Earnings are OUT!!!
MessageMedia Continues Strong Growth in Fourth Quarter 1999; Revenues Increase by over 1000% from Fourth Quarter 1998; 61% over Third Quarter 1999
BOULDER, Colo.--(BUSINESS WIRE)--Feb. 9, 2000--MessageMedia Inc. (Nasdaq:MESG), a leading provider of e-mail marketing and customer relationship management solutions, today announced strong revenue growth for the fourth quarter and year ended December 31, 1999.
In the fourth quarter, MessageMedia reported revenue of $4.9 million, an increase of over 1000% from the $0.4 million reported in the fourth quarter of 1999 and a 61% increase over third quarter 1999 revenues. For the fourth quarter of 1999, net loss before amortization of goodwill was $6.4 million, or a loss per share of $0.12. Including the amortization of goodwill, MessageMedia reported a net loss of $19.4 million, or $0.36 per share, based on 53.4 million weighted average shares outstanding. These results compare to a net loss before goodwill amortization in the 1998 fourth quarter of $3.6 million, or a loss per share of $0.10. Including goodwill amortization, a net loss of $4.6 million ($0.13 per share) was reported for the fourth quarter of 1998, based on 34.7 million weighted average shares outstanding.
For the year ended December 31, 1999, MessageMedia reported revenue of $10.0 million, a 678% increase over the $1.3 million reported in the same period in 1998. For calendar year 1999, the net loss before goodwill amortization was $18.7 million ($0.40 per share), compared to a loss of $12.9 million ($0.58 per share) in calendar year 1998. Including goodwill amortization, the net loss was $46.3 million, or $1.00 per share on 46.4 million weighted average shares outstanding. These results compare to a net loss $14.0 million, or a loss per share of $0.63 in calendar year 1998, based on 22.3 million weighted average shares outstanding.
"Our strong fourth quarter revenue growth results from increased market opportunities and our focus on the delivery of a comprehensive suite of services and product solutions for companies to build their customer relationships on-line" said Larry Jones, president and CEO of MessageMedia. "E-messaging is no longer a market experiment in corporate budget -- it's a necessity in today's dynamic business environment. Today marketers are beginning to recognize that e-messaging is more than a marketing tool and can be a very cost effective customer management tool as well. Our results underscore our ability to meet these demands with an effective strategy and to dominate the e-messaging industry. Our strategy to move away from high-volume, low-CPM e-mail delivery has been clearly validated by the results we are experiencing.
"Today we are adding to our client base through our expanding sales efforts, increasing the revenue spend from our existing client base and selling additional solutions to each of our clients. The more sophisticated clients are complimenting their e-mail marketing efforts with more strategic use of e-mail. Messaging revenue from our existing client base grew 73% in the fourth quarter. Our ten largest clients increased their revenue spend significantly and showed a 78% increase from third quarter levels.
"During the quarter we signed a total of 67 contracts from both new clients and cross selling within our existing client base. The number of mailings grew 42% and the revenue per mailing was also up 42% in the fourth quarter from the third quarter of 1999.
"We are especially excited to see the business-to-business develop and particularly the addition of Cisco to our client base. Using e-messaging, these businesses can effectively communicate with their value chain and business partners, fully capitalizing on the real-time medium of e-mail. With MessageMedia's suite of e-CRM services, corporations like Cisco Systems can efficiently deliver product updates, gather intelligence about their partners via surveys, as well as provide extensive inbound e-mail handling.
"We have established partnerships with cutting-edge media companies including RadicalMail that will allow us to offer even greater CRM value. We feel very confident that we are separating ourselves from our competition by being first to market with many tailored solutions for retailers and B2B marketers," Mr. Jones said.
Jones continued, "Our plan to raise visibility on Wall Street yielded results, with Stephens Inc. and Robertson Stephens both initiating coverage of the company in recent weeks."
About MessageMedia Inc.
MessageMedia (Nasdaq:MESG) is a leading provider of e-mail-based customer relationship management and direct marketing services. The Company offers a comprehensive suite of outsource messaging services for information delivery, e-commerce services, permission-based direct marketing, ongoing customer communications and real-time customer feedback solutions using industry standard Internet protocols. MessageMedia's customer portfolio includes clients from the financial services, publishing, direct marketing, retailing, software and electronic commerce industries. Clients include E*TRADE, AOL, Apple, Yahoo!, Microsoft, GeoCities, Intuit, CMP Media, Cisco Systems, CNBC, Universal Studios and Bertelsmann.
Investors in MessageMedia include SOFTBANK and its affiliates, which constitute the world's largest investors in the Internet and Pequot Capital Management, a Connecticut-based research-intensive investment firm.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act. With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties. These risk factors include, but are not limited to, the integration of a new senior management team, MessageMedia's limited operating history, the integration of recent acquisitions, risks associated with pending and future acquisitions, the anticipated fluctuations in operating results, the uncertain acceptance of new services being offered, and undeveloped and rapidly changing market and other factors detailed in MessageMedia's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1998 and its most recent Quarterly Report on Form 10-Q. All companies and product names are trademarks of their respective owners. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. MessageMedia undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
MessageMedia Inc.
6060 Spine Road, Boulder, Colo. 80301
Phone: (303) 440-7550; Fax: (303) 440-0303
www.messagemedia.com
Investor Relations inquiries should be sent to
investor@messagemedia.com
MessageMedia, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended Year ended
December 31, December 31,
1999 1998 1999 1998
(unaudited)(unaudited)
Revenues $ 4,912 $ 443 $ 10,022 $ 1,288
Cost of revenues 2,522 53 4,589 98
Gross profit 2,390 390 5,433 1,190
--------- --------- ---------- ---------
Operating Expenses:
Marketing and sales 3,901 511 9,704 1,935
Research, development & 2,094 935 4,936 4,828
General & administrative 2,684 1,029 7,678 3,810
Depreciation 465 1,358 1,432
Amortization of Goodwill 12,971 1,039 27,566 1,039
Restructuring Charge --- --- 1,025 812
Write-off of in-process
technology --- 1,300 --- 1,300
--------- --------- ---------- ---------
Total operating expenses 22,115 5,100 52,267 15,156
Interest income, net 360 73 134
--------- --------- ---------- ---------
Net loss (19,365) (4,637) (46,269) (13,832)
Preferred stock dividend --- --- --- (153)
Net loss applicable to
common shares $ (19,365)$ (4,637)$ (46,269)$ (13,985)
========= ========= ========== =========
Net loss per share,
basic and diluted $ (0.36)$ (0.13)$ (1.00)$ (0.63)
Shares used in per
share computation,
basic and diluted 53,406 34,706 46,367 22,305
MessageMedia, Inc.
Consolidated Balance Sheets
(in thousands)
December 31, December 31,
1999 1998
Assets
Current assets:
Cash and cash equivalents $ 37,920 $ 4,659
Accounts receivable, net 4,278 681
Prepaid expenses and other 749 430
--------- ---------
Total current assets 42,947 5,770
Furniture equipment and
software, net 4,728 1,476
Patent and other costs, net 0 51
Intangibles assets, net 75,162 23,895
Deposits and other 354 29
--------- ---------
Total assets $123,191 $ 31,221
========= =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 2,482 $ 1,383
Accrued compensation and related 1,912 148
Accrued interest -- 15
Deferred revenue 324 36
Current portion, debt obligations 25 504
Other accrued liabilities 1,022 584
--------- ---------
Total current liabilities 5,765 2,670
Debt obligations 36 67
Total stockholders' equity 117,390 28,484
--------- ---------
Total liabilities and
stockholders' equity $ 123,191 $ 31,221
========= =========
CONTACT:
MessageMedia Inc.
Tork Johnson, 303/381-7500 (Chief Financial Officer)
tork@messagemedia.com
Beth Mayfield, 303/381-7500 (Corporate Affairs)
investor@messagemedia.com
or
The Ruth Group, Inc.
Stefanie King, 917/639-4110
slking@theruthgroup.com
KEYWORD: COLORADO
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