GoTo.com (Nasdaq: GOTO) fell 1 1/16 to 19 1/16 early Tuesday, as investors sold shares following news of better-than-expected results for the second quarter.
The Pasadena, California-based Web search firm said second-quarter revenue jumped 478 percent from a year earlier to $21.0 million. The company lost $11.2 million, or 23 cents per share before charges, compared with a loss of $7.0 million, or 20 cents, for the same period last year. Analysts were looking for a loss of 31 cents per share.
So-called “paid clicks” — successful matches of advertisers and consumers — rose to about 93 million in the latest quarter from about 31 million in the same quarter last year. Advertisers paid the company an average of 21 cents for each click, up from an average of 11 cents a year earlier.
The results were reported after the close of trading Monday. Earlier in the day, news that GoTo would provide search capabilities to AOL’s CompuServe unit sent the company’s stock up 2 3/4.
Financial terms of the agreement were not disclosed.