Es..here's my clip w.. emphasis...Regarding release
btw....when is the quiet period over?
ztect
marketwatch.newsalert.com
MarketWatch.com, Inc. Reports Fourth Quarter and Full Year 1998 Financial Results
Business Wire - February 10, 1999 17:45
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 10, 1999--MarketWatch.com, Inc.
(Nasdaq: MKTW) today reported revenues of $2.5 million for the fourth
quarter of 1998 and $7.0 million for the year ended December 31, 1998.
Revenues increased 41% from the third quarter. Net losses were
$4.2 million, or $0.47 per share, for the fourth quarter and $12.4
million, or $1.38 per share, for 1998. A significant portion of the
reported losses were attributable to non-cash charges for network
advertising and promotion contributed by CBS to the company ($2.1
million in the fourth quarter and $7.1 million for 1998.)
The company also reported significant increases in traffic and
users of its cbs.marketwatch.com web site during the quarter. The
company recorded 160 million page views in the fourth quarter, an
increase of 36 million, or 29% from the third quarter. The number of
unique visitors to the company's web sites increased from a monthly
average of 1.7 million in the third quarter to 2.3 million in the
fourth quarter, an increase of 35%. Reach numbers are calculated
by DoubleClick, which serves ads on the company's sites via its DART
service.
"We are extremely pleased with our fourth quarter results, which
exceeded our expectations," said Larry Kramer, President and
CEO of MarketWatch.com. "We continue to see sharp increases in the
number of users to the site and the number of pages read, and an
even larger percentage increase in our revenue. We believe that this
success reflects the quality of our programming and content, our
increased marketing activity, CBS' important advertising and
branding contributions, the increased use of our journalists on the
CBS television and radio networks, and the impact of our ongoing
relationships with strategic partners like Data Broadcasting Corp.
and Yahoo. During the second half of 1998 we signed several
new distribution deals, including one with Intuit, increased
our original reporting on the big cap stocks, personal finance,
bonds, the Internet and many other areas, and introduced new
products, such as our enhanced portfolios."
Kramer also attributed some of the growth to the rapidly growing
use of the Internet for stock trading and personal finance. "We
believe that the Internet is rapidly becoming the medium of choice
for individuals to control their finances. We believe this trend will
continue and that we are well positioned as a leading destination for
information needed by that audience. With the completion of our IPO
last month, we have strengthened our balance sheet and we are now
investing the capital to improve our business," he said.
The company recently completed its initial public offering of common
stock. The company sold 3,162,500 shares of common stock including
underwriter over-allotments which resulted in net proceeds to the
company of approximately $50.0 million without deducting offering
expenses. Net proceeds of the offering will be used for repayment of
debt and general corporate purposes, including marketing activities
and working capital.
On a pro-forma basis, assuming the shares sold in the company's
initial public offering in January, 1999 were outstanding from
January 1, 1998, net losses per share for the quarter and year ending
December 31, 1998 were $0.36 and $1.02, respectively.
The Company's CBS.MarketWatnalytic tools.
This press release contains forward-looking statements that involve
risks and uncertainties. MarketWatch.com, Inc.'s actual results could
differ materially from those anticipated in these forward-looking
statements. Factors that might cause or contribute to such
differences include, among others, the continued increases in the
number of companies advertising on the cbs.MarketWatch.com Web site
as well as on the Web generally; risks associated with the Company's
relationships with CBS (NYSE: CBS) and DBC(NASDAQ:DBCC) described in
the Company's Prospectus relating to its initial public offering; the
Company's ability to increase users and the time spent on its Web
site; the intensely competitive environment for Web advertising sales
and for Web-user traffic; the Company's ability to enter into
distribution and other strategic relationships with high traffic Web
access points; reductions in market prices for Web advertising as a
result of competition, changing requirements of advertisers or
otherwise; the Company's ability to manage its growth; acceptance of
the Company's new services; the increased use of the Web for commerce
and the increased number of users engaging in Web commerce through
the Company's services; and general economic conditions.
More information about potential factors which could affect the
Company's business and financial results is included in the Company's
prospectus dated January 15, 1999 under the headings "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition and
Results of Operations." All forward-looking statements are based on
information available to the Company on the date hereof.
MarketWatch.com, Inc. assumes no obligation to publicly release the
result of any revisions of these forward-looking statements.
MarketWatch.com, Inc.
Statement of Operations
Three Months
ended Year ended
December 31, December 31,
1998 1998
------------ ------------
Net revenues:
Advertising $ 2,061,000 $ 5,115,000
News to DBC 336,000 1,285,000
Subscription 137,000 627,000
--------------------- ----------------
Total net revenues 2,534,000 7,027,000
Cost of revenues:
Advertising and news 879,000 2,398,000
Subscription 134,000 439,000
--------------------- ----------------
Total cost of revenues 1,013,000 2,837,000
--------------------- ----------------
Gross profit 1,521,000 4,190,000
--------------------- ----------------
Operating expenses:
Product development 433,000 1,468,000
General and administrative 1,330,000 3,429,000
Sales and marketing 3,918,000 11,547,000
--------------------- ----------------
Total operating expenses 5,681,000 16,444,000
--------------------- ----------------
Operating loss (4,160,000) (12,254,000)
Interest expense (85,000) (159,000)
--------------------- ----------------
Net loss $ (4,245,000) $ (12,413,000)
===================== ================
Basic and diluted
net loss per share $ (0.47) $ (1.38)
===================== ================
Shares used in the
calculation of
basic and diluted
net loss per share 9,000,000 9,000,000
===================== ================
MarketWatch.com, Inc.
Balance Sheet
Pro Forma
December 31, December 31 December 31,
1997 1998 1998 (A)
-------------- ------------- --------------
ASSETS
Current:
Cash $ -- $ 140,000 $ 46,194,000
Accounts receivable,
net of allowances for
doubtful accounts of
$10,000 and $120,000 224,000 1,586,000 1,586,000
Prepaid expenses -- 2,000 2,000
------------ ------------ ------------
Total current
assets 224,000 1,728,000 47,782,000
Other assets -- 11,000 11,000
Deferred offering costs -- 1,816,000 --
Property and equipment, net 13,000 932,000 932,000
------------ ------------ ------------
Total assets $ 237,000 $ 4,487,000 $ 48,725,000
============ ============ ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current:
Accounts payable and
accrued expenses $ -- $ 1,969,000 $ 1,969,000
Accrued expenses 75,000 1,688,000 1,688,000
Deferred revenue 10,000 14,000 14,000
Advances from DBC -- 3,946,000 --
------------ ------------ ------------
Total current
liabilities 85,000 7,617,000 3,671,000
------------ ------------ ------------
Stockholders' equity:
Preferred stock,
$.01 par value;
5,000,000 shares
authorized, no
shares issued
and outstanding -- -- --
Common stock, $.01
par value; 30,000,000
shares authorized;
9,000,000 shares
issued and outstanding 90,000 90,000 122,000
Additional paid-in
capital 51,925,000 53,366,000 81,518,000
Deferred compensation -- (1,144,000) (1,144,000)
Contribution
receivable (51,782,000) (42,948,000) (22,948,000)
Accumulated deficit (81,000) (12,494,000) (12,494,000)
------------ ------------ ------------
Total stockholders'
equity (deficit) 152,000 (3,130,000) 45,054,000
------------ ------------ ------------
Total liabilities
and stockholders'
equity $ 237,000 $ 4,487,000 $ 48,725,000
============ ============ ============
(A) The company's initial public offering occurred on January 15,
1999. The company sold 3,162,500 shares of common stock including
underwriter over-allotments which resulted in net proceeds to the
company of approximately $50 million and total post-offering shares
outstanding of 12,162,500. The above pro forma balance sheet assumes
the company's initial public offering occurred by December 31, 1998
and the advances from DBC were concurrently repaid with the proceeds.
The pro forma statement also reflects a $20 million reduction to the
Contribution receivable and additional paid-in capital under the terms
of the Stockholders agreement which became effective upon completion
of the initial public offering.
CONTACT: MarketWatch.com, Inc.
J. Peter Bardwick, 415/733-0500 |
