Motricity Breaks Profitability Barrier, Strikes New Mobile Deal With Indonesia’s Fastest-Growing Carrier
Bellevue, WA-based mobile Internet service provider Motricity (Nasdaq: MOTR), passed the profitability mark yesterday, when it posted its 2010 third quarter financial results. The company, which struggled through a disappointingly low $50 million IPO in June, is reporting its first ever positive net income, in the amount of $3.3 million for the three-month period that ended September 30.
“Motricity accelerated its financial performance and leadership in the mobile data services market during the third quarter,” chief executive Ryan Wuerch said on the company’s quarterly investor call.
Motricity’s revenue from the third quarter climbed nearly $10 million over the same time last year, from $28.1 million to $37.9 million, a 35 percent increase. The company reported a net loss of $1.8 million in the same period a year ago.
The company also rolled out details yesterday on its latest partnership in its aggressive international expansion plans, with Indonesia’s fastest growing mobile operator XL Axiata. The two companies have teamed up to extend mobile Internet, mobile social networking, e-mail, carrier information, and personalized mobile content to XL Axiata’s 38.5 million subscribers.
This is the second international partnership Motricity has inked recently. Last month, the company partnered up with Reliance Communications, one of India’s largest mobile operators. The deal caused the company’s stock to soar 34 percent in one day, closing at $17.42.
“Motricity is a mobile Internet pure play, and we sit at the center of the mobile data services ecosystem, where we provide the technology and the services that enable some of the largest mobile operators and enterprises globally the ability to offer these services to their subscribers,” Wuerch said. “Our global opportunity is exceptional.”
Motricity shares closed at $21 yesterday, with a market value of $840 million. The shares have kept climbing, up to $23.785 at 2:40 pm Eastern time, establishing a market capitalization of more than $955 million.
Read more about the company’s international expansion plans in an in-depth interview I did with Wuerch last month.