Jupitermedia Revs Rise In Q4

Jupitermedia's Q4 2007 revenues were $36.1 million, up from $34.78 million in the same period in 2006 and from $34.77 million in Q3 2007. Growth was in the online media division, due primarily to the acquisition of Media Bistro. Revenue for online images, which represents 74% of the company's business, continued a steady slide since its peak in Q1 2007; it was down 4% to $26.783 million. In Q4 2006, the comparative revenue was $27.087 million.

Total revenue for 2007 was $140.33 million up 2% from $137.53 million in the previous year. Revenue for the online images division was up 2% to $108.904 million compared to $106.636 million in 2006.

Alan M. Meckler, Chairman/CEO of Jupitermedia, said, "Our Rights Managed category experienced over 30% revenue growth from 2006 to 2007. In addition, revenues from our JupiterimagesUnlimited high level royalty-free subscription offering grew over 275% from 2006 to 2007. Our backlog for JupiterimagesUnlimited increased sharply during 2007, which bodes well for future revenues."

3 Categories of Revenue

Jupiterimages revenue is divided into three categories: Single Images and CDs, Subscriptions and Distributors and Other. The single image revenue was $12.7 million, down from $14.01 a Q4 2006 and from $13.197 in Q3 2007. Revenue in this category has declined 11% since its peak of $14.3 million in Q1 2007. The category includes the single images sales of Stockxpert, as well as the traditional RM and RF sales.

RM represented about $2.2 million or 17% of single image revenue for the quarter. Stockxpert also provided significant revenue growth for the category. Thus, the revenue generated by traditional RF sales seems to be declining at a rapid pace.

Meckler said, "We're not making any secret about it. We bit the bullet 15 months ago and said if you're going to depend on growth of high end RF single images, you're going to be in the crapper pretty soon. That's what birthed Jupiterimages Unlimited. In the fourth quarter, with some help from the growth of RM and microstock, Jupiterimages Unlimited has finally brought us back to even. Traditional RF will be here for a long time, but if you're going to build your business around single image RF sales, you might as well pack it in because you're not going to be around in 10 years."

Gross revenue in the subscription category has been growing steadily with $6.8 million in Q1 2007 to $7.049 in Q2, $7.146 in Q3 and $7.6 million in Q4. The subscription segment of Stockxpert falls into this category, but its contribution was fairly nominal in Q4, since the subscription offering was launched in November. The biggest subscription success story is JupiterimagesUnlimited.

Revenue from distributors was $6.583 million and grew from $6.24 million in the same quarter a year ago and from $6.481 in Q3 2007.

In Q1 2008, Jupitermedia expects revenues of $35 to $36 million and diluted earnings per share of approximately $.02. The current market capitalization for the company is just under $100 million and 36,029,651 shares were outstanding on December 31, 2007.

Jupitermedia also disclosed that a charge for impairment was required under relevant accounting principles with respect to Jupitermedia's valuation of goodwill and intangible assets associated with Jupitermedia's online images reporting segment in Q4 2007. Based on its review to date, Jupitermedia's management currently anticipates that the restatement will result in a decrease to net income of approximately $1.5 million in 2006 and an increase to net income of approximately $300,000 in the first quarter of 2007. It will also impact certain balance sheets adjustments to deferred income taxes, income taxes payable and goodwill.

For more historic details see the chart below.