blinkx sees promise despite losses doubling in 1H2009

Online video search engine blinkx saw it revenues for the first half of its fiscal year more than double to $13.1 million from $6.4 million for the same period a year earlier, as video streams in the United Kingdom and United States saw a 177% increase year-over-year and helped it break into comScore's and Nielsen’s Top 10 Video sites, the company reported this week. Unfortunately, it also reported losses for the first six months of its fiscal year that ended Sept. 30 doubled as well, from $3.26 million to $6.96 million--or 2.5 cents from 1.17 cents per share--as research expenses and operating expenses increased.

But blinkx scored a basketful of promise as well, increasing gross profit 88 percent to $8.5 million, seeing a 238 percent increase in advertising campaigns and experiencing its best six-month growth in content partners, adding 140 new partners including NBC Digital Media, the Meredith Corporation and the Canadian Broadcasting Corporation. The company now has more than 650 partnerships.

Among other highlights for the first half:

  • Top line revenue and gross profit was ahead of analyst projections
  • Daily Video Search run rate increased 249% to 17.4 million searches per day in September 2009,
  • from 7 million per day in September 2008
  • DSO improved to 67 days from 83 days FY2009
  • Loss from operations was $7.4 million and included $1.4 million of non-recurring costs relating to infrastructure investments

blinkx CEO Suranga Chandratillake said despite difficult economic conditions the company has continued to grow. “Our decision to make and deploy significant infrastructure investments early in the period has already proven successful, delivering substantial revenue and gross profit improvements that are reflected in these results.”

He also said blinkx saw opportunity for the remainder or 2009 and 2010, anticipating a “”high-velocity upturn in advertising” as the global economy recovers. “blinkx is perfectly positioned to profit from the increasing dominance of online advertising and the continued momentum towards ROI-driven advertising," he said.

For more:
- see this RTTNews article

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