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What: Shares of Active Network (NYSE: ACTV) have jumped today by upwards of 30% after the company reported strong earnings and hinted at a possible acquisition.
So what: Revenue in the second quarter added up to $132.4 million, easily beating the Street's $130.9 million forecast. Profitability also beat expectations, with non-GAAP earnings per share of $0.08 topping the consensus estimate of $0.06 per share in adjusted profit. Guidance came in below expectations, but investors were pleased to hear that the company is exploring strategic transactions.
Now what: Active Network said it has received interest from outside parties ranging from investments in the company to an outright acquisition. The board has formed a committee to evaluate strategic alternatives, and there is nothing more to officially report quite yet. The company will evaluate its options, including continuing upon its current strategy. Active Network will not disclose developments until the evaluation process is complete, and has tapped Citigroup as a financial advisor.
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