) posted operating loss of 21 cents per share in the fourth quarter
of fiscal 2014, ending Mar 31, much wider than the Zacks Consensus
Estimate of a loss of 5 cents. However, the reported loss was a
couple of cents narrower than 23 cents loss per share incurred in
the year-ago quarter attributable to an improvement in top line.
Including non-recurring items, Rentrak reported loss per share of
17 cents in the quarter, in line with year-ago results.
Behind the Headlines
Revenues for the quarter improved nearly 40% year over year to
$21.6 million, on the back of a 94% surge in the TV Everywhere
business. The company surpassed revenue growth expectations
in most of its lines of business. However, the top line marginally
missed the Zacks Consensus Estimate of $22 million.
Though cost of revenue increased 20%, a higher magnitude of revenue
increase drove gross margin by 300 basis points.
Operating expenses in the reported quarter flared up 42% year over
year to $17.1 million due to higher contingent consideration for
the iTVX acquisition last year, increase in headcount and higher
operating costs to support revenue growth.
Adjusted EBITDA of $1.9 million jumped from $0.13 million in the
For fiscal 2014, Rentrak incurred a loss of 59 cents per share,
much narrower than the loss of $2.10 per share incurred in fiscal
Revenues improved 33% year over year to $75.6 million in fiscal
Rentrak exited fiscal 2014 with cash and cash equivalents of $5.1
million, up 33% over fiscal 2013 end.
Total asset increased 13% year over year to $81.3 million at Mar
Stockholders' equity was $52.2 million on Mar 31, up 8.7% year over
Cash inflow from operations in fiscal 2014 was $6.3 million,
comparing favorably with cash outflow of $1.6 million in the prior
Rentrak envisions 80% annual growth in its TV Everywhere business
revenues, 12% annual growth in Movies Everywhere business revenues
and 20% annual growth in its OnDemand Everywhere revenues over the
long term that combined will continue to fuel overall revenue
growth. However, the company estimates a 5% annual decline in its
Other services revenues.
Zacks Rank and Other Players
Rentrak presently carries a Zacks Rank #5 (Strong Sell). Among the
better-ranked business service providers,
Avis Budget Group, Inc
) beat their respective Zacks Consensus Estimate in their last
reported quarter. All these stocks carry a Zacks Rank #2 (Buy).
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