Motricity managed to land contracts with both AT&T and Verizon Wireless and saw sales grow 5 percent sequentially in its first quarter as a publicly traded company, but substantial payouts related to its initial public offering (IPO) threw the company into the red.
Motricity lost $11.6 million in its second quarter after $17.5 million in stock-based compensation for completion of the company's IPO offset an increase in sales, which rose to $30.4 million in the second quarter. The company lost just $1.5 million in the first quarter of this year on sales of $29.1 million.
CEO Ryan Wuerch emphasized the company's significant margin expansion and new contract wins, which include XL Axiata in Indonesia, Motricity's first customer in the high-growth Asia Pacific region.
Looking ahead to the third quarter of this year, Motricity expects sales to hit between $37 million and $38 million as increased use of its mobile data services and its recent contracts buoy revenue. Adjusted net income, which excludes stock-based compensation and other expenses, is expected to be in the range of $5.3 million to $6.3 million for the third quarter.
Motricity also announced it signed up U.K. quad-play giant Virgin Media for its mCore Connect social media platform, which provides one-click mobile access to social networks including Facebook, MySpace and Twitter, along with e-mail sites like Gmail, Yahoo, MSN and AOL Mail. Financial terms of the deal were not disclosed.
Motricity's shares were up slightly by 9:30 a.m. Central, rising just over 2 percent to $8.15.