LiveWorld Losses Increase in Q209
LiveWorld, a social media marketing agency, has reported US$2.3m in total revenues and a net loss of US$177,000 for the second quarter of 2009 compared to US$3.1m in total revenues and a net loss of US$138,000 for the second quarter of 2008. The lower revenues are primarily attributed to spending reductions by existing clients due to current economic conditions. These reductions were partially offset by work from new clients as well as programme expansion by select clients.
The company reported positive cash flows of US$86,000 for the second quarter of 2009, an improvement of US$247,000 compared to a cash burn of US$161,000 for the second quarter of 2008. As of 30 June 2009, the company had US$1.5m in cash and cash equivalents. Additionally, the company reported a positive working capital balance of approximately US$1.3m at the end of the second quarter as compared to US$1.2m at the end of the fourth quarter of 2008.
“We are pleased to have maintained a strong and healthy balance sheet while continuing to invest in new product development,” said David Houston, chief financial officer of LiveWorld. “We are successfully managing through the current economic downturn and believe we are well positioned for growth as the macroeconomic environment and spending for online marketing activities improves.”