The Wall Street Journal’s original source article is down, or pay-gated, or a combination of the two, so here are the numbers from Forbes’ Jeff Bercovici:
Armstrong said Patch is on track to book around $40 million in advertising revenue in 2012 after taking in virtually no money last year. While that’s a big change, Patch’s costs last year totaled around $160 million.
The traffic has flat-lined and does not appear to be improving. Speculate all you want about the halted expansion into new markets…but yes, even endless content creation has a ceiling.
Today’s announcement was a small one in a story that will only get uglier from here on out.