Following the departure of its Chairman and its CEO, Dave Alberga and Matt Landa, this week – ACTIVE Network has set out its financial results for the first quarter of 2013.
In the three months to 31 March 2013:
- Total net revenue was up 12% year-on-year to US$106.0 million
- Technology revenue increased 13% and constituted 90%, or US$95 million, of total net revenue
- Net registration revenue increased 11% to US$70.5 million; although the number of registrations were flat year-on-year, revenue per registration was up 11%
- Marketing services revenue constituted 10%, or US$11 million, of total net revenue
- Gross margins increased 230 basis points as a percentage of revenue to reach 52.6%
- ACTIVE’s overall net loss was US$15.2 million compared to a net loss of US$20.3 million in Q1 2012
- Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) was US$6.1 million
“Our strong first quarter 2013 revenues and bottom line results demonstrate the company’s ability to scale our infrastructure and deliver gross margin accretion [accumulation of value over time],” said Scott Mendel, CFO of ACTIVE Network.
He added, “Cash flow for the quarter was very strong, reflecting our top line growth and following typical seasonal patterns. We remain focused on driving operational efficiency to capitalize on our large market opportunity and generate long-term growth.”
ACTIVE Network renewed exclusive multi-year contracts with well-known clients including Gartner, World Triathlon Corp (Ironman); Georgia State Parks and Recreation.Gov, which services the National Park Service; the National Forest Service; Bureau of Land Management; and the Army Corps of Engineers.
‘Marquee customer highlights’ included wins from YMCA Los Angeles, New Jersey Department of Environmental Protection, Two Cities Marathon and Woodlands Marathon.
ACTIVE Network announced that the YMCA of Greater San Antonio, has extended its relationship and is migrating from Class software to ACTIVE Net, a cloud-based solution that can help improve operational efficiency, engage members and drive participation by offering better online access to activities.
ACTIVE Network has also rolled out ACTIVE On-Site, a mobile app and branded credit card reader to help race directors simplify and speed up the on-site check-in, registration and payment process.
For the second quarter of 2013, ACTIVE expects total revenue to be in the range of US$128 million to US$133 million. Registrations are expected to grow approximately 3% to 8% and revenue per registration is expected to grow approximately 3% to 5% compared to the same period in 2012.
The company expects to post a net loss of US$10 million to US$3 million and adjusted EBITDA in the range of US$18 million to US$21 million.
ACTIVE’s second quarter guidance includes the estimated impact of one-time charges associated with its recent management changes.
For the full year of 2013 – due to the recent management changes, ACTIVE Network is ‘prioritizing and accelerating its strategic and financial goals for the remainder of the year.’ Accordingly, the company ‘will not be providing full year 2013 guidance at this time, but expects to do so once it has had an opportunity to align its financial projections with its go-forward strategy.’