Tomahawk, WI 10/18/2013 (BasicsMedia) – The era of Interne we find ourselves in, has created entirely new industries. An example is that of digital financial media, where one of the leading companies in this industry is TheStreet, Inc. (NASDAQ:TST) with a market cap of slightly $80.6 million. Some of its major competitors include Yahoo! Inc, Morningstar Inc, Bankrate Inc, and Time Warner Inc among others. It is one of the smallest in this industry where it provides products such as Options Profits, Chat On The Street, RealMoney Pro, RealMoney, Actions Alerts Plus, and Stocks Under 10.

How Can TST Boost Its Revenue?

The main concern where TST is concerned is how it can boost its revenues in order to stand should by shoulder with some of its erstwhile business competitors, such as those mentioned above. Its solutions are in great demand among subscribers, users and advertisers on the digital arena, but one gets the sense that the company can do more than it has done thus far. The market has become quite competitive and one cannot continue existing on yesterday’s achievements. The need for new products and constant innovation is key for success by TST and others firms.

TST recently stated that it looks forward to great results and a wonderful time in future. The only challenge is that it cannot guarantee these results. I believe that if the company’s top executives said that they can guarantee future positive performance they would have been guilty of lies. The company still operates under a lot of risks and uncertainties and it cannot claim that it is in full control of everything. When TST announced its second quarter returns for 2013, it posted revenue of not more than $13.5 million. This was an increase of 8% from similar period in 2012.

TST’s revenues have been on an increase every time the company announces its quarterly financial results. The second quarter results indicated a 7% sequential increase in its revenue. Now what it has to focus on is turning the revenue into consistent profits. This is because TST reported net loss of $1.1 million. During the same period in 2012, TST’s net loss was $1.9 million, thus indicating that the figure had reduced in 2013. We still need to appreciate that TST has not enjoyed real revenue growth since Q3 of 2011.

TST Must Spread Its Revenue Base

I believe that TST can turn this situation around. This is because it still enjoys free cash flow, which is always a good sign. Operating cash flows generated by TST amounted to $1.2 million during the second quarter of 2013. More importantly, TST ended the second quarter of 2013 with cash and investments totaling more than $59 million. This is also a good indicator of a stock with great potential going forward. TST has to find ways of reducing its debts and cutting down on costs, while investing in product development and on innovation.

Currently, 80% of TST’s revenue is derived from client subscriptions. It has not choice than to look for other sources of revenue and not be heavily dependent on a single product.

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