Multiplatform video software solutions provider KIT digital, Inc. has reported preliminary second quarter 2011 results that show a 108% increase in revenue to $48 million from a year ago and an increase in earnings before interest, taxes, depreciation and amortization (EBITDA) of 125% to $9.5 million for the period ended June 30, 2011.
The company, however, still expects to book a net loss for the second quarter on a GAAP basis as a result of non-cash charges.
The preliminary earnings also showed a significant growth from the first quarter of 2011, with revenue growing by 39% and EBITDA increasing 34%.
The increase in revenue was attributed to both organic growth and the contribution of newly acquired companies, with management reporting that they added more than 35 net new clients during the second quarter. Kit digital had over 2,300 customers on June 30, 2011.
"Our pace of internal growth strengthened during the second quarter," said Kaleil Isaza Tuzman, chairman and CEO of KIT digital noted in a statement. "We feel we are approaching a tipping point in our industry. The proliferation of connected devices is driving service providers around the world to reevaluate their approach to traditional broadcast and IPTV. KIT digital has continued to operate in this 'sweet spot,' leading the global transformation of traditional broadcast television to multi-screen, OTT and multi-platform solutions."
As part of the preliminary results, the company reiterated its expectation of achieving a 23% EBITDA margin for the full year of 2011, with a medium-term goal of approaching a 30% EBITDA margin over the next two years.
It also expects to be generating approximately $2.5 million in monthly free cash-flow by the end of 2011.
Kit digital will release full results on August 9.