Answers Corporation Q3 2009 Earnings Call Transcript

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2009-11-04 06:58:06.0

Tags: Revenue, Google Inc., Call Transcript, Earnings, Wiki RPM, Wiki, Operational Accounting, Online Communications, Finance, Seeking Alpha, Answers Corp.

Question-and-Answer Session

Operator

(Operator instructions) Our first question comes from Wayne Chang of Canaccord Adams.

Wayne Chang Canaccord Adams

Hi good morning guys. Thanks for taking the question.

Bob Rosenschein

Hi, Wayne. Good morning.

Wayne Chang Canaccord Adams

Hi good morning. A quick question just around Wiki RPM; seems like it fell about 15% year-over-year. Can you give me a little bit of insight as to whether you're seeing that trend kind of finding out at least into the fourth quarter, what we seeing so far in October? Can you talk a little bit more about the potential impact, I don't know if that's something that you have internally quantified around the notification that Google provided around sending over QA traffic. What percentage of that represents – any percentage, any figures that we could walk away with just to get a better understanding. Thanks.

Bruce Smith

Sure, Wayne. This is Bruce. On the RPM front, what we've seen is stabilization, as Bob said. RPMs are down approximately 15% on WikiAnswers. If you’ve noticed, last year we actually had an uptick to over $7 in the fourth quarter on WikiAnswers. We are not seeing this improvement on WikiAnswers and ReferenceAnswers that we are reading about in the press. So we are being very conservative in our forecasting and actually assuming that we are not going to see that. That's what's driving a lot of our forecasts. As we are not seeing it, we want to be prudent and not expect that we are going to get it. So, if it does improve it would be a positive for us, but we are just not seeing it.

Bob Rosenschein

I will answer the part, Wayne, about the Google definition link. The very simple fact is that we had this windfall in links, by the way that is only when exactly monetizes the same way as a normal page, but we show a slightly different experience to those features. But in general, I would say, if you ask me a couple years ago, that will be a massive proposition of our business. Fortunately, I would say, over the years it became less and less of an issue, as I mentioned before, totals about 5%. So it’s not even that material anymore. So we enjoy doing it and we thank our partners at Google for the faith they put in us. It’s more a prestigious thing, but it is not a massive part of the business. The way we model it is we take the revenue and do a rough estimate if it happens, when we think it might happen then it will be this much in follow on traffic and revenue.

 

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