iTurf Reports Record Third Quarter Results
NEW YORK--(BUSINESS WIRE)--November 30, 1999--
Net Revenues up nearly 400% year over year, 80% sequentially
Non-commerce revenue up nearly 100% sequentially
Reports record traffic and unique visitors
Results Exceed Analyst Expectations
iTurf Inc. (Nasdaq:TURF - news), a leading online teen network providing Internet community, content and commerce services, today announced record revenue and sales for the third quarter and thirty-nine weeks ended October 30, 1999.
Net revenues for the third quarter increased nearly fivefold to $5.3 million from $1.1 million in the third quarter of last year. On a sequential basis, third quarter net revenues increased approximately 80% over revenue of $3.0 million for the second quarter of fiscal 1999. Gross profit for the third quarter was $2.7 million, or 50.2% of revenues, compared to $705,000, or 66.3% of revenues, in the third quarter of last year. Selling, general and administrative expenses and amortization of intangible assets totaled $10.0 million, or 188.3% of revenues, compared to $514,000, or 48.3% of revenues, a year ago. The Company reported a net loss before amortization of intangible assets for the quarter of $5.7 million, or $0.31 per share, compared to net income of $116,000, or $0.01 per share, for the comparable quarter one year ago. Net loss for the quarter, including amortization of intangible assets was $6.4 million, or $0.35 per share, compared to net income of $99,000, or $0.01 per share, a year ago.
Commenting on the results, Stephen Kahn, President and Chief Executive Officer, stated, ''We had a terrific third quarter. We achieved record revenues, traffic, and membership across the network. In addition, the infrastructure we've been developing in support of both our commerce sites and community initiatives is now in place and scaling to meet the unprecedented holiday traffic expected by the industry. We're now perfectly positioned to expand our lead as the predominant proprietary online teen network.''
Net revenue for the first three quarters of fiscal 1999 increased to $10.9 million, compared to $1.9 million reported for the first three quarters of last year. Gross profit for the first three quarters was $5.2 million, or 48.3% of revenues, compared to $1.2 million, or 61.3% of revenues in the first three quarters of last year. Selling, general and administrative expenses and amortization of intangible assets totaled $15.8 million, or 145.3% of revenues, compared to $1.1 million, or 56.4% of revenues, a year ago. The Company reported a net loss before amortization of intangible assets for the thirty-nine weeks of $7.6 million, or $0.47 per share, compared to net income of $73,000, or $0.01 per share, a year ago. Net loss for the thirty-nine weeks including amortization of intangible assets was $8.3 million, or $0.51 per share, compared to net income of $22,000, or $0.00 per share, a year ago.
Cumulative commerce customers increased 60.0% during the third quarter to approximately 144,000 from approximately 90,000 as of July 31, 1999. iTurf's traffic exceeded 92 million page views in the month of October, up from 15 million page views in October 1998. The Company also reported that the number of unique visitors to its sites in October 1999 was 1,328,000 according to Media Metrix and 1,177,121 according to Nielsen NetRatings. Additionally, iTurf now has nearly 3 million online registrations, including e-mail registrants, home page owners, and community members.
On the future of iTurf and the success of its business model, Kahn said, ''We are extremely encouraged by the progression of our business model on all fronts. Our sales momentum and network traffic have accelerated dramatically into November, the latter reaching in excess of 120 million monthly page views on a run rate basis. We've also witnessed enormous demand for our iTurf newsletter, marketed through our partnership with MSN Hotmail Web Courier Service. We have nearly 600,000 subscribers in advance of the launch of iTurf.com, scheduled for early 2000.''
iTurf Inc. is a leading network provider of online destinations focused on consumers between the ages of 10 and 24. Through its network of web sites, iTurf provides a comprehensive offering of community, content and commerce services which include: interactive magazines, proprietary content, chat rooms, posting boards, personal homepages, e-mail, and online shopping. iTurf is a subsidiary of dELiA*s Inc. (Nasdaq: DLIA - news).
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