NEW YORK, Nov. 6, 2014 /PRNewswire/ -- TheStreet, Inc. (NASDAQ: TST), a leading digital financial media company, today reported financial results for the third quarter of 2014. The Company reported revenue of $14.6 million, a net loss of ($0.5) million and Adjusted EBITDA((1)) of $1.2 million.

Revenue in the third quarter of 2014 was $14.6 million, an increase of 7.6% from $13.6 million in the prior year period. Adjusted EBITDA was $1.2 million in the third quarter compared to Adjusted EBITDA of $0.3 million in the prior year period.

Subscription Services revenue in the third quarter was $11.7 million, an increase of 4.9% compared to the prior year period primarily due to increased subscribers for the investing newsletters. Media revenue in the third quarter was $2.9 million, an increase of 20.2% compared to the prior year period primarily due to increased demand from new and repeat advertisers.

Net loss in the third quarter was ($0.5) million compared to a net loss of ($1.2) million in the prior year period. The Company reported basic and diluted net loss per share attributable to common stockholders of ($0.02) in the third quarter of 2014 compared to ($0.03) in the prior year period.

"We are pleased with the progress we have made thus far in 2014 in executing against our strategic goals we set at the beginning of the year," said Elisabeth DeMarse, Chairman, President and Chief Executive Officer. "We continue to invest in our subscription platform by enhancing and improving our existing products as well as through expansion, as evidenced by our recent acquisition of BoardEx. We believe these strategic investments will further enable us to take advantage of market opportunities available to us," concluded DeMarse.

Operating expenses in the third quarter were $15.1 million, an increase of 2.1% compared to the prior year period.

The Company generated $1.6 million in operating cash flow for the nine months ended September 30, 2014, compared to $0.5 million for the prior year period. The Company ended the quarter with cash and cash equivalents, restricted cash and marketable securities of $57.2 million. On November 3(rd), 2014, the Company announced the completion of its acquisition of BoardEx for approximately $21.0 million in cash, reducing its balance to approximately $36.2 million.

Selected Operating Metrics


    --  For total Subscription Services:
        --  Bookings for the third quarter were $9.8 million, a decrease of
            (5.2%) from the prior year period.
        --  Bookings for the trailing four quarters ending September 30(th),
            2014, were $46.5 million, an increase of 5.4% from the prior year
            period.
    --  For Subscription Newsletters((2)):
        --  The number of paid subscriptions at the end of the period was
            82,900, an increase of 11.3% from the prior year period and 0.7%
            sequentially.
        --  Average revenue per user for the third quarter decreased (5.1%)
            compared to the prior year period and increased 1.7% sequentially.
        --  Average monthly churn was 3.3% for the third quarter, compared to
            2.0% in the prior year period and 3.7% sequentially((3)).

Conference Call Information

TheStreet will discuss its financial results for the third quarter today at 4:30 p.m. ET.

To participate in the call, please dial 888-481-2877 (domestic) or 719-325-2484 (international). The conference code is 3577292. This call is being webcast and can be accessed in the Investor Relations section of TheStreet website at http://investor-relations.thestreet.com/events.cfm.

A replay of the webcast will be available approximately two hours after the conclusion of the call and remain available for approximately ninety calendar days.

About TheStreet

TheStreet, Inc. (www.t.st) is a leading independent digital financial media company providing business and financial news, investing ideas and analysis to personal and institutional investors worldwide. The Company's portfolio of business and personal finance brands includes: TheStreet, RealMoney, RealMoney Pro, Stockpickr, Action Alerts PLUS, Options Profits, MainStreet and RateWatch. To learn more, visit www.thestreet.com. The Deal, the Company's institutional business, provides intraday coverage of mergers and acquisitions and all other changes in corporate control. To learn more, visit www.thedeal.com.

Non-GAAP Financial Information

((1) )To supplement the Company's financial statements presented in accordance with United States generally accepted accounting principles ("GAAP"), the Company uses non-GAAP measures of certain components of financial performance, including "EBITDA," "Adjusted EBITDA" and "free cash flow." EBITDA is adjusted from results based on GAAP to exclude interest, income taxes, depreciation and amortization. This non-GAAP measure is provided to enhance investors' overall understanding of the Company's current financial performance and its prospects for the future. Specifically, the Company believes that the non-GAAP EBITDA results are an important indicator of the operational strength of the Company's business and provide an indication of the Company's ability to service debt and fund acquisitions and capital expenditures. EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation of tangible assets and amortization of certain intangible assets that were recognized in business combinations. Adjusted EBITDA further eliminates the impact of non-cash stock compensation, restructuring, transaction related costs and other charges affecting comparability. A limitation of these measures, however, is that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's businesses. Management evaluates the investments in such tangible and intangible assets through other financial measures, such as capital expenditure budgets and investment spending levels. "Free cash flow" means net loss plus non-cash expenses net of gains/losses on dispositions of assets, less changes in operating assets and liabilities and capital expenditures. The Company believes that this non-GAAP financial measure is an important indicator of the Company's financial results because it gives investors a view of the Company's ability to generate cash.

((2) )Subscription newsletters includes investing newsletters and excludes subscriptions from The Deal, DealFlow Media and Rate Watch.

((3) )Average monthly churn rate is defined as subscriber terminations/expirations in the quarter divided by the sum of the beginning subscribers and gross subscriber additions for the quarter, then divided by three. Subscriptions that are on a free-trial basis are not regarded as added or terminated unless the subscription is active at the end of the free-trial period.

Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding the impact of the Company's growth initiatives and expectations for 2014. Such forward-looking statements are subject to risks and uncertainties, including those described in the Company's filings with the Securities and Exchange Commission ("SEC") that could cause actual results to differ materially from those reflected in the forward-looking statements. Factors that might contribute to such differences include, among others, economic downturns and the general state of the economy, including the financial markets and mergers and acquisitions environment, our ability to drive revenue, and increase or retain current subscription revenue, our ability to optimize our free site and generate new subscription revenue; our ability to successfully integrate Management Diagnostics Limited, the developer of BoardEx, and other acquisitions; our ability to develop new products; competition and other factors set forth in our filings with the SEC, which are available on the SEC's website at www.sec.gov. All forward-looking statements contained herein are made as of the date of this press release. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results or occurrences. The Company disclaims any obligation to update these forward-looking statements, whether as a result of new information, future developments or otherwise.

Contacts:
John Ferrara
Chief Financial Officer
TheStreet, Inc.
212-321-5234
ir@thestreet.com

Erica Mannion
Investor Relations
Sapphire Investor Relations, LLC
415-471-2700
ir@thestreet.com

SOURCE TheStreet, Inc.