TheStreet.com Inc. said Tuesday its first-quarter earnings fell 22 percent due to rising expenses as the online financial media company undergoes initiatives to revamp its main Web site, TheStreet.com, and launch MainStreet.com.
Results fell short of analyst estimates, sending shares lower in premarket trading.
Net income after preferred stock dividends fell to $2.4 million, or 7 cents per share, from $3 million, or 11 cents per share, during the same period last year.
Net revenue rose 31 percent to $18.9 million from $14.5 million during the year-ago period.
Analysts polled by Thomson Financial, on average, forecast earnings of 10 cents per share on revenue of $20 million.
Marketing services revenue, which encompasses advertising and interactive markets services, increased 62 percent to $8.2 million. Paid services revenue, which includes subscriptions, syndication and licensing, grew 14 percent to $10.8 million.
Growth in revenue was offset though by rising expenses, as the company revamped its Web site and launched a new personal finance site, MainStreet.com.
Expenses surged 41 percent to $17 million from a year ago. Costs of services increased 36 percent, while general and administrative costs increased 61 percent.
Shares of TheStreet.com fell $1.23, or 13 percent, to $8.25 in premarket trading.
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