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ExactTarget loss widens as revenue grows

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ExactTarget took an $11.6 million loss in the first quarter, more than double the $4.7 million loss it took in the same period a year ago, the company announced Thursday.

The company's stock prices sank Friday morning in the wake of the announcement.

The Indianapolis-based digital marketer reported revenue of $88.9 million, a 39-percent increase over the previous year's period, but continued to pour funding into its growth.

“Our first quarter revenue growth was outstanding ... making us one of the fastest-growing software-as-service companies in the world,” Chairman and CEO Scott Dorsey said in a prepared statement.

But operating costs tied to the company’s growth have consistently eaten up profits.

After accounting for $32.2 million in revenue costs, ExactTarget spent almost as much as its sales gain, $23.7 million, on research and development, sales and marketing, and general and administrative expenses, pushing earnings into the red.

ExactTarget stock has hovered in the low-20-dollar range since the company’s March 2012 initial public offering. Shares closed a $21.97 Thursday, but fell by 9 percent Friday morning, to $20.03.

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  • Bullseye!
    Take a look at ETs website and tell me what this company does. It can't be done. This is an old, old story. ET exists to be sold. There's no long term future in peddling what they peddle, and there's very little innovative about what they do. HootSuite will automate your marketing. If we weren't in an innovation wasteland, ET wouldn't even be newsworthy.

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