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Technology Stocks : GoTo.com, promising Internet search engine -- Ignore unavailable to you. Want to Upgrade?

To: Mike Fredericks who wrote (438)	7/21/1999 11:42:00 AM
From: Mike Fredericks	Read Replies (1) \| Respond to of 977

Addendum to previous post - also in that message Goto sent out, they said that they were getting 100 million searches a month. In my revenue model, 100 million searches would generate $2.975 Million in revenues per month, which would be a shade under $9 Million in revs per quarter. They were at 80 million searches a month in May, so figure June revs were (using same model) $2.38 Million. If August is same as July, that would be over $8 Million in revs for Q3. The question is, how much did expenses go up in Q3. They seem to have abandoned print advertising, but the affiliate program is relatively new and probably didn't count so much in Q2 and will count a bunch in Q3. Likewise if you remember around 1 July there were times when you could query Goto and get error messages about their being at capacity... figure that they've been adding more hardware and network support to increase capacity, so that's expenses too. Expenses for Q1 were $7 million... if they can keep them roughly at that level, maybe we could see breakeven in Q3 and a profit in Q4? (Summary of my revenue model is that 5% of the searches generate 50 cents per search and the other 95% of searches generate 1/2 cent per search. See a post of mine like #104 or so for details) -Mike