Several years ago, Bankrate Inc. (NASDAQ: RATE) was benefiting nicely from the mortgage boom. But, investors were skeptical -- could this last?
Well, Bankrate was smart to diversity its offerings, such as into credit cards and insurance. And it's working.
In Bankrate's Q3 report, revenues spiked 77% to $44 million (a record for the company). Net income was $6 million or $0.32 per share. Moreover, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) came to $16 million, a 39% increase over the past year.
With the volatility in the financial markets, Bankrate got a nice boost from users looking for guidance. In fact, Q3 page views increased 11% to 160.1 million. No doubt, Bankrate certainly understands how to monetize such traffic.
Finally, with its cash flows, Bankrate has sought out cost-effective acquisitions. For example, in Q3 the company closed deals for Bankaholic and CreditCardGuide.com.
Going forward, Bankrate sees annual revenues of $164 million go $169 million, with adjusted EBITDA of $54 million to $58 million.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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