The market panic has been good news for TheStreet.com’s (TSCM) Web traffic — the company posted 27% year-over-year unique visitor growth during Q3, it said today, including an average 8 million unique visitors per month.
But the slowdown has whacked its business: The financial news site missed Q3 sales estimates, posted a surprise loss, and shook up its boardroom, naming iconic co-founder Jim Cramer as chairman. Cramer takes the chairman role from Thomas Clarke, who will remain the company’s CEO, focusing on “navigating the company through this difficult economic environment.”
“Our quarterly results reflect the revenue impact of the weakened online advertising market,” Clarke said in a statement. “While we remain committed to investing in our growth initiatives, we are reviewing our cost structure, as is prudent, in this difficult environment. Our strong balance sheet, with $80 million in cash and no bank debt, ensures we are particularly well positioned to navigate these headwinds.”
TheStreet.com posted a 4 cent per share Q3 loss on anemic $16.7 million of revenue, missing analysts’ estimates of a 4 cent per share profit on $19.2 million of sales. A year ago, the company posted a 13 cents per share profit on $16.1 million of revenue.