Analyst: RetailMeNot poised for strong holiday sales

Nov 14, 2013
Austin Business Journal

Online coupon supplier RetailMeNot Inc. is positioned to outperform e-commerce giant Amazon.com during the upcoming holidays


Analysts are forecasting Austin-based RetailMeNot to increase revenue more than 35 percent compared with last year versus Amazon.com’s (Nasdaq: AMZN) expected growth rate of 22 percent. The difference is being attributed to RetailMeNot's business model combined with surging metrics in nearly every category, according to a report in Motley Fool


RetailMeNot (Nasdaq: SALE), which was founded in 2007 as Smallponds Inc., took the name WhaleShark Media Inc. as it grew via 11 acquisitions. It employs about 400 workers and operates coupon websites in several countries


Last week, RetailMeNot posted a third-quarter profit of $5.5 million on revenue of $47.3 million compared with a profit of $6.5 million on revenue of $34.1 million during the same period last year. Its net income declined 15 percent despite the 39 percent surge in revenue, according to a filing with the U.S. Securities and Exchange Commission


In October, RetailMeNot’s initial public offering, which was completed in July, was ranked among the top 10 best-performing IPOs in the world during the third quarter. The IPO raised $191 million for the company but saw its share price gain 71 percent during the quarter from its issue price of $21


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