Internet Stock News Announces Investment Opinion: WebTrendsetting
Business Wire - October 20, 1999 05:16
SAN DIEGO--(BUSINESS WIRE)--Oct. 20, 1999--
INTERNET STOCK NEWS(TM): Oct. 20, 1999
"WebTrendsetting" by Seth Berger, ISN Writer
Also available on the Web at
internetstocknews.com
After the market closed Monday, WebTrends (Nasdaq:WEBT) surprised Wall Street with Q3 earnings of 6 cents a share, analysts were expecting $0.04. This was the second sequential quarter of over 30% revenue growth. WebTrends looks to expand its product offerings in the fourth quarter and invest more in R&D.
WebTrends is a vendor of enterprise management, analysis and reporting software for Internet systems. They also provide consulting services to their customers. WebTrends revenues come from software licenses and subscriptions. WebTrends sells software that mines Web site logs and puts together concise and informative reports. The reports can calculate ROI from advertising campaigns, visitors to sales ratios, click-paths, and much more.
Large Web sites can generate gigabytes of log files. By analyzing logs, e-businesses can maximize their investments and prevent costly problems. Many companies have considered developing their own in-house log analysis tools, but instead have opted to use tools from WebTrends. WebTrends provides analysis tools to evaluate proxy and firewall traffic as well. One of WebTrends' newer products, CommerceTrends, helps corporations predict revenues by calculating visitor quality, and forecasting product revenues.
WebTrends has a large customer base of over 31,000 information technology, financial, media and telecommunication companies. Customers include Microsoft (Nasdaq:MSFT), Hewlett-Packard (NYSE:HWP), IBM (NYSE:IBM), Intel (Nasdaq:INTC), and USWeb/CKS (Nasdaq:USWB). "More than half of all Fortune 500 companies are WebTrends' customers today," boasted Chief Executive Officer Eli Shapira during yesterday's earnings conference call. Martha Stewart Living has even recently deployed over $100,000 worth of WebTrends' technology noted CFO, Jim Richardson.
WebTrends provides extreme value for their customers. As the e-commerce space becomes more crowded, WebTrends will only benefit. International Data Corp expects 319 million Internet users by 2002. The traffic that the users create will need to be analyzed and summarized. WebTrends is committed to its customers and plans on boosting its research and development in the fourth quarter. The company's customers are equally committed to WebTrends. Orders from customers of over $5,000 grew 78% from last quarter.
WebTrends seems unintimidated by the competitors. The largest competitor Accrue Software (Nasdaq:ACRU), recently purchased Marketwave Corp. to boost market share and breadth of products. WebTrends market share is based upon many esteemed resellers/distributors such as Concentric Network (Nasdaq:CNCX), PSINet (Nasdaq:PSIN), Digex (Nasdaq:DIGX), Verio (Nasdaq:VRIO), Cisco (Nasdaq:CSCO), F5 Networks (Nasdaq:FFIV) and RedHat (Nasdaq:RHAT). WebTrends has a larger market share and a significant lead over its competitors. Accrue's revenues are less than half of WebTrends, and Accrue is still using a red pen on its financial statements. Macromedia (Nasdaq:MACR) may become a significant competitor with its purchase of Andromedia. Broadvision is also a distant competitor.
The partnerships that WebTrends have established complement many of their products. Cisco for example helps build clusters of servers. WebTrends products' are designed to scale across the clusters. "We win on the scalability issues," commented Shapira.
WebTrends is embracing the Linux open-source movement through its partnership with Red Hat. The company is shipping a demo its Enterprise Reporting Server for Linux on Red Hat's Linux Application CD. WebTrends is the first full-blown Web traffic analysis tool designed for Linux. Linux is very robust operating system used by more than 10 million users worldwide, according to IDC. The targeted market gives WebTrends a niche and a first mover advantage.
WebTrends expects to increase its business in the fourth quarter by rolling out its E-Services. This will consist of a subscription based model and will be targeted at many of WebTrends current customers as well as new customers. WebTrends expects to make the announcement in mid-November.
The market for Web site log analysis and reporting software will swell from $29 million in 1998 to $132 million in 2002, according to IDC. WebTrends is not only attacking the Web site log analysis market but also the Intranet market. The company has a clear direction and a big market lead.
Article also available on the Web at internetstocknews.com
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Internet Stock News is a free media publication providing FREE real time quotes, access to Internet Initial Public Offerings (IPO's), independent news, research, and commentary about the Internet investment revolution. Interested analysts, brokers, institutional & individual investors may subscribe to Internet Stock News for free at internetstocknews.com
Members will be periodically informed of ground floor investment opportunities in Internet companies such as: Amazon.com (Nasdaq:AMZN), barnesandnoble.com (Nasdaq:BNBN), CNET (Nasdaq:CNET), DoubleClick (Nasdaq:DCLK), ISS Group (Nasdaq:ISSX), NorthPoint Communications (Nasdaq:NPNT), Phone.com (Nasdaq:PHCM), RealNetworks (Nasdaq:RNWK), Software.com (Nasdaq:SWCM), AXENT Technologies (Nasdaq:AXNT), EarthWeb (Nasdaq:EWBX), nFront (Nasdaq:NFNT), mapquest.com (Nasdaq:MQST), Pacific Internet (Nasdaq:PCNTF), Sportsline USA (Nasdaq:SPLN), theglobe.com (Nasdaq:TGLO).
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