Kit Digital Reports Wider Losses as Revenue Doubles in Q2 2011

Posted by Joe Zaller
Aug 09 2011

KIT digital, reported that its revenue for the second quarter of 2011 was $48.2m, an increase of 40% versus the previous quarter and an increase of 109% 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 GAAP net loss for the quarter was $19.8m versus a GAAP net loss of $12.5m last year, worse than expected by analysts. The company said that the quarterly loss included more than $12m in net non-cash charges.

Revenue from the company’s Europe, Middle East & Africa (EMEA) region constituted more than 50% of the total during the second quarter, with the remainder approximately split between the Americas and Asia-Pacific regions.

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.  Kit digital’s had  more than 2,300 customers at June 30, 2011.

“Our pace of internal growth strengthened during the quarter, driving annualized organic revenue growth within our 30-35% target range,” said Kaleil Isaza Tuzman, chairman and CEO of KIT digital. “KIT digital continues to operate in the ‘sweet spot’ of the global transformation of traditional broadcast television and one-way video communications to multi-screen, OTT and social video solutions.”



The company said it expects revenues in Q3 2011 to be more than $61m, impling an organic growth rate of approximately 40% annually relative to Q2 2011, after back-dating acquisitions completed in Q2 to the beginning of the quarter. For the full year of 2011, the company reaffirmed its revenue guidance of approximately $210 million, which would represent an increase over 2010 of more than 95% overall and more than 30% organically.

Management also continues to expect an operating EBITDA margin target of 23% for the full year of 2011, with the goal of achieving in the vicinity of a 30% EBITDA margin on a monthly basis by the end of 2012.



Related Content:

Press release: KITdigital Reports Record Q2 2011 Results

KIT digital Revenues Jump 98%  in Q1 2011, Says M&A Phase is Over and Company Will Now Focus on Organic Growth Strategy

More Broadcast Vendor M&A: Kit Digital Buys ioko for $79.4m, Completes Buying Spree

KIT digital Reports Q4 and Fiscal 2010 Results, Raises Guidance, Says Big M&A Deal Still on Track

More Broadcast Vendor M&A: KIT digital Acquires Polymedia for $34.4m

More Broadcast Vendor M&A: Kit Digital Buys Three Companies for $77m, Says larger Acquisition is Coming



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