Kit Digital Says it Expects Report Record Revenues for Q2 2011

Posted by Joe Zaller
Jul 19 2011

KIT announced that it expects to report record revenues when it announces it full Q2 2011 results on August 9th, 2011.

Based on preliminary unaudited information, the company says it had Q2 revenue of approximately $48m, an increase of 39% versus the previous quarter and an increase of 108% versus the same period a year ago. The company said the increase in revenue is attributed to both organic growth and the contribution of newly acquired companies.

The company says it expects to book a net loss for the quarter on a GAAP basis, and that it will take a charge of approximately $10m charge for restructuring and integration.

Operating EBITDA, a non-GAAP metric which management uses as a proxy for operating cash-flow, is expected to total approximately $9.5m, up 34% from the previous quarter and up 125% from the second quarter of 2010.

The company said it added more than 35 net new clients during the quarter, with an average revenue per month per customer (ARPU) of
more than $30,000, which is consistent with the company’s ongoing focus on higher-end opportunities in the market and large, multi-year contracts in emerging sectors and geographies. The company’s client base totaled more than 2,300 customers at June 30, 2011.

Company management reiterates its guidance of approximately $210m in reported revenues for the full year of 2011, which would represent an increase over 2010 of more than 95% overall and between 30% and 35% organically.

The reaffirmed  its expectation of a 23% EBITDA margin for the full year of 2011, with a medium-term goal of approaching a 30% EBITDA margin over the next two years. The company also reiterates it expects to be generating approximately $2.5m in monthly free cash-flow by the end of Q4 2011.

Company chairman and CEO Kaleil Isaza Tuzman said “We are seeing growth in our business accelerating going into the back half of
2011, despite the necessary distractions of M&A integration during the past quarter and our business being a ‘larger ship’ than before. We are confident we will achieve the financial targets and product release schedule that we have set out for ourselves this year, and we are poised for a strong 2012.”

 

Related Content:

Press Release:  KIT digital Expects Q2 2011 Revenue Up 39% to Record $48 Million; Op. EBITDA Up 34% to Record $9.5 Million

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