Stockhouse Weathers Tough Summer Quarter

The Canadian-based financial data company announced third-quarter earnings this week, and the results were congruous with an economy and a stock market on the decline. Year over year revenues fell 27% which was largely due to a dramatic 52% decline in advertising revenue.

When your biggest advertisers are public companies, and those public companies are struggling to survive it should come as no surprise that their advertising budgets would be on the chopping block.

Marcus New, CEO: “Public company issuers who traditionally have been a significant advertising group have rapidly decreased their purchases. This combined with the summer quarter which is traditionally the weakest of the year, caused a significant decline in our advertising revenue and impacted our gross margin. Our pager revenue also declined at a pace faster than anticipated.”

While the quarter was clearly not a good one for Stockhouse, the company is being proactive in dealing with the current economic climate. The company has cut its employee base by over a third since July, and they have also slashed operating costs by 25%.

Stockhouse operates the popular Bullboards message board which has been a favourite of Canadian investors for years.

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