In its second-largest acquisition, Amazon buys the company for $970 million.
The Knot ended the first quarter with a healthy increase in web sales. Web sales grew by 13% while total sales and registry revenue declined by 0.4% and 3.4%, respectively.
The Knot Inc. ended the first quarter with a healthy increase in web sales.
For the quarter ended March 31, e-commerce sales for The Knot, No. 345 in the Internet Retailer Top 500 Guide, increased by 13% to $5.2 million from $4.6 million in the first quarter of 2008. The web accounted for 22% of total sales in the first quarter, which decreased year over year 0.4% to $23.7 million from $23.8 million. “The wedding supplies business had its best first quarter performance in company history,” The Knot says. “Improved merchandising, new and redesigned products, and a recent surge in membership all contributed to revenue.”
While The Knot’s e-commerce channel posted positive results, online sponsorship and advertising in the first quarter decreased 0.8% to $12.8 million from $12.9 million in Q1 2008 while publishing revenue declined 11.1% year over year to $4 million from $4.5 million. Revenue for the company’s registry business declined by 3.4% to $1.71 million in the first quarter from $1.77 million in Q1 of 2008. The Knot posted a net loss of $1.3 million in the first quarter compared with net income of $579,000 in the previous year’s first quarter.
“The first quarter was a challenging operating environment,” says CEO David Liu. “We continue to focus on execution with an eye toward growth in 2010 and beyond.”