GoTo.com Reports Fourth Quarter and Fiscal Year 1999 Earnings
Revenue Grows 58% over Third Quarter Results; Company Plans to Expand Internationally
PASADENA, Calif.--(BUSINESS WIRE)--Feb. 14, 2000-- GoTo.com, Inc. (NASDAQ: GOTO - news) today announced financial results for the quarter and fiscal year ended December 31, 1999. GoTo reported fourth quarter revenue of $13.3 million, a $4.9 million increase over revenue of $8.4 million for the quarter ended September 30, 1999. The company's net loss for the fourth quarter of $7.2 million represented a pro forma basic and diluted net loss per share of $0.17, compared with a pro forma basic and diluted net loss per share of $0.18 in the previous quarter. GoTo.com had a pro forma basic and diluted net loss per share of $0.24 in the fourth quarter of 1998.
Operating loss for the fourth quarter of 1999 was $8.9 million, compared with an operating loss of $9.2 million in the previous quarter and $6.4 million for the fourth quarter of 1998.
The company's total 1999 revenue was $26.8 million compared to $822,000 for 1998. The company's net loss for 1999 was $29.3 million, which represented a pro forma basic and diluted net loss per share of $0.77, compared with a 1998 net loss of $14.0 million or pro forma basic and diluted net loss per share of $0.75.
``We are pleased with our strong fourth quarter results, as they cap a remarkable and successful year,' commented Ted Meisel, CEO of GoTo. ``We believe that our financial success validates our unique business model, and demonstrates the success of our consumer promise - we put great search, and the best results, right smack in front of you, wherever you are.'
Revenue Jump Fueled by Growth in Key Metrics
GoTo.com operates an online marketplace that introduces consumers and advertisers. Paid introductions, or paid clicks, represent the successful match of a consumer need with an advertiser offering. Paid clicks increased in the fourth quarter of 1999 to over 73 million, up from over 54 million in the third quarter of 1999. Advertisers paid GoTo an average of $0.17 for each of these introductions during the quarter ended December 31, 1999, up from $0.14 in the third quarter of 1999.
At the end of December 1999, GoTo had more than 21,000 advertisers, up from 16,000 at the end of September 1999. GoTo estimates its audience reach to be more than 15 million unique visitors, which encompasses GoTo's home site as well as its extensive affiliate network.
Quarter Marked Expansion in the GoTo.com Marketplace
GoTo.com announced a significant step in the fourth quarter to expand its marketplace beyond its existing search offering. The acquisition of Cadabra Inc., would allow GoTo to combine Web search and product search into a single, integrated user experience. Cadabra's comparison shopping tool will enhance the GoTo marketplace by facilitating more targeted, high-value introductions between consumers and advertisers/merchants, a benefit to consumers, advertisers, and affiliates.
In addition, GoTo.com intends to expand internationally. GoTo currently plans to open its first overseas office in the United Kingdom later this year, and expects to build its U.K. presence by hiring a managing director and a local marketing and sales force. GoTo.com chose to kick off its global expansion in the U.K. to address the large opportunity offered by the U.K. market, which currently ranks only behind the United States and Japan in terms of number of Internet users. After its launch in the U.K., GoTo plans to open additional offices in Europe.
About GoTo.com
GoTo.com (NASDAQ: GOTO - news) operates an online marketplace that introduces consumers and advertisers. Consumers conduct searches using the GoTo.com search service at its Web site and through its affiliate partners, at thousands of locations across the Internet. Advertisers bid in an ongoing auction for priority placement in the search results with the highest bidder's site appearing first in the results. Each advertiser pays GoTo.com the amount of its bid whenever a consumer clicks on an advertiser's listing in the search results. This dynamic, together with GoTo.com's streamlined search method, improves a consumer's ability to quickly and easily find relevant Web sites providing products, services and information. GoTo.com is located in Pasadena and can be found online at goto.com.
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Certain statements in this news release constitute ``forward-looking statements.' These forward-looking statements are inherently uncertain. Actual results may differ materially from these forward-looking statements due to risks such as: the risk that certain of the company's key performance metrics, including the number of paid clicks, average revenue per introduction, overall traffic to the site, and number of advertisers, might not continue to increase at historical rates; the risk of scaling operating infrastructure to support the GoTo.com service; the risk of integrating Cadabra Inc., or the risk of expanding internationally. For a discussion of some of the other risks and factors that could affect GoTo.com's future results, see the discussion of ``Risks That Could Affect Our Financial Condition and Results of Operations' in its September 30, 1999 10Q. ...
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Expected was a $.40 loss! The future looks bright! Revenue growth is strong! Hope Wall Street pays attention! Especially with their expansion plans and the integration of Cadabra... |
