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Technology Stocks : BHH -- the B2B Depository Receipts -- Ignore unavailable to you. Want to Upgrade?

To: Ann Corrigan who wrote (14)	4/13/2000 3:29:00 PM
From: Ann Corrigan	Read Replies (1) \| Respond to of 22

From Briefing.com via Ragin' Bull forum. ARBA is one of the largest holdings in the BHH: Briefing.com's Take on ARBA & B2B Sector 09:06 ET ****** Ariba (ARBA) 72: It was hard not to be impressed with Ariba's earnings report last night. Not only did Ariba beat consensus EPS estimates by two cents with its $0.06 loss, but its top-line of $40.0 mln was ahead of both the $36-38 mln preannouncement from April 4 and the well ahead of analysts' estimates prior to that preannouncement. In addition to listening in on the conference call, Briefing.com also interviewed CEO Keith Krach following the call. What came across most clearly in both calls was that despite the market's trashing of the B2B sector of late, the underlying momentum in B2B has been phenomenal. We asked Mr. Krach about market concerns that the trends in B2B might be leading away from transactions-based pricing models, to which he responded that Ariba was "not seeing that at all." He emphasized that businesses are interested primarily on fast time to market with B2B exchanges and creating liquidity in those markets, and that they were open to many types of partnerships -- including equity ownership of exchanges and transactions-based revenues -- to achieve those goals. In addition to easing fears about the model, Krach also made it clear that Ariba's business is booming. The Q2 revenue number was not the only impressive figure in the report. Deferred revenues rose to $85 mln from $47 mln in the prior quarter. Unlike most software companies, Ariba does not report total licensing fees upon installation. Because they use transactions-based pricing and subscriptions to the Ariba Network, revenues are reported over the life of the contract, which typically ranges from 12-24 months. This gives Ariba greater revenue visibility, and clearly the $38 mln jump in deferred revenues during Q2 was exceptional. Ariba also reported that the fastest growing component of revenues was what it refers to as subscriptions, which were up 405% year/year. Subscriptions include both subscriptions to the Ariba Network and transactions-based revenues. Finally, Ariba now has 211 customers, over 100 marketplaces, and has seen a tripling in customer accounts at recent acquisitions Tradex and Trading Dynamics following the definitive acquisition agreements. Krach claimed that Ariba is beginning to see the benefits of network effects, as more companies -- including even small and mid-sized businesses -- are seeking out Ariba due to the critical mass being built in its marketplaces. Ariba's momentum is impressive, and the sell-side analysts on the call were clearly impressed. Merrill Lynch has already come through with an upgrade to NT BUY from ACCUMULATE this morning, and more positive comments should be expected. Ariba is the B2B leader right now, and the word from the CEO is that despite doubts in the market, Ariba's B2B model is solid and business momentum is tremendous. - GJ rally4roi Source: Story Stocks by Briefing.com Updated: 13-Apr-00 Quotes at time of story, top stories today: (KLAC 11:40) (AMTD 10:05) (ARBA 09:06) (AMD 08:50) Content provided by Briefing.com, a leading Internet provider of Live market analysis. Raging Bull Advertisement - TradingDirect, $9.95 per trade, no middleman BoardMark MemberMark Ignore Poster Report TOS Violation ARBA Update Last 73 11/16 Chg. +1 45/64 % +2.34 % Time 15:10:00 Detailed \| Real-Time Nasdaq delayed 15 minutes, 20 min. otherwise. Previous \| Next \| Post New \| Respond \| View Replies E-Mail this post to a Friend! New! Favorite Boardmarks \| No boardmarks have been placed Ariba, Inc. (ARBA) - News Audio: ON24/Briefing.com: Spotlight: Ariba Thursday, 13 Apr 2000, 12:08 PM EDT, Comtex News Service RESEARCH ALERT2 - Pru cuts Ariba target to $85 Thursday, 13 Apr 2000, 11:43 AM EDT, Reuters Financial News Grainger Selects webMethods to Provide Business... Thursday, 13 Apr 2000, 9:19 AM EDT, Comtex News Service