As is the case with many digital companies, RetailMeNot demonstrated it could grow revenue in the second quarter, but generating a profit was a different matter.
The Austin-based provider of digital offers reported strong user growth with site visits ups 27% to 154.2 million from 121.2 million and said its sales for the quarter ended June 30 increased 37% to $59.5 million. Despite more users and increased sales, net income fell 16% to $4.3 million with the decline said to be due to increased investments in product development, sales and marketing, and higher stock-based compensation expense.
"Our results continue to demonstrate the value of our multi-channel services that help consumers save money and enable retailers to increase sales in the United States and international markets," said Cotter Cunningham, CEO and founder of RetailMeNot. "Overall we saw strong growth in consumer usage and engagement across platforms. We believe that from discovery to purchase, we offer retailers high ROI channels that help them turn shoppers into buyers."
The company said its mobile apps have been downloaded 18.5 million times globally and noted that mobile app sessions increased to 169.2 million in the second quarter compared to 26.5 million the prior year. RetailMeNot had 22.9 million global subscribers to a newsletter or store alert, up 98% year-over-year.
Based on current trends, RetailMeNot is on track to surpass last year’s performance when it had more than 560 million visits to its Web sites.