"We are bullish for 2009, projecting approximately $50 million in overall revenue and a return to net income for the entire year," said Heath Clarke, Local.com chairman and CEO, in a statement. "Despite a challenging economy, we are well positioned and have a balance sheet that will allow us to take advantage of strategic opportunities throughout the year. Our focus is on continued execution in driving sales and organic traffic."
Fourth-quarter 2008 revenue was $9.6 million--slightly above the mid-range of the company's prior guidance of $9 to $10 million. This represented growth of 61% over the fourth quarter of 2007. A net loss of $2.2 million or $0.15 per common share was at the mid-range of guidance--an increase of $0.5 million from the third quarter of 2008 that included non-cash expenses of $935,000 or $0.06 per share.
Adjusted EBITDA was ($1.3 million), an improvement from ($1.7 million) in the fourth quarter of 2007. Adjusted EBITDA is net loss excluding: provision for income taxes; interest and other income (expenses), net; depreciation; amortization; and stock based compensation charges.
The company expects first-quarter 2009 revenue to be between $10.6 and $10.8 million, which represents between an 11% and 13% sequential increase over the fourth quarter of 2008. The company expects net loss for the first quarter of 2009 to be approximately $2.5 million, or ($0.17) per share, and to include the following items: interest and other income and (expenses) of $6,000; depreciation and amortization of $425,000; and stock based compensation charges of $465,000.
Excluding the above figures from net loss, adjusted EBITDA is expected to be approximately ($1.6 million), or ($0.11) per share for the first quarter of 2009. The loss-per-share forecast assumes a weighted average share count of 14.45 million.
For fiscal 2009, the company expects revenues to be approximately $50 million, which represents about a 31% growth over 2008; the company also expects to have net income for fiscal 2009.