San Luis Obispo’s Mindbody beats estimates but shares still down
San Luis Obispo-based Mindbody beat analyst estimates when it released second quarter earnings on Aug. 4, but shares still ended down for a ninth consecutive day.
Mindbody lost 21 cents per share, but analysts had predicted losses of 31 cents per share.
Mindbody’s surprising earnings are a rare recent bright spot for the company since its initial public offering on June 19. Still, the losses it reported on Aug. 4 continue a long history of losses by the company.
Revenues were up 49 percent for Mindbody in the second quarter, from $16.5 million last year to $24.7 million this year. Subscriptions were also up 50 percent during the second quarter.
Gross profits also rose from about $9.5 million last year to about $15.9 million this year.
Still, Mindbody lost $8.85 million this quarter after figuring in $24.5 million in operating expenses, which is a much larger loss than the $5.5 million it lost during the same quarter last year. Mindbody also lost $7.9 million during the first quarter of this year.
Mindbody also increased the amount it spends on research and development from $7 million during the second quarter last year to about $11.8 million this year.
Shares were up from $9.21 at the close of trading to $9.86 in afterhours trading as of 2:09 p.m. PST.