Jupitermedia's Q2 2008 revenues were $35 million up from $34.5 million in Q1 2008. Second-quarter revenue was up slightly from $34.7 million in the same period in 2007. Total revenue for the online images segment of their business was flat compared to the previous quarter at $26.1 million, down 4.7% from $27.383 a year earlier.
However, the fact that the steady decline in revenue over the five previous quarters has now flattened out is good news (see chart below).
At the close of business on August 7, Jupiter's stock was valued at $1.30 per share and the market capitalization was $46.84 million. Loss per diluted share was $0.09, including non-cash stock-based compensation expense of $0.07 per diluted share. Excluding this non-cash expense, loss per diluted share was $0.02 and EBITDA was $5.3 million for the quarter.
Alan M. Meckler, Chairman/CEO of Jupitermedia, said, "Revenues from our JupiterimagesUnlimited high-level royalty-free subscription offering grew over 90% from the first half of 2007 to the first half of 2008. We also continue to experience significant growth from our Stockxpert.com microstock offering, both with single images and subscriptions. Our deferred revenue for both JupiterimagesUnlimited and our Stockxpert.com microstock subscription offerings continue to increase."
During the conference call, Meckler acknowledged that high-end single-image RF sales are no longer a growth business. He characterized the RM side of the business as "holding its own".
While the JupiterimagesUnlimited (JIU) subscription product is the company's shining star, revenue from all subscription products was down 8% for the first six months of 2008 compared to the same period in 2007. Sales of the other subscription products have been declining at a more rapid rate than JIU is growing.
3 Revenue Categories
Jupiterimages revenue is divided into three categories: Single Images and CDs, Subscriptions and Distributors/Other.
| |
Q1 2007
|
Q2 2007
|
Q3 2007
|
Q4 2007
|
Q1 2008
|
Q2 2008
|
| Single Images |
14.3
|
13.936
|
13.197
|
12.7
|
12.601
|
12.6
|
| Subscriptions |
6.814
|
7.049
|
7.146
|
7.5
|
7.677
|
7.8
|
| Distributors, Other |
6.8
|
6.398
|
6.481
|
6.583
|
5.864
|
5.7
|
| |
|
|
|
|
|
|
| Image Division |
27.914
|
27.383
|
26.824
|
26.783
|
26.142
|
26.1
|
| |
|
|
|
|
|
|
| Total Revenue |
$34.80
|
$34.70
|
$34.77
|
$36.10
|
$34.55
|
$35.00
|
Single image Revenue has stopped its decline, but revenue from distributors is down 11% from a year earlier. Revenue from subscriptions continues to creep upward and could take a nice jump in Q3, depending on how JIU Plus is priced
JIU Plus will be launched later this month and combines the high-end subscription product with a subscription version of the company's Stockxpert microstock collection. Customers will be able to seamlessly move from JIU to Stockxpert through one subscription product. It is unclear how these two different products will be priced.
Does the customer now have a choice of millions more images for the same price, or will Plus pricing be higher? The expanded offering will better meet the needs of some customers, but at $.30 per download it is unclear how it will benefit photographers. Many of Stockxpert's photographers have been rebelling against having their images included in this product.