KIT digital reported that its revenue for the third quarter of 2011 was $62.3m, an increase of 124% versus the same period last year, and up 29% versus the previous quarter. Excluding the contribution from acquisitions, the company’s revenue was up 35% versus last year and up 11% versus last quarter on a pro forma basis.
The company said that 71% of its revenue in the third quarter of 2011 were related to video platform fees, and approximately 29% were derived from fees related to broadcast systems integration, solutions and interface design, content transformation and other professional services.
Significantly, the company posted GAAP net income of $4.8m for the quarter. This is the first time that Kit Digital has posted GAAP net income. During the third quarter of 2010, the company posted a GAP net loss of $8m. Last quarter the company’s GAAP net loss was $19.8m. On a non-GAAP basis, the company said its EBITDA for the quarter was $14.3m, up 223% over Q3 2010.
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Strong Guidance
KIT digital says it expects its Q4 2011 revenue to be at least $67m, representing a prospective 8% sequential and organic increase over Q3, and up 74% from the same year-ago period. This Q4 guidance implies a revenue expectation for the full year of 2011 of approximately $212m, representing an increase over 2010 of approximately 100% overall and more than 35% organically.
The company also said it expects record operating EBITDA in Q4 2011 of approximately $17.5m, representing an increase of over 20% sequentially, and up over 150% versus the same period a year ago.
The company also reaffirmed the expectation of at least $300m of revenue in 2012m, with an organic growth rate of approximately 25-30%.
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“These record results, particularly in what has historically been a seasonally weak quarter, reflect our ability to drive strong organic revenue growth while increasing the operating leverage and margin profile of our business,” said KIT digital’s chairman and CEO, Kaleil Isaza Tuzman. “The third quarter marked an important milestone for the company, as we crossed over to GAAP net profitability and recognized the last remaining restructuring and integration charges related to the acquisitions we completed in the first half of the year. This will allow us to take advantage of strong free cash flow generation going forward, which we expect to be at least $2.5 million per month by the end of Q4.
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Related Content:
Press Release: KIT digital Reports Record Q3 2011 Results
Previous Quarter: Kit Digital Reports Wider Losses as Revenue Doubles in Q2 2011
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