ROCKVILLE, Md., Nov. 10, 2011 /PRNewswire/ -- EDGAR® Online, Inc. EDGR, a leading global provider of XBRL (eXtensible Business Reporting Language) data, software and services, today announced unaudited financial results for the third quarter of 2011 and the nine months ended September 30, 2011.

Highlights include:

XBRL filings revenues of $ 4.0 million, representing growth of 102 percent over the third quarter of 2010

Processing of 874 XBRL SEC filings in the quarter

Data and subscriptions revenues consistent with prior quarter results

Total revenues were $7.6 million for the quarter ended September 30, 2011 compared to $5.2 million for the quarter ended September 30, 2010. For the nine months ended September 30, 2011, total revenues were $20.1 million compared to $14.5 million for the corresponding period in 2010. Adjusted EBITDA was a loss of ($1.0 million) for the quarter ended September 30, 2011 compared to ($0.9 million) for the quarter ended September 30, 2010. For the nine months ended September 30, 2011, adjusted EBITDA was a loss of ($4.5 million) compared to ($2.1 million) for the corresponding period in 2010.

XBRL filings revenues were $4.0 million for the quarter ended September 30, 2011, a 102 percent increase from the same quarter last year and a 57 percent increase from the prior quarter. For the nine months ended September 30, 2011 XBRL filings revenues were $8.9 million, which is a 91 percent increase over the corresponding period in 2010. Revenues from data and solutions were $1.9 million and $5.6 million, respectively, for the quarter and nine months ended September 30, 2011, consistent with revenues from the quarter and nine months ended September 30, 2010. Revenues from subscriptions were $1.2 million and $3.8 million respectively, for the quarter and nine months ended September 30, 2011, representing decreases of 6 percent and 10 percent, respectively, from the quarter and nine months ended September 30, 2010

"For a third straight quarter, EDGAR Online achieved record total revenues reflecting continued momentum in the filings business as all US public companies are now required to file or furnish XBRL financial statements," said Robert J. Farrell, EDGAR Online president and CEO. "Our dedicated employees and partners have facilitated a strong revenue performance and continue to deliver high quality products and services to our clients."

Operating loss was ($2.7 million) for the quarter ended September 30, 2011 compared to ($1.7 million) for the same quarter last year. This change was primarily attributable to the continued expansion of infrastructure and software development required to position the Company for future growth in the XBRL filings and data markets.

Deferred revenues were $4.8 million at September 30, 2011 compared to $4.5 million at December 31, 2010. Deferred revenues represent amounts billed to customers that will be recognized as revenue in future quarters as the Company's offerings are utilized. During the quarter ended September 30, 2011, the Company capitalized $0.2 million of costs for the development of internal software related to the XBRL filings business, which are included in property and equipment.

At September 30, 2011, cash, cash equivalents and short-term investments totaled $6.9 million compared to $11.0 million at December 31, 2010.

 KEY FINANCIAL METRICS

(In thousands)

Three Months Ended

September 30,

(unaudited) Nine Months Ended

September 30,

(unaudited)    

                        2010                  2011                  2010                  2011             

      Revenue:                                                                         

      XBRL filings       $     1,959           $     3,956           $     4,642           $     8,872     

      XBRL software                 —               570             —               1,843     

      Data and solutions             1,892                 1,887                 5,703                 5,643     

      Subscriptions             1,307                 1,226                 4,199                 3,769     

      Total Revenues            $     5,158           $     7,639           $     14,544         $     20,127   

      Cost of revenues          $     (2,244)         $     (3,459)         $     (5,706)         $     (9,297)   

      Operating expenses            (4,613)               (6,851)               (12,661)             (19,877) 

      Interest, net               (65)            (71)            (221)                 (154)     

      Net loss              (1,764)               (2,742)               (4,044)               (9,201)   

      Interest, net               65               71               221             154 

      Operating loss            (1,699)               (2,671)               (3,823)               (9,047)   

      Severance costs                 211             341             438             341 

      Stock compensation                  284             687             664             2,725     

      Capitalized software development            (512)                 (189)                 (1,597)               (1,077)   

      Depreciation and amortization                 801             792             2,189                 2,519     

      Adjusted EBITDA       $     (915)           $     (1,040)         $     (2,129)         $     (4,539)   

In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding adjusted EBITDA. EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation and amortization. As the Company defines it, adjusted EBITDA also excludes severance costs and the non-cash charge for stock compensation expense and includes capitalized software development costs incurred during the period. As required by the SEC, the Company provides the above reconciliation to net income (loss), which is the most directly comparable GAAP financial measure. The Company presents adjusted EBITDA as it is a common alternative measure of performance that is used by management as well as investors when analyzing the operating performance of the Company by excluding certain non-cash expenses, such as stock compensation expense, as well as non-operating items that are not indicative of its core operating results. Furthermore, this non-GAAP financial measure is one of the primary indicators management uses for planning and forecasting future periods.  Since adjusted EBITDA is a non-GAAP financial measure, it should not be considered in isolation or as a substitute for net income (loss) or any other GAAP measure. Because not all companies calculate adjusted EBITDA in the same manner, the Company's definition of adjusted EBITDA might not be consistent with that of other companies.

Business Outlook

Based upon the dynamics and anticipated market growth for XBRL related products and services,  EDGAR Online continues to target annual revenue growth in excess of 25 percent over the next three years. Despite the anticipated revenue growth, our operations continue to be cash flow negative and as such our existing capital resources may not be sufficient for funding working capital, capital expenditures and debt obligations for the next 12 months.  We intend to implement certain operational measures, including operating expense reductions, the launch of a new, higher margin software product and initiatives to drive higher margins from our XBRL filings business in order to preserve cash and move our operations to become cash flow positive.

Conference Call

EDGAR Online will hold its quarterly conference call to review results for the quarter ended September 30, 2011 on Thursday November 10, 2011, at 8:00 a.m. EST. Robert Farrell, president and CEO, and David Price, CFO and COO, will host the call. To participate, please call (877) 407-9205 (toll-free for domestic callers), or (201) 689-8054 (international callers). The call will also be broadcast simultaneously over the Internet at: The teleconference replay will be available for approximately three months beginning at 7:00 p.m. EST on November 10, 2011 by calling (877) 660-6853 (domestic) or (201) 612-7415. The account number is 286 and the conference ID is 382125.