Ryan,
First off,
As the market matures, winners emerge and you need to look at them on a case by case basis
I have had probaly moe winners that are documented then anyone on SI long and short which are documented.
GOTO is forecast to be profitable for the rest of the year, and FWHT is already profitable and is in the middle of rapid revenue growth. You don't really believe that just because many portals such as Excite and Alta Vista are losing money fast means that the aforementioned profitable ones must be doomed as well, do you?
Since you may not understand accounting let me lend you a hand.
EBITDA- EBITDA
Also known as operating profit before depreciation, EBITDA is the operating revenue less cost of sales, operating expenses, and SG&A expenses
Earnings before interest,
taxes, depreciation and
amortization (EBITDA)
excluding Disney
settlement (1) $ 52 $(10,572) $(3,866) $(19,400)
Basic and diluted net loss
per share $(0.06) $(0.42) $(0.19) $(1.09)
Diluted EBITDA excluding
Disney settlement per
share (1) $ 0.00 $(0.22) $(0.08) $(0.42)
Weighted average shares
used to compute basic
and diluted net loss
per share 50,906 48,007 50,562 46,657
Weighted average shares
used to compute diluted
EBITDA excluding Disney
settlement per share 53,280 48,007 50,562 46,657
(1) EBITDA excludes non-recurring other income from the settlement of GoTo's trademark infringement lawsuit against The Walt Disney Company in 2000. In 2001, EBITDA includes certain non-recurring items including the loss on the closure of GoTo Shopping; the loss on the disposition of GoTo Auctions; legal costs and other expenses paid by GoTo to defend against litigation from MercExchange, which are included in general and administrative expenses; and the reimbursement of legal costs and other expenses pertaining to the MercExchange litigation, which is included in other income
GoTo reported a second quarter 2001 net loss of $2.9 million, or $0.06 per basic and diluted share. This compares to a net loss of $20.3 million, or $.42 per basic and diluted share, in the second quarter of 2000. In the first quarter of 2001, GoTo reported a net loss of $6.7 million, or $0.13 per basic and diluted share.
Cost of Revenue as a Percentage of Revenue
GoTo expects that the cost of revenue, as a percentage of revenue, will approximate 8% of revenue per quarter for the remainder of 2001 and for the 2002 fiscal year.
Traffic Acquisition Costs as a Percentage of Revenue
Third quarter 2001: 58%
Fourth quarter 2001: 56%
Full year 2002: 55%
Other Marketing, Sales and Service
Other marketing, sales and service expenses are estimated by the company to be approximately $8 million per quarter for the remainder of 2001 and approximately $39 million for full year 2002.
General and Administrative
Third quarter 2001: $9 million
Fourth quarter 2001: $10 million
Full year 2002: $45 million
Product Development
Product development costs are estimated by the company to be approximately $4 million per quarter for the remainder of 2001 and approximately $18 million for full year 2002.
Due your own Due Diligence. |
