Shopzilla’s Revenue Up. Earnings Down?

Just in case you thought I was picking on Shopping.com the other day, I also took a closer look at Shopzilla’s numbers through Scripps’ earnings call.

Q2 2005 revenue of $29.5 million and earnings of $7.6 million.
Q3 2005 revenue of $32.5 $35.2 million and earnings of $7.3 million.

I like the 19% increase in revenue, but why did earnings decrease 4% quarter to quarter? As Shopzilla is now part of a larger entity, I didn’t get the kind of answer I was looking for.

According to Farhad Mohit, Founder and Chief Product Officer, “at this stage in the game where gaining marketshare is most important, we are very very pleased with the topline revenue growth that we are experiencing and take that as a sign that we are helping more and more consumers and sending an increasing number of quality leads to our retail partners.”


Farhad said

Q3 ‘05 was $35.2MM, but what’s a few million dollars among friends… :)

Farhad.


Brian Smith said

Hey, don’t make fun of my dyslexia. Sorry about that! -b


Tim said

They’re doing zero- or negative-margin deals to get the revenue growth.


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