DexMedia, the combination of Dex One and Supermedia, announced third quarter earnings today. The company reported $397 in quarterly revenue and a loss of $132 million. The company also said that it made $1.03 billion in the first nine months.
Print continued to see declines of just over 20% YoY. These print revenue losses are generally “par for the course” for print publishers on an almost global basis. I was struck at the ALSMA conference in Shanghai last week by the similarity of the circumstances faced by directory publishers in Asia.
Below is a snapshot of Dex Q3 and year to date results:
Here are some of the additional details and data that came out of the earnings call this morning:
- Dex Media has 2,000 sales reps and 600,000 advertisers in 43 states
- 24% of revenues come from digital
- 200,000 advertisers buying digital; the company didn’t specify how many customers were “digital only” (most are going to be print + digital bundles)
- Average annual digital spend is $2,400 to $2,500 (this isn’t average spend overall just the digital component)
- Overall advertiser renewal rates are about 80%
In the earnings slides Dex cites Thrive Analytics survey data indicating the hierarchy of marketing needs and desires among SMBs:
The top five on the list above are:
- SEO (paid search is much lower on the list)
- Social media
- Listings syndication
Much of the earnings call was pre-occupied with debt repayment questions. On the positive site Dex has only penetrated one-third of its advertiser base with digital, indicating a much larger growth opportunity. However digital growth was flat YoY. That’s partly about national advertiser defections.
If every one of Dex’s 600,000 advertisers were buying a bundle that included digital and were spending $2,400 the company would have just over $1 billion in digital revenue annually (factoring in the 80% retention rate).