compared to the three months ended March 31, 2010, was primarily due to advertising for Mercantilas web properties of $1.2 million and an increase in expense associated with direct marketing initiatives of $943,000, which was partially offset by the decrease of marketing associated with the Haggle business, which ceased operations in the fourth quarter of 2010.
In the three months ended March 31, 2011, we also recorded in other loss (income), net, $1.5 million of expense to adjust the estimated earn-out payments to be made related to our acquisition of the Make The Web Better assets and a gain of $1.5 million related to the resolution of a contingent liability.
The increase of $2.6 million in revenue generated by our owned and operated properties for the three months ended March 31, 2011 as compared to the three months ended March 31, 2010 was primarily due to the operation of the acquired Make The Web Better assets, which generated $2.7 million of revenue as an owned and operated web property in the three months ended March 31, 2011, and revenue growth of $1.1 million from our online direct marketing initiatives. Partially offsetting such increases is an overall decline in revenue generated through our owned and operated metasearch engine sites, excluding the revenue from the Make The Web Better purchased assets. This trend is a result of fewer retained users on our metasearch engine sites and, therefore, fewer paid clicks from these sites, which is partially offset by higher fees earned from our search customers for these paid clicks.
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