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Technology Stocks : Inktomi (INKT)
INKT 12.60+0.4%Dec 12 9:30 AM EST
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To: Bala who wrote (1188)4/21/1999 6:21:00 PM
From: Mike Fredericks  Read Replies (2) of 1945
 
Hello all-

I am not a shareholder or anything, and have only read a few posts on this thread. But I did read INKT's latest Annual report... it says that the way INKT makes their revenue (from search engines) is that they charge per query and also take a share of ad revenue from the site using their search engine.

I also noticed that last year at some point, GOTO.COM switched from Altavista to Inktomi. Was this for pricing reasons or for technical reasons? INKT seems to provide their engine to fewer search engines than Altavista, but they seem to be more major players (Hotbot, Yahoo and Goto come to mind, then there's snap also)

4 customers account for 77% of the revenue... 20MM in revenues in the last fiscal year (12MM search engine, 7MM network technology). That's roughly $4MM/customer for the "big 4." I know that Altavista (#4 site on the web according to hot100.com ) gets over 1BB hits/month, so it's not too far fetched for Hotbot or Goto or someone else to get 100MM hits/month or 1BB hits/year... so it looks to me as though INKT is making somewhere around 3 cents per every 1000 queries on average, and that is including the ad revenue?

I am wondering what I'm missing here... anyone have details on the agreements between INKT and any of the big search engines to know exactly how much they're getting or could expect to get if the aforementioned engines gain more traffic? Hard to project future revenues without this information.

Anyway, hope I'm not disrupting the thread... just doing some DD and trying to figure out INKT's business model on the search engine side (the network stuff is another story).

Thanks,
-Mike
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