Viggle Inc (NASDAQ:VGGL) Is Losing the Steam

On 11th November’14, BrilliantPennyStocks.com initiated coverage on VGGL. The stock moved up by 99.37% since the coverage was initiated.

Viggle Inc (NASDAQ:VGGL)’s bounced last Wednesday following strong earnings report for 1Q15 ended September 30, 2014. However, the results were not sufficient to hold that bounce back for long-term.

Yesterday, the stock declined nearly 7.04% and closed at $3.17. It traded with volumes of 1.3 million shares as compared to its 30-day average trading volume of 1.55 million shares.

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Viggle’s stock is currently looking down based on the daily chart, though it is trading above its 20-Day EMA of $2.78 but overall it looks like it is heading down in near term.

Key financial indicator that drove Viggle’s stock up was 49% YoY revenue growth to $6.47 million in 1Q15. The company also reported 22% QoQ revenue growth. However, strong revenue growth couldn’t save the company from reporting an operating loss of $17.45 million in 1Q15. Operating loss decreased more than 25% as compared to $23.57 million in 1Q14.

Viggle Inc (NASDAQ:VGGL) reported net loss of $17.6 million or $1.12 per basic and diluted common share. The company reported $628,000 in net cash provided by operating activities. Viggle used $243,000 net cash in investing activities during 1Q15.

The company also reported strong user growth in terms of engagement and registered users in its 1Q15. The company reported 112% YoY surge in net registered users during 1Q15, which surpassed 7 million mark. On a sequential basis, net registered users grew 32%. Viggle reported active reach at 10.3 million and total reach at 26.2 million during September 2014.

At the end of 1Q15, Viggle users checked into more than 428.5 million TV programs and 75 million songs. The company also reported more than $20 million worth of rewards redemption as at September 30, 2014. User’s time spent in the Viggle app also increased to an average of 63 minutes.

Viggle Inc (NASDAQ:VGGL)’s President and COO, Greg Consiglio, noted that strong financial and operating performance through 1Q15 marked strong start to FY15. In part, it is also attributable to the company’s recent acquisitions. The company is confident to continue this growth trend by finding innovative solutions to engage active customers and attract new users.

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