Here you go DanPrice (as of close of 12/13/99): $16.44
52-Week Range: $26.75 - $3.88
Dividend/Yield: nil
Market Capitalization: $896.0 million
Shares Outstanding: 54.5 million
Estimated Float (Shares): 22.8 million
Average Daily Volume (Shares): 266,638
Book Value Per Share: $2.50
LTM Sales: $5.6 million
Debt/Capital: 0.04%
ROE (LTM): nil
12-Month Price Target: $26.00
FYDec. EPS % Change P/E
1998 ($0.63) NM NM
12 Mos. ($0.73) NM NM
1999E ($0.98) NM NM
2000E ($1.25) NM NM
2001E ($0.74) NM NM
3-Year Estimate CAGR in Rev. (1998A-2001E): 327%
MessageMedia, Inc. provides permission-based e-messaging solutions that help
companies improve customer communications, strengthen customer loyalty, and
ultimately improve the lifetime value of a customer. The Company generates
revenue by offering an outsourced service solution for a subscription fee or a
packaged software solution for a one-time licensing fee. Headquartered in
Boulder, Colorado, MessageMedia has 280 employees and maintains offices in
Alabama, New York, and California.
HIGHLIGHTS AND CONSIDERATIONS
* We believe that MessageMedia, Inc. is in the right markets at the right time,
and we expect that the Company will continue to capitalize on three
macroeconomic trends:
* Internet adoption and e-mail usage are growing rapidly on a global scale.
The Internet is a relatively small but fast-growing component of the content
distribution, direct marketing, and customer relationship management (CRM)
industries.
A growing number of companies are outsourcing non-core technology.
* While MessageMedia's current customer base consists primarily of businesses
communicating with consumers, we believe there is enormous potential for the
Company to leverage its solutions in the burgeoning business-to-business (B2B)
marketplace. MessageMedia currently provides Cisco Systems (CSCO), one of the
most technically advanced B2B companies in the world, with messaging services
that allow Cisco to interact more efficiently and effectively with its network
of resellers.
* We believe that MessageMedia's relationship with SOFTBANK will provide the
Company with a long-term, sustainable advantage over many of its competitors.
We suspect that this strategic alliance has brought the Company large,
well-respected clients such as Yahoo! and E*Trade, and that it will continue to
provide global exposure to new clients as SOFTBANK expands its international
portfolio of Internet companies.
* MessageMedia has been under the radar of institutional investors and
investment banks. Because the Company is the result of a series of acquisitions
and a reverse merger instead of the typical high-profile, Internet IPO, we
believe that MessageMedia's story is generally misunderstood or not known.
* MessageMedia has solid projected revenue growth. We project that MESG will
have 4Q 1999 revenues in excess of $5 million, year 2000 revenues over $44
million, and will grow revenues at a 327% CAGR over the next three years.
* We believe that MessageMedia's management will continue to successfully build
out its product offerings through an aggressive course of acquisition. The
recent acquisitions of RevNet Systems and Decisive Technology demonstrate
MessageMedia's commitment to developing a broad suite of solutions and
transitioning into a provider of electronic online customer relationship
management (e-CRM).
* We believe e-mail is an efficient and effective way for businesses to
initiate, maintain, and enhance valuable relationships with customers. From our
perspective, it is not possible for other traditional direct marketing and
customer service modalities to compete with e-mail on cost, speed, or data
collection.
* We believe that MessageMedia possesses a compelling financial model. By
migrating high-growth customers from software packages to service solutions, the
Company should create recurring, transaction-based revenue with higher gross
margins.
* We believe that MessageMedia is using the right strategy for future business
development. By focusing internal resources on clients with the highest growth
potential, the Company should continue to discover new lines of business and
grow revenues rapidly, while improving gross margins. The benefits of this
strategy were seen in Q3 1999, when MESG's top ten accounts contributed 69% more
revenue than in Q2.
Stephens Inc. maintains a market in the common stock of MessageMedia, Inc. and
may act as principal in these transactions. |
