1. How Much Does Reach Local Charge?
United States Securities and Exchange Commision - ReachLocal, Inc. Financial Information
Three Months Ended Nine Months Ended
September 30th, 2011 September 30th, 2011
(In Thousands) 2011 2010 2011 2010
Revenue $98,629.00 $77,121.00 $275,439.00 $211,109.00
Cost of Revenue (1) $50,265.00 $42,172.00 $141,363.00 $115,458.00
Net of stock based on compensaition ($254.00) ($627.00)
Minimum Possible $ Taken From Ad Spend $48,110.00 $134,076.00
Percent of Ad Spend Taken From Ad Budget 50.96% 51.32%
ReachLocal, Inc. Disclosure states the following:
Cost of revenue includes salaries, benefits, bonuses and stock-based compensation for the related staff, including the cost of Web Presence
Professionals who are the principal service providers for the Company's ReachCast product, and allocated overhead such as depreciation
expense, rent and utilities, as well as an allocable portion of our technical operations costs. Cost of Revenue also includes the amortization
and impairment charges on certain acquired intangible assets.
•This information was taken from the United States Securities and Exchange
Comission. Go here to read more:
Official •http://sec.gov/Archives/edgar/data/1297336/000143774911008090/reachlocal_10q -093011.htm
Information
•What this means to you is that for every $100 you spend on your Google Campaign
Budget, ReachLocal takes $50.96.
•In addition to Google, ReachLocal pays Pay-Per-Click staff & Allocated overhead as
What This part of the "cost of revenue." Therefore, the actual Net Spend with Google is lower.
Means To You