Shares of Bankrate, Inc. (RATE) soared nearly 13 percent in extended trading on Tuesday after the online financial information service provider reported results for the first quarter that topped analysts' expectations. However, the company reported a profit that plunged from last year, reflecting lower revenues and margins. The company also maintained its revenue guidance for the full-year 2013.
"We continue to see progress in the transition of our insurance channel to a higher-quality lead model, with our first sequential quarter over quarter growth since we began culling low performing lead sources a year ago," President and CEO Thomas Evans said in a statement.
The North Palm Beach, Florida-based publisher of personal finance content on the Internet reported net income of $2.18 million or $0.02 per share for the first quarter, lower than $10.15 million or $0.10 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter was $12.16 million or $0.12 per share, compared to $18.71 million or $0.18 per share in the year-ago quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter declined 13 percent to $108.4 million from $125.02 million in the same quarter last year, but topped nine Wall Street analysts' consensus estimate of $102.58 million.
"Our banking and credit card verticals grew nicely, both showing double-digit growth over the same period last year," Evans added.
Display advertising, or CPM revenue, for the quarter increased 12 percent, while lead generation revenue, which consists of CPA and CPL revenue, decreased 18 percent from last year. Hyperlink, or CPC revenue, for the quarter also declined 5 percent from a year ago.
Adjusted gross margin for the quarter contracted 100 basis points to 66.9 percent from last year's 67.9 percent.
The company noted that it has launched new and improved iOS and Windows phone mortgage apps in continuing to execute on its mobile strategy, while also being in the final stages of development of its latest tablet apps, which the company expects to launch in the second quarter.
Looking ahead to fiscal 2013, the company said it continues to expect revenue to be relatively flat compared to 2012, implying revenues of about $457 million that it reported for fiscal 2012. Street is currently looking for full-year 2013 revenue of $452.19 million.
Further, Bankrate added that it anticipates revenue for the first half of 2013 to show a year-over-year decline of 10 to 20 percent and the second half of the year to show an overall revenue growth of 10 to 20 percent, primarily as the current momentum in insurance continues.
RATE closed Tuesday's regular trading session at $13.48, down $0.04 or 0.30% on a volume of 0.92 million shares. However, the stock soared $1.72 or 12.76% in after-hours trading.
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