Exclusive: RetailMeNot's CFO Talks Desktop Usage, Brexit Impact
RetailMeNot Inc (NASDAQ: SALE) operates a mobile and digital destination that connects consumers with retailers, restaurants and brands. The company's platform also allows the opportunity for users to search for, discover and redeem compelling offers and coupons.
Earlier this week, the company reported Q2 EPS of $0.10 vs. $0.04 estimates, on revenue of $64.2 million vs. $62.9 million estimates.
Benzinga recently had the opportunity to chat with RetailMeNot's Chief Financial Officer Scott Di Valerio.
RetailMeNot reported in its second-quarter results a decline of 13 percent in its desktop transactions compared to a year ago. Di Valerio pointed out that the company's desktop business has actually been in decline "for a bit of time now," and a lot of the decline is attributed to a change in search algorithms among large search engines.
The executive said that the company is active in making up losses in desktop transactions by working more closely with stores to drive app and mobile transactions. After all, he added that mobile and app usage has been a general trend as of late.
In the meantime, Di Valerio pointed out that the company's management team managed to slow down the rate of decline in desktop. Among the traffic that did come in through desktop, the company "did a nice job on conversion" and "generated good revenue." In fact, the company exceeded its own expectations from a revenue perspective.
Impact Of Brexit
RetailMeNot operates outside of the U.S. market, and the UK and France are its two biggest international segments.
Naturally, the outcome of the "Brexit" vote in the United Kingdom has many investors worried as the country's economic outlook is now clouded with uncertainty.
However, Di Valerio isn't particularly worried — at least not yet. He said that the company hasn't "seen any significant impact" from Brexit on its U.K. business, which actually had a great quarter.
There are nevertheless "some currency headwinds" when shifting European and U.K. currencies into U.S. dollars, but from an overall perspective the company is "seeing good things continuing over in Europe."
"So far, so good," he added.
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