HEADHUNTER.NET ANNOUNCES RECORD THIRD
QUARTER; REVENUES RISE 638% TO $2.9 MILLION
BUSINESS EDITORS ATLANTA--(BUSINESS WIRE)--OCT.
21, 1999--HEADHUNTER.NET, INC. (NASDAQ/NM:HHNT)
TODAY REPORTED RECORD
ATLANTA--(BUSINESS WIRE)--Oct. 21, 1999--Headhunter.net, Inc.
(Nasdaq/NM:HHNT.O) today reported record revenues and customers for the
third quarter and nine months ended September 30, 1999.
Net revenue for the third quarter rose to $2.9 million compared
with net revenue of $393,000 in the third quarter a year ago, a 638%
increase. Third quarter revenues were $1.3 million greater than the
second quarter of 1999, an 81% sequential growth rate. The Company
reported a net loss of $1.8 million, or $0.19 per share, for the third
quarter of 1999 compared with a net loss of $1.9 million, or $0.85 per
share, for the comparable quarter last year.
"Headhunter.net's strong third quarter growth was fueled by a
significant increase in our customer base," stated Robert M.
Montgomery, Jr., president and chief executive officer of
Headhunter.net. "With the proceeds from our initial public offering in
mid-August, we accelerated our sales and marketing programs, which
resulted in over 1,100 new customers during the third quarter. In
addition, we're building a strong base of recurring revenue, as
evidenced by our average customer revenue rising over 33% from the
second quarter of this year."
Headhunter.net opened four additional sales offices during the
quarter in Chicago, New York, Dallas and San Francisco, with plans to
open additional sales offices in Los Angeles, Boston and Washington,
D.C. over the next two quarters. Sixteen persons were added to the
Headhunter.net sales team during the third quarter, for a total of 48
at September 30, 1999.
IPO Raises $30 Million in Gross Proceeds
Headhunter.net completed an initial public offering of 3 million
shares on August 19, 1999, and raised approximately $30 million in
gross proceeds. The proceeds were used to repay debt and will be used
to expand the Company's sales and marketing programs, to continue
product development, and for general corporate purposes.
"In coming quarters, we will benefit from increased brand
awareness as a result of accelerated marketing efforts," added Mr.
Montgomery.
Nine-Month Results
Revenues for the first nine months of 1999 rose 657% to $5.3
million compared with $0.7 million for the same period of 1998.
Revenue growth benefited from higher job posting revenue and the
implementation of a new pricing model in June 1999 that emphasized job
packs compared with single job postings. The Company recorded a net
loss of $8.3 million, or $1.05 per share, in the first nine months of
1999 compared with a net loss of $3.0 million, or $1.34 per share, in
the first nine months of 1998.
About Headhunter.net
Headhunter.net (http://www.headhunter.net) is a leading national
online recruiting service that specializes in empowering corporations
and candidates to manage the position of their job or resume postings
within a search. Headhunter.net attracts more than 110,000 unique
users per business day. The site has more than 150,000 current job
listings and over 200,000 resumes posted. The 1999 Electronic
Recruiting Index lists Headhunter.net as one of the top two employment
sites rated by recruiters in a survey gauging customer satisfaction
and online performance.
More than 5,000 companies of all sizes post open positions on
Headhunter.net in more than 120 job categories. The most popular
categories include computer, engineering, sales, marketing,
accounting, and finance. The site distinguishes itself by giving job
seekers privacy when searching and applying for jobs, and allows job
posters to precisely manage the visibility of their listings. Large
companies with ongoing recruiting needs can open corporate accounts. A
popular feature among small-and medium-sized businesses is EaseEPost,
which enables companies to post positions using a credit card.
Some of the preceding statements in this press release constitute
"forward-looking statements" within the meaning of the Securities Act
of 1933, as amended, and the Securities Exchange Act of 1934, as
amended, and the Company intends that such forward-looking statements
be subject to the safe harbors created thereby. Examples of words
indicating forward-looking statements include "believes," "expects"
and "will". These forward-looking statements reflect the Company's
current views with respect to future events and financial performance,
but are subject to many uncertainties and factors relating to the
Company's operations and business environment which may cause the
actual results of the Company to be materially different from any
future results expressed or implied by such forward-looking
statements. Please see the section entitled "Risk Factors" in the
Company's Prospectus, which is incorporated by reference in this press
release, for a list of such uncertainties and factors. The Company
undertakes no obligation to publicly update or revise any
forward-looking statement whether as a result of new information,
future events, or otherwise.
-0-
*T
HEADHUNTER.NET, INC.
STATEMENT OF OPERATIONS
(Unaudited and in thousands, except per share amounts)
Three Months Ended
September 30,
1999 1998
------- -------
Revenues
Corporate revenue $ 2,554 $ 91
Banner revenue 339 302
------- -------
Total revenues 2,893 393
Cost of revenues 33 23
Gross profit $ 2,860 $ 370
Net loss $ (1,752) $(1,877)
======= =======
Basic and Diluted Net
Loss per share $ (0.19) $ (0.85)
======= =======
Weighted average
common shares outstanding 9,147 2,200
======= =======
Nine Months Ended
September 30,
1999 1998
------- -------
Revenues
Corporate revenue $ 4,578 $ 167
Banner revenue 728 504
------- -------
Total revenues 5,306 671
Cost of revenues 94 64
Gross profit $ 5,212 $ 607
Net loss $ $(8,276) $(2,955)
======= =======
Basic and Diluted Net
Loss per share $ (1.05) $ (1.34)
======= =======
Weighted average
common shares outstanding 7,857 2,200
======= =======
Operating Statistics
Traffic 108,367,000
Users 8,369,000
Total No. of Customers 5,800
Total Jobs 164,000
HEADHUNTER.NET, INC AND SUBSIDIARIES
CONDENSED BALANCE SHEETS
September 30, December 31,
1999 1998
------------- ------------
ASSETS (unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 24,631,349 $ 254,937
Other current assets 1,656,486 491,764
------------ -------------
Total current assets 26,287,835 746,701
------------ -------------
PROPERTY AND EQUIPMENT 1,306,299 447,325
GOODWILL, net 603,702 750,548
OTHER NONCURRENT ASSETS 83,641 280,606
------------ ----------
TOTAL ASSETS $ 28,281,477 $ 2,225,180
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term borrowings -- 3,500,000
Other current liabilities 2,465,467 693,123
------------ ------------
Total current liabilities 2,465,467 4,193,123
------------ ------------
SHAREHOLDERS' EQUITY (DEFICIT):
Total shareholders'
equity (deficit) 25,816,010 (1,967,943)
------------ ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 28,281,477 $ 2,225,180
============ =============
*T
--30--AR/na*
CONTACT: Headhunter.net, Atlanta
Mark Partin, 770/300-9272, ext. 711
mark.partin@headhunter.net
KEYWORD: GEORGIA
INDUSTRY KEYWORD:
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