XOOM.com Reports Third Quarter 1999 Financial Results
PR Newswire, Thursday, October 28, 1999 at 16:24
Revenues for Quarter Grew 37 Percent Over Second Quarter 1999
SAN FRANCISCO, Oct. 28 /PRNewswire/ -- XOOM.com, Inc. (NASDAQ:XMCM), a
leading Internet-based direct e-commerce company, today reported revenues
totaling $9.0 million for the third quarter ended September 30, 1999, an
increase of 37 percent over revenues of $6.5 million in the second quarter of
1999. Third quarter 1999 revenues represent an increase of 289 percent over
revenues of approximately $2.3 million reported in the same period of the
previous year.
XOOM.com reported a third quarter pro forma net loss of $3.0 million or
$0.15 per share. This compares to a pro forma net loss of $2.7 million or
$0.16 per share for the second quarter of 1999 and a pro forma net loss of
$2.2 million or $0.25 per share reported in the same period of the previous
year. Pro forma net loss excludes the effects of acquisition-related
amortization of intangible assets and purchased in-process research and
development charges.
Net loss including the effects of acquisition-related amortization of
intangibles and purchased in-process research and development charges for the
third quarter ended September 30, 1999 was $8.6 million or $0.44 per share.
This compares to a net loss of $6.7 million or $0.40 per share for the second
quarter of 1999 and a net loss of $3.1 million or $0.35 per share reported in
the same period of the previous year.
"During the third quarter we had several key accomplishments that we think
will have a significant impact on NBC Internet following our proposed merger,"
said Chris Kitze, Chairman of XOOM.com. "Among other things, Jack Welch was
named to NBCi's Board; we acquired a company that will provide us with a
powerful online shopping service; and we unveiled a major cable TV, Internet
shopping and e-commerce initiative with ValueVision International and
Snap.com. We are now focused on closing the merger to form NBC Internet so
that we can begin operating as a new company."
Both e-commerce revenue and advertising revenue showed strong gains in the
third quarter. The company's revenue growth was accompanied by the continued
positive growth of its membership base, which ended the third quarter at
10.3 million, up from 8.7 million members at the end of the second quarter and
up from 3.6 million members reported on September 30, 1998.
"To put our revenue growth in perspective, our year-to-date revenues
through the third quarter last year were $4.9 million," said John Harbottle,
Chief Financial Officer of XOOM.com. "This year we're at $19.9 million
through the third quarter, which marks a significant 309 percent increase."
XOOM.com is slated to be merged with several NBC Internet assets and
Snap.com, Inc., one of the fastest-growing major Internet portal, to form one
of the first publicly traded Internet companies combining these services in a
strategic relationship with a major broadcast television network. The new
company, to be called NBC Internet (NBCi), will use Snap.com as its umbrella
consumer brand, integrating broadcast, portal and e-commerce services.
Third Quarter 1999 Highlights
-- Announced nine designees to the NBCi Board, including John F. Welch,
Chairman and CEO of General Electric.
-- Made two company acquisitions. The first, LiquidMarket, will enable an
easy and fast way for consumers to shop for the products they want at prices
that are among the lowest on the Web. The second, Private One, will allow
XOOM.com to add enhanced security to its email offerings.
-- Entered into a lease agreement for over 186,000 square feet of office
space in the heart of San Francisco's financial district. The historical
building at 225 Bush Street, formerly the Standard Oil Building, will be
renamed The NBC Internet Building and will provide an ideal location for the
headquarters of the new company, which is expected to have approximately
550 employees at its inception.
-- Unveiled SnapTV, a major cable TV, Internet shopping and e-commerce
initiative between the proposed NBC Internet and ValueVision International.
ValueVision's home shopping cable television network will be re-branded SnapTV
and a companion SnapTV.com Internet shopping service will be launched together
with a wide-ranging direct e-commerce strategy.
About XOOM.com, Inc.
XOOM.com, Inc. (www.xoom.com) offers consumers high-quality, free services
over the Web, including homepage building, chat rooms, message boards, HTML
email, online greeting cards, a Web page counter, clip art and downloadable
software. XOOM.com has pioneered direct e-commerce on the Internet by
targeting its members with product and service offers relevant to their needs
and interests. To date, the company has attracted more than 10.7 million
members. XOOM.com, which was founded in September 1996, is headquartered in
San Francisco and has offices in New York City, Los Angeles and Paris, France.
NOTE: "XOOM," "XOOM.com" and the "X-in-circle" logo are trademarks of
XOOM.com, which may be registered in certain jurisdictions.
This press release contains statements that are forward-looking. These
statements are based on the Company's expectations of its future results as of
the date of this press release. Actual results may differ materially from
those projected because of a number of risks and uncertainties, including
those listed from time to time in XOOM.com's SEC reports, including but not
limited to the Company's Annual Report on Form 10-K for the year ended
December 31, 1998; the Company's Quarterly Report on Form 10-Q for the period
ended June 30, 1999; and the registration statement on form S-4 filed by NBC
Internet, Inc. Important factors that could cause the results to differ
materially from those in any such forward-looking statements include:
XOOM.com's limited operating history; unpredictability of its
quarter-to-quarter results; its unproven business model and dependence on
members; risks associated with its international operations; its reliance on a
network infrastructure; its dependence on vendors and suppliers; management of
its growth and expansion; risks associated with brand development; its
reliance on advertising revenue; intense competition with other Web
communities and businesses; the risks of infringement of intellectual property
rights; risks associated with acquisitions; and reliance on strategic
relationships.
XOOM.com, Inc.
Pro Forma Condensed Consolidated Statements of Operations (i)
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30 September 30,
1999 1998 1999 1998
Net revenue:
E-commerce $4,324 $1,532 $10,256 $3,366
Advertising 4,552 598 9,527 953
License fees and other 80 170 120 546
Total net revenue 8,956 2,300 19,903 4,865
Cost of net revenue 2,921 1,074 7,645 2,000
Gross profit 6,035 1,226 12,258 2,865
Operating expenses:
Operating and development 3,008 1,209 5,709 2,558
Sales and marketing 5,969 853 13,507 1,570
General and administrative 3,180 1,059 6,846 2,158
Amortization of deferred
compensation 90 304 494 1,111
Total operating expenses 12,247 3,425 26,556 7,397
Loss from operations (6,212) (2,199) (14,298) (4,532)
Other income (expense):
Interest income 3,205 37 6,213 37
Interest expense (25) (20) (90) (20)
Pro forma net loss $(3,032) $(2,182) $(8,175) $(4,515)
Pro forma net loss per share
- basic and diluted $(0.15) $(0.25) $(0.49) $(0.63)
Number of shares used in
pro forma per share calcuation
- basic and diluted 19,655 8,710 16,780 7,172
(i) This pro forma statement of operations information for the three and
nine months ended September 30, 1999 and 1998 is for illustrative purposes
only and is not prepared in accordance with generally accepted accounting
principles. It shows the operating results of the Company, excluding
acquisition-related amortization of intangible assets and purchased in-process
research and development charges of $5.5 million and $10.4 million for the
three and nine month periods ended September 30, 1999, respectively, and
$0.9 million and $1.9 million for the three and nine month periods ended
September 30, 1998, respectively.
XOOM.com, Inc.
GAAP Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30 September 30,
1999 1998 1999 1998
Net revenue:
E-commerce $4,324 $1,532 $10,256 $3,366
Advertising 4,552 598 9,527 953
License fees and other 80 170 120 546
Total net revenue 8,956 2,300 19,903 4,865
Cost of net revenue 2,921 1,074 7,645 2,000
Gross profit 6,035 1,226 12,258 2,865
Operating expenses:
Operating and development 3,008 1,209 5,709 2,558
Sales and marketing 5,969 853 13,507 1,570
General and administrative 3,180 1,059 6,846 2,158
Amortization of deferred
compensation 90 304 494 1,111
Purchased in-process
research & development -- 130 2,603 790
Amortization of intangible
assets 5,532 741 7,836 1,087
Total operating expenses 17,779 4,296 36,995 9,274
Loss from operations (11,744) (3,070) (24,737) (6,409)
Other income (expense):
Interest income 3,205 37 6,213 37
Interest expense (25) (20) (90) (20)
Net loss $(8,564) $(3,053) $(18,614) $(6,392)
Net loss per share
- basic and diluted $(0.44) $(0.35) $(1.11) $ (0.89)
Number of shares used
in per share calcuation
- basic and diluted 19,655 8,710 16,780 7,172
XOOM.com, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
1999 1998
ASSETS (unaudited)
Current assets:
Cash, cash equivalents & marketable securities $198,925 $56,575
Accounts receivable, net 4,032 1,368
Inventories 518 322
Other current assets 3,747 308
Total current assets 207,222 58,573
Fixed assets, net 7,643 2,071
Intangibles, net 95,537 5,517
Marketable securities and restricted cash
of $4,500 62,937 --
Other assets 15,733 713
Total assets $389,072 $66,874
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other accrued liabilities $10,301 $4,294
Notes payable, current portion 241 1,276
Deferred revenue 2,409 443
Total current liabilities 12,951 6,013
Long-term liabilities 2,836 528
Stockholders' equity:
Common stock 406,675 75,606
Deferred compensation (410) (904)
Accumulated deficit (32,980) (14,369)
Total stockholders' equity 373,285 60,333
Total liabilities and stockholders' equity $389,072 $66,874
SOURCE XOOM.com, Inc.
-0- 10/28/1999
/CONTACT: investors, Roger Maes of XOOM.com, Inc., 415-288-2568, or
roger@xoom.com/
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 139295/
/Web site: xoom.com |
