KIT digital Reports Record Q3 2011 Results

Revenue Up 124% Y-o-Y and 29% Sequentially to $62.3 Million and Op. EBITDA Up 223% Y-o-Y and 49% Sequentially to $14.3 Million, Delivering Net Income of $4.8 Million or $0.11 per Share

Q3 2011 & Outlook Highlights

• Revenue up 29% sequentially to record $62.3 million and up 124% over Q3 2010;
• On an organic basis, revenue was up 11% sequentially (off of pro forma Q2 revenues of approximately $56 million), implying an annualized organic growth pace of over 40%;
• GAAP net income totaled $4.8 million or $0.11 per basic and diluted share, compared to net losses in all comparable periods;
• Operating EBITDA up 49% sequentially to record $14.3 million and up 223% over Q3 2010;
• Integration expenses from previous acquisitions totaled $2.6 million during Q3, with no such expenses expected for Q4;
• Added more than 30 net new clients during the quarter, with over $35,000 per month in average revenue;
• Q4 2011 guidance of at least $67 million in revenue and $17.5 million in EBITDA;
• Reaffirmation of revenue guidance of at least $300 million in 2012, with a "positive bias;" projected to reach EBITDA margin in the vicinity of 30% by the end of 2012;
• Non-GAAP adjusted EPS guidance of at least $0.33 per basic share in Q4 2011 and at least $1.45 per basic share in FY 2012.

Q3 2011 Financial Results
Revenue in the third quarter of 2011 increased 29% sequentially to a record $62.3 million from $48.2 million in the previous quarter, and increased 124% from $27.7 million in the same quarter a year ago. Excluding the effect of acquired companies during the comparable periods, the company estimates organic growth in Q3 was 11% sequentially and over 35% versus the same year-ago quarter.