News Column

Big revenue gains for Austin online coupon company RetailMeNot

February 6, 2014

By Lori Hawkins, Austin American-Statesman



Feb. 06--Boosted by a consumer shift to mobile devices, Austin-based online coupon company RetailMeNot on Wednesday reported big gains in quarterly and annual revenue.

The company posted revenue of $78.5 million in the fourth quarter, a 55 percent increase in revenue from the same quarter in 2012.

For all of 2013, the company's revenue grew 45 percent to $209.8 million.

The company missed analysts' estimates of 29 cents per share, posting earnings of 26 cents for the quarter, compared to earnings of 31 cents for same quarter a year ago.

But that didn't stop Wall Street from sending RetailMeNot shares up nearly 9 percent, or $3.05, in morning trading. Earnings were announced before markets opened.

Founded in 2009 as WhaleShark, RetailMeNot has become the world's leading online marketplace for coupon and consumer deals, mostly by buying smaller websites. In 2010 it bought RetailMeNot, an Australian company that built one of the coupon sites in the world. The company changed its name to RetailMeNot last year.

Today, it runs digital coupon sites around the world, including in France, Germany, the Netherlands and the United Kingdom.

The company has 450 employees, including more than 300 in Austin.

RetailMeNot's earnings report was bolstered by its mobile performance. In the fourth quarter, the company had mobile revenue of $11.7 million, up 179 percent from the year ago quarter. Annually, mobile revenue hit $26.6 million, up 213 percent from mobile revenue in 2012.

The number of times RetailMeNot apps have been downloaded also soared. The company said app downloads rose to 13.7 million at the end of the year, up from 4.5 million at the end of 2012. In addition, subscribers to its newsletter and store alert emails more than doubled, with 17.1 million global subscribers at the end of 2013.

RetailMeNot raised $191 million through an initial public offering in July. In December, the company completed a follow-0n offering of 2 million shares of Series 1 stock at $26 per share.

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Source: Austin American-Statesman (TX)


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