Arena (AREN)2024-11-14 21:05Revenue Performance - For the three months ended September 30, 2024, digital advertising revenue decreased by approximately 19% compared to the same period in fiscal 2023[150] - For the nine months ended September 30, 2024, digital advertising revenue decreased by approximately 6% compared to the same period in 2023[150] - Total revenue for the three months ended September 30, 2024, decreased by $3,441, or 9.3%, to $33,555 compared to $36,996 for the same period in 2023[177] - For the nine months ended September 30, 2024, total revenue decreased by $9,807, or 9.9%, to $89,679 compared to $99,486 for the same period in 2023[188] - Digital revenue for the nine months ended September 30, 2024 was $88,129, down 3.9% from $91,711 in the same period of 2023, with significant declines in digital subscriptions and advertising revenue[190] Profitability Metrics - Gross profit for the three months ended September 30, 2024, increased by $3,043, or 21.8%, to $16,993, with a gross profit margin of 50.6% compared to 37.7% in the prior year[174] - Gross profit for the nine months ended September 30, 2024 was $36,644, a decrease of $851 from $37,495 in the prior year, with a gross profit percentage of 40.9% compared to 37.7%[188] - Net income from continuing operations improved to $4,778 for the three months ended September 30, 2024, compared to a net loss of $8,772 in the same period of 2023, marking a turnaround of $13,550[173] - The net loss from continuing operations improved to $14,880 for the nine months ended September 30, 2024, compared to a loss of $34,823 in the prior year, primarily due to a decrease in operating expenses[187] - The company recorded a net loss of $107,589 for the nine months ended September 30, 2024, an increase of 115.1% from a loss of $50,027 in the same period of 2023[187] Operating Expenses - Operating expenses for the three months ended September 30, 2024, decreased by $9,478, or 51.5%, to $8,939, primarily due to reductions in selling and marketing expenses[172] - General and administrative expenses for the three months ended September 30, 2024 were $6,023, down 44.9% from $10,940 in the same period of 2023, primarily due to decreases in stock-based compensation and payroll expenses[182] - Selling and marketing expenses for the nine months ended September 30, 2024, were $10,326, a decrease of 46.1% from $19,173 in the same period of 2023[194] - General and administrative expenses for the nine months ended September 30, 2024, totaled $24,790, down 30.2% from $35,516 in the prior year[195] - Total selling and marketing costs decreased primarily due to a reduction in payroll and employee benefits costs of $4,380 due to restructuring activities[194] Cash Flow and Working Capital - As of September 30, 2024, the working capital deficit was $209,596, compared to $145,622 as of December 31, 2023[166] - For the nine months ended September 30, 2024, net cash used in operating activities was $7,507, a significant decrease from $22,265 in the same period of 2023, reflecting improved cash flow management[168] - Cash, cash equivalents, and restricted cash at the end of the period were $5,773, down from $7,290 at the end of September 30, 2023[168] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $6,815, a decrease from $18,649 in the same period of 2023[170] Other Financial Metrics - RPM for the three months ended September 30, 2024, was $24.69, reflecting a 5% increase from $23.41 in the same period of 2023[155] - RPM for the nine months ended September 30, 2024, was $22.27, reflecting a 14% increase from $19.60 in the same period of 2023[155] - Monthly average pageviews for the three months ended September 30, 2024, were 301,721,996, a 22% decrease from 388,410,170 in the same period of 2023[156] - Monthly average pageviews for the nine months ended September 30, 2024, were 332,312,606, a 13% decrease from 380,578,813 in the same period of 2023[156] - Other digital revenue increased by $5,232, or 480.9%, to $6,320 for the three months ended September 30, 2024, driven by the expansion in e-commerce revenue[177] - Other digital revenue increased by $6,469 to $9,327 for the nine months ended September 30, 2024, driven by the expansion in e-commerce revenue[191] Debt and Interest - Interest expense decreased by $883, from $4,042 in the three months ended September 30, 2023 to $3,159 in the same period of 2024, reflecting a reduction in debt[185] - Interest expense for the nine months ended September 30, 2024, was $11,747, a decrease of 11.2% from $13,225 in the same period of 2023[196] Discontinued Operations - The company recorded a loss from discontinued operations of $92,709 for the nine months ended September 30, 2024[165] - The net loss from discontinued operations for the nine months ended September 30, 2024, was $92,709, compared to $15,204 in the same period of 2023[202] Accounting and Regulatory - Recent accounting pronouncements have been adopted as of the date of the report[205] - The company is classified as a "smaller reporting company" under SEC Regulation S-K, thus certain market risk disclosures are not applicable[206]