7/25....MYPT...Revenues Rise to $18.7 Million as Loss Narrows 36% Sequentially to $0.19 per Share ( first call 30)
SAN FRANCISCO, July 25 /PRNewswire/ -- MyPoints.com (Nasdaq: MYPT - news), a leading provider of integrated eMarketing solutions, today announced financial results for the second quarter ended June 30, 2000.
(Photo: newscom.com )
Revenues for the second quarter rose to $18.7 million, an 18% sequential increase over revenues of $15.8 million in the first quarter and a 593% increase over second quarter 1999 revenues of $2.7 million. Gross profit for the second quarter rose 22% to $14.3 million, or 76% of revenues, compared to gross profit of $11.7 million in the first quarter, or 74% of revenues.
Before non-cash charges associated with amortization of acquisition-related expenses and stock-based compensation, the Company reported a second quarter net loss of $5.5 million, or $0.19 per share, a 36% sequential improvement from a net loss of $8.6 million, or $0.32 per share, in the first quarter. In the second quarter of 1999, MyPoints.com posted a net loss exclusive of certain non-cash charges of $8.8 million, or $0.49 per share, on a pro forma basis.
Including non-cash charges, the Company reported a second quarter net loss of $7.8 million, or $0.27 per share, a 28% sequential improvement from a net loss of $10.9 million, or $0.40 per share, in the first quarter. In the second quarter of 1999, MyPoints.com posted a net loss of $10.3 million, or $0.57 per share, on a pro forma basis.
As of June 30, 2000, MyPoints.com had $108 million in unrestricted cash and cash equivalents, which the Company believes is more than adequate to carry it through its projected timetable to profitability.
``During the second quarter, MyPoints.com successfully grew sales and leveraged its technology infrastructure to achieve substantial bottom-line improvement,'' said Steve Markowitz, chairman and CEO of MyPoints.com. ``The Company's model builds on the strength of performance-based advertising products which generate high return on investment for our clients. Therefore, as industry trends shift toward advertising models based on performance, MyPoints.com is uniquely positioned to capture market share.
``MyPoints.com also continues to develop new ways to monetize its active base of more than 8 million MyPoints members, including enhanced core services as well as new programs tied to everyday activities, such as credit card usage and offline purchases,'' Markowitz added. ``As we move into the second half of the year, we look forward to completing our acquisition of Cybergold, launching programs in international markets, and enjoying the benefits of the technology infrastructure that we have built over the last three years.''
Second quarter highlights include:
Membership in MyPoints and MyPoints Network programs grew to more than 8 million, a sequential increase of 20% over the first quarter.
MyPoints® Shopping, the Company's e-commerce portal, grew to 169 merchants, a sequential increase of 90% over the first quarter.
The Company launched new membership programs, including MyPoints® Connect!, the Internet's first rewarded ISP, and, more recently, carclub by MyPoints, in partnership with J.D. Power Clubs.
MyPoints Offline Services continued the rollout of credit card rewards programs on behalf of leading supermarket retailers, Albertsons and The Kroger Company, and, more recently, MyPoints.com announced the launch of its own branded credit card, the MyPoints® MasterCard®.
The Company launched six new MyPoints® Network co-branded loyalty programs on behalf of clients.
MyPoints.com and Dai Nippon Printing Co., Ltd., one of the world's largest direct marketing services companies, announced a joint venture initiative to create MyPoints® Japan to address the growing Japanese Internet market.
In June, MyPoints.com ranked as the Web's No. 1 most popular incentive site and No. 3 most popular retail destination by audience measurement firm Media Metrix.
MyPoints.com's fiscal 2000 second quarter conference call Web cast will be available on Tuesday, July 25 at corp.mypoints.com.
About MyPoints.com
MyPoints.com is a leading provider of integrated eMarketing solutions. The MyPoints® suite of products enables the Company's clients to acquire new customers and optimize existing relationships over the Internet.
MyPoints®, the Company's flagship service, enables marketers to identify, acquire and retain customers through highly targeted email and Web-based promotional offers delivered to an audience of more than eight million members. Advertisers leverage MyPoints.com's loyalty infrastructure to offer consumers a tangible incentive to respond.
MyPoints® Shopping!, the Company's e-commerce channel, enables major Web merchants to provide consumers with a continuing incentive to shop at their sites. MyPoints.com is the Internet's No. 1 most popular incentive site, and No. 3 most popular retail site (June 2000, Media Metrix).
MyPoints® Offline, the Company's clicks-and-mortar program, enables clients to utilize the reach and opt-in marketing tools of MyPoints to drive sales offline as well as on the Internet.
The MyPoints® Network enables businesses to implement quickly and cost-effectively a co-branded version of the MyPoints rewards program to drive transactions and build long-term loyalty among users at their own sites.
MyPoints.com has sales offices in cities nationwide. For detailed product information, please call 800-890-9351, 212-699-8050, ext. 7702 from outside North America, or visit MyPoints.com at www.mypoints.com/company.
NOTE: MyPoints is a trademark of MyPoints.com, Inc. Other product and company names herein are trademarks of their respective owners.
MYPOINTS.COM ``SAFE HARBOR'' STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Statements in this press release regarding MyPoints.com, Inc.'s business which are not historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the acquisition of Cybergold as well as future acquisitions which MyPoints.com may undertake and the company's expectations, beliefs, hopes, intentions or strategies regarding the future and the acquisition. Forward-looking statements include statements regarding future revenue and market growth. All forward-looking statements included in this document are based upon information available to the company as of the date hereof, and the company assumes no obligation to update any such forward-looking statement. Actual results could differ materially from current expectations. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ``Risk Factors'' in MyPoints.com's report on Form 10-K for the year ended December 31, 1999.
MYPOINTS.COM, INC.
(formerly Intellipost Corporation)
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
(Unaudited) (Unaudited)
Revenues $18,706 $2,663 $34,528 $3,938
Cost of revenues 4,430 999 8,543 1,877
Gross profit 14,276 1,664 25,985 2,061
Operating expenses:
Technology costs 5,642 1,423 10,918 2,391
Sales and marketing
expenses 10,301 7,321 21,694 9,885
General and
administrative
expenses 5,611 1,671 10,011 2,745
Amortization of
intangible assets 1,242 802 2,419 1,634
Stock-based
compensation 1,100 710 2,200 1,159
Total operating
expenses 23,896 11,927 47,242 17,814
Operating loss (9,620) (10,263) (21,257) (15,753)
Interest income 1,825 1 2,641 10
Interest expense
and other, net (49) (42) (102) (42)
Net loss (7,844) (10,304) (18,718) (15,785)
Dividend related
to beneficial
conversion of
preferred stock -- -- -- (9,800)
Net loss
attributable
to common
stockholders $(7,844) $(10,304) $(18,718) $(25,585)
Net loss per share:
Basic and diluted $(0.27) $(1.86) $(0.67) $(4.70)
Weighted average
shares -- basic
and diluted 29,046 5,546 27,944 5,441
Pro forma net loss
per share:
Basic and diluted $(0.27) $(0.57) $(0.67) $(1.52)
Weighted average
shares -- basic
and diluted 29,046 17,934 27,944 16,824
MYPOINTS.COM, INC.
(formerly Intellipost Corporation)
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2000 1999
(unaudited)
Assets
Current assets:
Cash and cash equivalents $108,461 $21,792
Accounts receivable, net 18,966 12,500
Unbilled receivables, net 347 257
Notes and interest receivable 2,035 --
Deposits and prepaid expenses 1,842 1,702
Other current assets 1,008 484
Total current assets 132,659 36,735
Intangible assets 20,150 7,757
Restricted cash 2,509 2,208
Property and equipment, net 12,107 8,891
Other assets 78 78
Total assets $167,503 $55,669
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $13,168 $13,842
Notes payable, current portion 335 327
Obligations under capital leases,
current portion 112 105
Deferred revenue 2,497 1,873
Points redemption liability 13,004 9,640
Total current liabilities 29,116 25,787
Notes payable, less current portion 738 932
Obligations under capital leases,
less current portion 42 97
29,896 26,816
Commitments and contingencies
Stockholders equity:
Common stock 30 26
Additional paid-in capital 221,980 96,711
Deferred compensation (7,207) (9,406)
Accumulated deficit (77,196) (58,478)
Total stockholders' equity 137,607 28,853
Total liabilities and stockholders'
equity $167,503 $55,669
SOURCE: MyPoints.com, Inc.
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