MessageMedia Reports Strong Third-Quarter Results
Revenues Jump by 783% over Third Quarter 1998
135% over Previous Calendar Quarter
Company Completes $42M Private Placement
BOULDER, Colo.--(BUSINESS WIRE)--Oct. 26, 1999--MessageMedia Inc. (Nasdaq:MESG), the leading provider of e-mail-based customer relationship management and direct marketing services, today announced strong revenue growth in its results for the third quarter and nine-month period, ended September 30, 1999.
Additionally, the company announced that it has completed a $42 million round of private placement equity financing.
In the third quarter, the Company reported revenue of $3.1 million, a 783% increase over the $0.3 million reported in the third quarter of 1998. For the third quarter of 1999, net loss before amortization of goodwill was $5.4 million, or a loss per share of $0.11. Including the amortization of goodwill, the Company reported a net loss of $13.7 million, or $0.29 per share, based on weighted average shares outstanding of 47,355,875. These results compare to a net loss (both before and after goodwill amortization) of $1.7 million, or a loss per share of $0.05 in the same period of 1998, based on weighted average shares outstanding of 31,744,216.
For the nine-months ended September 30, 1999, MessageMedia reported revenue of $5.1 million, a 505% increase over the $0.8 million reported in the same period a year ago. For the first nine months of 1999, the net loss before amortization of goodwill was $12.3 million, or a loss per share of $0.28. Including the amortization of goodwill, the net loss for the first nine months of 1999 was $26.9 million, or a loss of $0.61 per share, based on weighted average shares outstanding of 43,995,120. These results compare to a net loss (both before and after amortization) of $9.3 million, or a loss per share of $0.52 in the same period in 1998, based on weighted average shares outstanding of 18,125,810.
Including pro forma results for the full quarter from the acquisitions of Revnet Systems and Decisive Technology, (which were completed on August 9 and August 16, respectively), MessageMedia revenues were $3.6 million during the three months ended September 30, 1999 as compared to pro forma revenues for the full quarter of $1.7 million for the three months ended September 30, 1998.
''The third quarter was a major win for us not only in terms of revenue growth but also because we positioned the company to capitalize on its current momentum,'' said Larry Jones, president and CEO of MessageMedia.
''We broadened our blue-chip customer base by adding 21 new messaging customers. We strengthened our customer value proposition by completing the acquisitions of Revnet and Decisive. We also solidified our world-class management team by appointing a chief financial officer and expanded our worldwide market by launching MessageMedia Europe.''
''The record results we posted for the third quarter and nine-month period reflect MessageMedia's ability to execute strategy and dominate the e-messaging industry,'' Mr. Jones continued. ''Our new client wins reinforce MessageMedia's strategy of delivering to customers a comprehensive suite of services and product solutions to help them build customer relationships on-line. We continue to see significant growth in the recurring revenue stream from our existing clients as we cross-sell the products and services provided by our recently completed acquisitions of Revnet Systems and Decisive Technology.''
Companies added to MessageMedia's client roster in the third quarter include:
Global Sports, Inc., which operates the e-commerce business of leading sports equipment retailers including The Sports Authority, The Athlete's Foot and Sport Chalet, to manage its online customer service outreach and deliver customized messages to narrowly defined groups who have requested information from their retail partners.
Countrywide Home Loans, a national leader in residential finance, to launch its e-messaging program for its real estate agent newsletter;
Powerize.com, an in-depth business research service for the Internet, to provide e-messaging services by delivering personalized e-mails to Powerize.com's registered users and subscribers to its online information services;
Advanstar Communications, a worldwide business information company, to provide e-mail service solutions to Advanstar customer base;
PlanetU, the premier provider of targeted Internet promotions services for the consumer packaged goods industry, using e-messaging to planet U's registered consumers to receive timely notification of targeted offers from planet U's flagship service, called U-pons Internet.
''In the third quarter of 1999 alone, we saw a dramatic increase in the use of permission-based e-messaging by prominent e-commerce players,'' Mr. Jones notes. ''We expect this trend to continue on a worldwide basis. Earlier this month we announced a joint venture in Europe with @viso. Our early and aggressive entrance into Europe allows us to extend the MessageMedia brand and our unique network of services and product solutions into what is expected to be a burgeoning e-commerce arena.''
''MessageMedia's stronghold in e-messaging provides a significant competitive advantage that we intend to leverage and maximize by using our experience and capabilities gained through acquisition to establish the industry standard for permission-based e-messaging among additional strategic initiatives,'' Mr. Jones said.
Additionally, the company announced that it has closed private placement equity funding of $42 million. The new round of financing is led by Van Wagoner Capital Management and includes significant investments from the company's two largest holders, SOFTBANK Venture Capital and Pequot Private Equity Funds. ''With a new round of private equity financing, we have strengthened our cash base to support growth through the expansion of product and service offerings and additional acquisitions. This is one part of our initiatives to solidify relationships in the financial community that should win greater coverage on Wall Street.''
About MessageMedia Inc.
MessageMedia (Nasdaq:MESG) is a leading provider of e-mail-based customer relationship management and direct marketing services. The Company offers a comprehensive suite of outsource messaging services for information delivery, e-commerce services, permission-based direct marketing, ongoing customer communications and real-time customer feedback solutions using industry standard Internet protocols. MessageMedia's customer portfolio includes clients from the financial services, publishing, direct marketing, retailing, software and electronic commerce industries. Clients include E-TRADE, AOL, Apple, Yahoo!, Microsoft, GeoCities, Intuit, CMP Media, Barclays Bank, EDS, CNBC, Universal Studios and Bertelsmann.
Investors in MessageMedia include SOFTBANK and its affiliates, which constitute the world's largest investors in the Internet and Pequot Capital Management, a Connecticut-based research-intensive investment firm.
''Safe Harbor'' Statement Under the Private Securities Litigation Reform Act. With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties. These risk factors include, but are not limited to, the integration of a new senior management team, MessageMedia's limited operating history, the integration of recent acquisitions, risks associated with pending and future acquisitions, the anticipated fluctuations in operating results, the uncertain acceptance of new services being offered, and undeveloped and rapidly changing market and other factors detailed in MessageMedia's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1998 and its most recent Quarterly Report on Form 10-Q. All companies and product names are trademarks of their respective owners. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. MessageMedia undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
MessageMedia Inc.
6060 Spine Road, Boulder, Colo. 80301.
Phone: 303/440-7550;
Fax: 303/440-0303
messagemedia.com.
InvestorRelations inquiries should be sent to
mailto:investor@messagemedia.com.
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