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news.cnet.com
Go2Net revenue more than triples
By Bloomberg News
Special to CNET News.com
October 28, 1999, 5:00 p.m. PT
update SEATTLE--Go2Net, which runs an Internet financial directory and a network of Web sites, said its fiscal fourth-quarter loss widened, though revenue more than tripled.
Go2Net said its loss in the period ended September 30 was $10.7 million, or 37 cents a share, compared with a loss of $390,372, or 2 cents, in the year-earlier period. Excluding merger costs, Go2Net's pro forma earnings were $5.32 million, or 12 cents a share--more than the 6 cents a share average estimate of six analysts polled by First Call. Revenue rose to $9.78 million from $2.49 million.
Go2Net, which provides online financial data and Web services for small businesses, has bought seven smaller companies this year to broaden its product line and attract more users.
"We continue to look at favorable trends in revenue growth as well as profitability," chief executive Russell Horowitz said.
Go2Net said average daily page views in September rose to 25.8 million from 18.5 million in June. The company suffered a setback in September, though, when the size of its audience slipped to No. 12 from No. 9 in August, according to research firm Media Metrix.
Horowitz said that even with the monthly results from Media Metrix, Go2Net is seeing strong traffic and should rise again in the rankings.
Go2Net derived 38 percent of its revenue from areas other than advertising, such as subscriptions, technology licensing, and Internet retailing, through its Authorize.net payment-authorization service. The company's goal is to have more than 50 percent of sales from sources other than advertising, Horowitz said.
The company's operating margin during the quarter was 17 percent, compared with 11 percent in the third quarter. The margin will continue to rise at a slower rate, Horowitz said. Operating margin is the percentage of revenue remaining after subtracting costs of production and operating expenses.
Go2Net hired 80 new employees during the quarter and finished the period with 255 workers. It's looking to hire more than 100 additional workers before January, Horowitz said.
During the quarter, Go2Net also bought shares and warrants representing about 10 percent ownership of email software company CommTouch Software and less than 5 percent of distance education firm Click2learn.com.
"We're continuing to review those places where we can take strategic equity investments," Horowitz said.
Go2Net, about 34 percent-owned by Microsoft cofounder Paul Allen, released its results after the close of regular U.S. trading. It shares rose 1.56 to 59.13. On electronic networks and regional exchanges after the Nasdaq close, the shares rose as high as 63.13. |
