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Theglobe.com Beats Estimates by a
Nickel on Membership Increases,
E-commerce Gains
By George Watson
Staff Reporter
10/28/99 6:58 PM ET
Theglobe.com (TGLO:Nasdaq) reported a loss late
today that was 5 cents smaller than Wall Street's
expectations, improving its performance through
membership increases and gains in e-commerce.
In after-hours trading, theglobe.com's stock fell 1/16 to
10 11/16. Shares for the company -- which set an IPO
record with an opening day gain of 606% in 1998 -- had
risen 5/16 before the normal close. The company has
created an online community of 2.7 million members
who publish their own content and interact with others
with similar interests.
Theglobe.com said its pro forma net loss, excluding
amortization of the acquisitions of an online department
store and on-line game store, totaled $7.8 million, or 29
cents a diluted share, compared with a $4.3 million loss,
or $1.80 a share, in the comparable 1998 quarter.
There was no amortization in the 1998 quarter, although
the loss excludes a non-recurring stock-based
compensation charge of $1.4 million. A consensus of
analysts polled by First Call/Thomson Financial
called for theglobe.com to lose 34 cents a share.
Revenues more than tripled to $4.9 million from $1.6
million in the year-earlier quarter.
New members in the third quarter rose 23% to 342,000
from 278,000 in the second quarter, bringing total
membership to 2.7 million.
Theglobe.com said 22% of its revenues came from
e-commerce and other sources besides advertising,
whereas only 12% came from those sources in the
second quarter.
"We're very excited about this," said Todd Krizelman, a
co-chief executive for the company based in New York
City. "We think we are very well position for the fourth
quarter."
Two new products introduced in the third quarter were
globelists.com, a network of e-mail clubs based on
interests, and uPublish, a Web site builder. To better
market the innovations, the company is planning a $27
million ad blitz in early November in New York and some
other markets |
