Figuring it out
The company's revenue increased by 27% to $64.8 million, of which service and technology revenue grew by 25% to $51.8 million. Regrettably, TiVo stayed in the red with a sequentially wider net loss of $24.5 million. So what has TiVo been doing to remedy this?
Is there light at the end of the tunnel?
During the third quarter, TiVo finally managed to end four years of declining subscriptions by adding a net 117,000 subscribers, bringing its total count to 2 million. This was made possible by the addition of 220,000 customers by Virgin Media
The company has also recently deployed its products with Grande Communications, Spain's largest cable operator, and also expects Charter Communications
TiVo's strategic deals with operators would give the company a reach of more than 10 million homes. And according to TiVo, it has only begun to scratch the surface of what could be a huge opportunity.
Why, you may ask? This is because TiVo sits in a sweet spot as one of the very few companies that builds cost-effective and advanced TV solutions that many pay TV operators would gladly use.
Pay TV operators are increasingly using TiVo because the company provides fast solutions that help the end consumer. And that in turn helps to stem the subscription decline these operators have been facing of late. Therefore, the tie-ups are a win-win situation. But everything's not going great for TiVo.
TiVo, AT&T, and Microsoft duke it out
TiVo also has its share of detractors in the form of AT&T
The Foolish bottom line
Could the tie-ups with pay-TV operators herald the beginning of a turnaround? It may well be so. But until TiVo starts showing some green in its bottom line, I'll be watching from the sidelines. To stay updated on TiVo's progress, don't forget to add it to your very own watchlist. It's free and lets you stay up to speed on the latest news and analysis for your favorite companies. Simply click here to get started.