SNOWBIRD, Utah --Chase H&Q plaNET.wall.street conference
Pathological Presenting
"This is the first time I've spoken at a conference where I've
been upstaged by avalanches," said the slick Doug Hickey,
CEO of San Francisco-based Critical Path (CPTH:Nasdaq -
news - boards). Though it may have been without explosions,
Hickey's presentation was attention grabbing.
Critical Path does "messaging." That's more than email; it is
the rapidly growing slew of nonvoice products that put people
in touch. Critical Path offers companies email, calendaring,
digital delivery guarantees, receipts, IP-based faxes --
everything but the singing telegram.
Corporate America is experiencing growing pains with email
messaging stuff. "We keep kidding by saying that this looks
like the national debt," said Hickey. "There are currently 1.4
trillion emails sent annually and that's on its way to 4 trillion
by 2002, according to [the research firm] IDC."
The name of the game for Critical Path is to capture
mailboxes, and then "up-sell" an increasing variety of
products to each customer. The mailbox numbers unveiled
today were remarkable.
You've Got Mailboxes
Critical Paths has seen dramatic growth in mailboxes.
<<Chart>>
Source: Critical Path, Q1 00 estimate from Chase H&Q
Funding this rapid growth, said Hickey, will not come at the
expense of near-term profitability. "We'll achieve
fourth-quarter profitability," he said, "and at the same time
achieve explosive revenue growth."
Hickey also talked for the first time about a new deal with
AT&T (T:NYSE - news - boards). "We will provide
calendaring and guaranteed delivery for all of AT&T's
customers," said Hickey. "This is a multiyear deal. We
believe that you need to offer your customers a full envelope
of services, so this is a foot in the door." Hickey admits,
however, that AT&T is already using an internally developed
system for email.
H&Q, which is advising Critical Path in a deal with a
company called DocSpace, is brimming with Critical Path
fans. "On this one," said one H&Q banker, "back up the
truck."
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