Local.com Beats Again, Estimates Too Low
Local.com (LOCM) reported another strong quarter last week and again guided to strong growth in 2010. All in all they reported 47% revenue growth in 2009 amazing considering the economic environment and the history of LOCM failures. For Q4, they reported 8% sequential growth and generated $2.8M in cash. All of the reported numbers and guidance handily beat estimates (not that many exist). LOCM has clearly turned the corner to a fast growth, profitable company. Stock is still lagging for a lack of attention as they only had 2 analysts with estimates at that time. What's interesting now is to look towards the estimates of LOCM. In the past (talked about this on 12/8- Local.com Ups Estimate Again ), analysts were highly focused on the GAAP numbers for them. This forced them to view LOCM as a money losing company because of stock based compensation and amortization of intangibles. Contrary to that view, LOCM has been generating strong cash for the last few quarters and reported adjus...