From the Y Board.
From Briefing
Go2Net (GNET) 56 3/8 +1 1/8: There is a stigma that has been attached to many of the Internet stocks these days as the market is placing a newfound emphasis on the need to be profitable. In certain cases, some exceptions have been made provided an Internet company has demonstrated it is well on its way to profitability, but for Go2Net, one of the Internet's leading networks, no exception is needed. For the sixth, consecutive quarter, Go2Net has turned a profit, excluding non-recurring items, surpassing estimates for its second fiscal quarter by 80% in reporting pro-forma net income of $8.31 million, or $0.18 per share. That compares to pro-forma net income of $1.14 million, or $0.03 per share in the year-ago period. Year-over-year revenue growth was nearly as impressive, up 333% to $18.74 million-- a 34% sequential improvement. In fact, Go2Net's revenue, profits, commerce transactions, and number of users served were all at record levels, underscoring the effectiveness of a business model that benefits from advertising, licensing, subscription, and transaction fees from its sites and focuses on the key categories of consumer services, business services, and enabling services. The average daily page view traffic on the Go2Net Network grew to an average of 34.9 million page views per day in March 2000 versus an average of 12.6 million page views per day in March 1999-- impressive growth that certainly hits home with advertisers. What is likely to hit home with investors is that Go2Net has been enhancing its sales and profitability, and in its most recent quarter, was able to do so without making any acquisitions. That said, the company has said that it will continue to be aggressive in its strategic activity. Unlike many of its Internet brethren, it can afford to do so, having ended the quarter with $244 million in cash and short-term investments. Moreover, its stock still has intrinsic value as a currency for acquisitions. GNET is expected to earn $0.51 per share in FY00, and $0.61 per share in FY01. Granted, the profits aren't all that big at this juncture, but GNET's potential is with a projected 5-yr growth rate of 65.7%. The fact that GNET has shown that it is living up to its potential should place it among the winning standouts in the Internet shake-out.-- PJO |
