Great income statement overall, but the balance sheet is only so-so. A flow ratio of 1.50 indicates that InfoSpace is somewhat lacking in the working capital management department. That's not a horrible Flowie, but it is somewhat troubling considering that metric is up from a much better 0.88 a year ago. Without that item and the associated interest receivable, the flow ratio drops to an excellent 0.80. But then again, that loan represents cash payment which a company in a stronger business position would've already pocketed.
Great companies have the market power to demand up-front payment for their goods and services.
All told, the balance sheet weakness is really the only sore thumb that stands out in this story. Oh, well, then there's the matter of valuation. Obviously, the market is already onto InfoSpace's potential. Consider, however, that even at that lofty level, the stock may actually make sense if it can become the gold standard for enabling mobile commerce. I'll pass on a prediction for that outcome, but I will keep my eye on InfoSpace's financial statements in the quarters ahead to see if the story has legs.