Loop Media Inc. matched Wall Street expectations on earnings but beat on revenue in the fiscal third quarter.
The Glendale short form video distributor on Tuesday reported a net loss of $7.9 million (-14 cents a share) for the quarter ending June 30, compared with a net loss of $5.7 million (-11 cents) in the same period a year earlier. Revenue decreased 47% year over year to $5.7 million.
The company attributed the drop in revenue to a material slowdown in digital advertising spend due to the macroeconomic environment.
On average, analysts expected earnings of -14 cents on revenue of $5.5 million, according to Thomson Financial Network.
Jon Niermann, chief executive of Loop Media, said that the financials beat the guidance the company put out in May.
“In addition to achieving the forecasted approximate 20% SG&A expense reduction in the June quarter compared to our March quarter, we exceeded our revenue and gross profit margin forecasts,” Niermann said in a statement.
Loop Media estimated its total revenue to be between $5.4 million and $5.6 million and its gross profit margin as a percentage of total revenue of approximately 30%. The gross margin percentage came in at 32%.
Shares in Loop Media closed up 1 cent, or a fraction of a percent, to $1.93 on the New York Stock Exchange, on a day when the Dow Jones closed down a fraction of a percent.