Transcript Module Q&A 2 - NETP 2Q CC
Questioner: U.S.Bancorp Piper Jaffray (introduced as "Hany M. Nada" but gave a different, inaudible name).
Hey guys, just a couple of quick questions! Could you talk about the Personalization Network in terms of the six customers that are using it now....concerning e-mail....what do you envisage it to be and what is the average transaction or revenue size per customer or on a quarterly basis.....what is the subscription ...every month?
Tom Donnelly, CFO: It was hard to hear you! I'll talk about the model and then, maybe Stephen can talk about the Services, themselves.
The model is a set-up fee typically in the $10-20K ranges that can also include some Consulting Services if the customer needs help in getting their data organised. And then there's a monthly fee for each of the four Services. I'll just state the average list price is around five grand for Services. And the model is, they sign up for a six or twelve-month period - typically for one Service - and then our goal is to cross-sell multiple Services to where we could get to the.....be collecting, you know, $15-20,000 a month for the existing Services in the Network.
Does it depend on the size of the customer, in terms of number of users, number of databases and so on?
Tom Donnelly: Yeah. I'll eh.....for the Intelligence Channel, its the size of the database, OK? So there's a cap on how many Gygs of data they can download and how much historical data. For the actual Recommendation...for the Collaborative Filtering fee, we're going for the.....to be again scaled on the number of e-mails. And for the Acquisition, I believe its based on the number of impressions from Angara - our partner in that channel.
Can you also talk about....you mention the dot-coms and kinda....your weaker dot coms fade away...can you talk about how...what did you guys do during the quarter when you saw....did you replace those dot.coms with, you know, bigger customers that ...were in the pipeline?
Tom Donnelly, CFO: Well as I said in the past, our focus has been on the larger deals, and historically, that was an unpopular positioning. But we've always been focussed on the multi-channel retailer, you know. Some of the dot.coms are going down. I do think, though, because our value proposition is driving revenue and driving margins, and because the domain expertise we have in running, you know, B2C businesses, that this shake-out may help us long-term because dot.coms are going to be looking for ways to understand their business better financially, you know, ultimately, to make money, so....
Great thanks!
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Note:
Having a transcript of the CC in our archives would be useful. From time to time, I will transcribe a module until the whole CC is available in one document. If anybody would like to check my transcipt against the audio on http:///www.netperceptions.com (go to "Investors - Audio Archives") I would welcome corrections. Also, if anybody would like to contribute a module, please do. |
