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News In Focus: TheStreet, Inc. (Nasdaq: TST)

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On Monaday, Shares of TheStreet, Inc. (Nasdaq: TST), gains 6.10% and now trading at $0.870 in the current trading session. The current trading range of the stock ranges between $0.81 and $0.87.

TheStreet, Inc. (Nasdaq: TST) a leading financial news and information company, recently stated financial results for the 1st– quarter finished March 31, 2017.

For the 1st– quarter of 2017, the Company stated revenue of $15.30 million, net loss attributable to common stockholders of $1.10 million, or ($0.030) per basic and diluted share, and an Adjusted EBITDA(1) of $0.80 million. The 1st– quarter net loss included planned restructuring and other charges related to severance, in addition to lower premium subscription revenue, partially offset by revenue development generated by our institutional business and savings from restructuring and price cutting measures implemented throughout 2016.

“The turnaround we’ve been talking about for months started to show results in the 1st– quarter,” said David Callaway, President and CEO. “Rising institutional revenue, tapering declines in user subscriptions, and renewed interest in our enhanced news coverage from advertisers, particularly in video, are reflecting our new administration team’s hard work throughout 2016.” David Callaway continued, “This is just the starting, and we look onward to showing continued development in the next three quarters.”

1st– Quarter Results:

Revenue for the 1st– quarter of 2017 was $15.30 million, a decline of $0.80 million, or 5.00%, from $16.10 million in the previous year, all related to Business-to-consumer (“B2C”) revenue decrease.

Business-to-Business Revenue:

Business-to-business (“B2B”) revenue numbering The Deal, BoardEx and RateWatch totaled $7.40 million, up $0.30 million as contrast to the 1st– quarter of 2016.  Adjusting for the exchange rate losses, B2B revenue was up 7.00% contrast to the 1st– quarter of 2016.

Strong B2B revenue growth resulted from subscription revenue growth in BoardEx and RateWatch of $0.20 million and higher event revenue of $0.10 million generated at The Deal. In addition, information services grew modestly from The Deal custom report revenue. This was partially offset by lower subscription income in The Deal during the quarter.  YOY development in revenue was partially offset by exchange rate losses at BoardEx because of the devaluation of the Pound sterling, which negatively influenced BoardEx revenue by $0.20 million. Adjusted for the negative exchange rate impact, total B2B revenue increased $0.50 million, or 7.00%.

Business-to-Consumer Revenue:

B2C revenue for the 1st– quarter of 2017 was $7.90 million, a diminish of $1.00 million, or 12.00%, from $8.90 million in the 1st– quarter of 2016

B2C subscription revenue for the 1st– quarter of 2017 was $5.10 million, a declines of $1.00 million, or 17.00%, from $6.10 million in the 1st– quarter of 2016.  This declines mainly related to a 16.00% decrease in the weighted-average number of subscriptions and a diminish of 1.00% in average revenue recognized per subscription.  Average monthly churn (2) of 4.940% throughout the 1st– quarter of 2017 enhanced 64.00 BP from 5.580% throughout the 1st– quarter of 2016. B2C Advertising revenue grew $0.10 million for the 1st– quarter of 2017 as contrast to the similar period last year, offset by lower License and Syndication revenue of the same amount between these periods.

Operating expenses for the 1st– quarter of 2017 were $16.20 million, a decrease of $3.00 million, or 16.00%, from $19.20 million for the 1st– quarter of last year.  Included in costs this year were planed severance cost of $0.20 million as contrast to severance cost recorded throughout the 1st– quarter of 2016 of $0.10 million, a $1.40 million charge related to the departure of former CEO and President, Elisabeth DeMarse, in addition to $1.20 million in accrued sales tax expenses. Apart From these one-time charges, operating costs were $16.00 million, or 3.00% better than the previous year period.  Net loss attributable to common stockholders for the 1st– quarter of 2017 was $1.10 million contrast to net loss attributable to common stockholders of $3.40 million in the previous year period. The Company stated a basic and diluted net loss per share attributable to common stockholders of ($0.030) for the 1st– quarter of 2017, contrast to net loss per share attributable to common stockholders of ($0.1) for the 1st– quarter of 2016.  Adjusted EBITDA for the 1st– quarter of 2017 was $0.80 million, a increase of $24000.00, or 3.00% contrast to the previous year period. The Increase in Adjusted EBITDA mainly resulted from the higher BoardEx and RateWatch revenues and lower costs in all categories partially offset by lower premium subscription and licensing and syndication revenues within the B2C business.

The Company finished the quarter with cash and cash equivalents, restricted cash and marketable securities of $24.60 million, up $1.20 million as contrast to $23.40 million at December 31, 2016 mainly from a decreased net loss for the period and seasonably strong 1st– quarter renewals of subscription product sales, partially offset by the timing of accrued cost payments and capital expenditures recorded throughout the period.

Conference Call Information:

TheStreet will talk about its financial results for the 1st– quarter recently at 10:30 a.m. EDT.

To participate in the call, please dial 888-503-8163 (local) or 719-457-2603 (worldwide). The conference/discussion code is 9300554. This call is being webcast and can be accessed on the investor Relations section of TheStreet website.

Analyst recommendation for this stock stands at 2.00.