ReachLocal beat analyst expectations in the fourth quarter on Friday by significantly trimming its losses over the past year.
The Woodland Hills Internet marketing company reported a net loss of $2.5 million (-9 cents a share) for the fourth quarter, compared to a net loss of $17.5 million (-61 cents) for the same quarter a year ago. Revenue fell 18.4 percent to $89 million.
Analysts on average expected a loss of 37 cents a share on revenue of $90 million, according to Thomson Financial Network.
“While our return to revenue growth is taking longer than expected, we saw improved productivity metrics from our sales force, our subscription revenue is growing and we believe our web partner program will drive further adoption of our ReachEdge marketing automation software,” Chief Executive Sharon Rowlands said in a statement.
ReachLocal announced results late Thursday after market close. Shares closed Friday up 8 cents or 4.4 percent to $1.90 on the Nasdaq.