TheStreet.com Q1 2007 Earnings Call Transcript

Tags: TheStreet.com, Inc., TheStreet.com, Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Richard Fetyko - Merriman Curhan Ford.

Richard Fetyko - Merriman Curhan Ford

On the subscription deal that you announced today, could you describe a little more in detail on how that’s going to impact the subscription revenues? How much of the subscription revenues will be – you mentioned 5,500 subscribers that will be impacted by this deal. If you could give us a little more detail on that.

Thomas Clarke

I’ll turn it over to Eric to give you the specifics of it, but just for clarification, it is really not a subscription deal, it is an outsourcing of the print business that we acquired when we bought the Ratings business. It is obviously not a core competency that we have in producing directories, shipping, mailing, printing and selling them, so it has been outsourced to a leading publisher who does that. Eric will give you the specifics as to what it means in terms of subscribers.

Eric Ashman

I think that the two points to make are the print directory business was approximately a $2.2 million to $2.4 million business. That now becomes outsourced and we will take a percentage of that revenue back as licensing revenue, and that will drop into the other revenue line. In addition, you will see an impact on items like deferred revenue as we pull the deferred revenue related to those subscribers off of our books, as well as bookings in future periods.

Richard Fetyko - Merriman Curhan Ford

How are the new Ratings subscription offerings doing that you’ve launched recently?

Thomas Clarke

When you say the new Ratings subscriptions, just to make sure I am answering the right question, are you talking about the one-off reports that we sell regarding a specific stock on our Ratings screener?

Richard Fetyko - Merriman Curhan Ford

Yes, that’s what I meant.

Thomas Clarke

I think it is too early to tell. I mean, we really launched it late in the first quarter so I don’t think we have a feel for it. Again, we view that really as anything we get from that would be incremental revenue due to the fact that, as you know, we provide a rating grade on any stock or an ETF or mutual fund that someone puts in for free in an advertising-supported environment. These are reports that are a little bit more detailed in nature, a five-page report. I don’t think this is a business that is going to move the needle a lot, but I think it is a business where we can pick up some additional revenue for anybody who is doing research and wants a little bit more insight into our analysis of the company.

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