About, Inc. Reports 240% Revenue Increase for 3Q00 Compared With 3Q99
Pro Forma Net Loss Excluding Non-Cash Charges Slashed 75% From Year Ago
Quarter Keeping Company on Track for Profitability in First Quarter 2001
NEW YORK, Oct. 23 /PRNewswire/ -- About, Inc. (NASDAQ:BOUT), the Internet's most complete targeted environment for marketers, today announced financial results for the three months ended September 30, 2000. About remains on track to report a profit, excluding non-cash charges, in the first quarter of 2001.
Revenue for the third quarter totaled $26.8 million, a 240% increase compared with revenue of $7.9 million in the year-ago quarter and a 33% increase compared with second quarter 2000 revenue of $20.1 million. Revenue for the nine months ended September 30, 2000 increased 350% to $62.8 million, compared with $14.0 million for the corresponding period in the prior year.
Pro Forma Net Loss Excluding Non-Cash Compensation and Goodwill Amortization Charges:
The pro forma net loss for the third quarter of 2000 was $3.2 million or ($0.18) per share. This compares with a pro forma net loss of $12.7 million, or ($1.04) per share, for the year-ago period and a pro forma net loss of $5.9 million, or ($0.33) per share, for the second quarter of 2000. The pro forma net loss for the nine months ended September 30, 2000, was $16.6 million, or ($0.94) per share, compared with a pro forma net loss of $41.1 million, or ($3.73) per share, for the comparable period in 1999.
Cash, cash equivalents and investments totaled $133.8 million at September 30, 2000.
"All Internet models are not created equally and we prove with each quarter's results that ours is special and that it works," commented Scott Kurnit, Chairman & CEO. "With a core of 700 highly targeted environments that keeps expanding to include a diverse offering of marketing vehicles, About is unmatched in its ability to provide complete, integrated solutions for marketers. Combined with our proven ability to execute quickly and efficiently, About is the Internet's leader in targeted marketing."
Strong Audience Growth
-- Company measurement systems report total users increased to
60.0 million in September 2000, compared with 44.9 million in June
2000.
-- Media Metrix ranks About as the 7th largest web property in the U.S.
during September 2000.
-- Average daily page views increased 48% to 34.1 million in September
2000, compared with 23.0 million in June 2000.
Targeted Offering Proves Effective
-- The number of clients on About increased to 4,116 from 1,846 at the end
of the second quarter. In the most recent quarter, Sprinks customers
accounted for more than 3,000 clients, up from more than 1,000 in the
second quarter.
-- The number of targeted site sales increased to 402 of About's 700 topic
specific sites, compared with 306 targeted site sales in the second
quarter of 2000.
-- About grew the number of partners in its Luna program by 75% during the
quarter, selecting more than 400 new Luna partners. The total number
of Luna partners is now more than 1,100.
Direct Marketing Arm Producing Strong Growth
-- Subscriptions grew 60% to 13.6 million in September 2000, from
8.5 million in June 2000.
-- About Direct sent 150 million messages during the third quarter,
compared with 90 million in the second quarter.
Sprinks Gaining Speed
-- Since launching in May 2000, Sprinks has grown rapidly, demonstrating
About's ability to leverage its content and user base to offer
marketers a variety of targeted solutions.
-- At the end of September, Sprinks had more than 3,000 advertisers,
compared with more than 1,000 at the end of June.
-- The average cost per click (CPC) of a Sprinks link on GuideSites was
$0.23 at the end of September.
Continued Expansion of the Platform
-- About formed ABZ, which building on the expertise About has established
with its consumer offering, is positioned to become a leading content
aggregator and outsourcer in the B2B space. The ABZ product is
showcased on About's newly launched Industry Network. With news feeds,
market research, company profiles and expert Q&A, the 30 verticals now
enable About to touch users where they live, work and play.
-- About entered into a joint venture with Recruit Co., LTD., Japan's
largest information publisher, to launch a Japanese service in the
first quarter of 2001.
-- About launched services for Australia, Ireland and India adding to its
successful Canada and UK services.
-- About's "How To" content is now accessible on wireless devices through
GoAmerica.
About will hold a conference call today at 5:00 p.m. Eastern to discuss the contents of this release. Followers of About are invited to listen to the call live over the Internet on the Investor Relations section of the About.com site at investors.about.com.
About
The Human Internet(TM)
About is the Internet's most complete targeted environment for marketers. With more than 700 topic sites, each overseen by a professional Guide, the About Network provides customers with an experience unlike any other on the Web-including the Internet's best link directories, original content, community features and commerce opportunities. Media Metrix (September 2000) ranks About.com as the 7th largest Web Property. More information on the company can be found on its Web site at about.com
This news release contains forward-looking statements that involve risks and uncertainties regarding About. Investors are cautioned that such results or events predicted in these statements may differ materially from actual future events or results. Factors that could cause actual events or results to differ from anticipated events or results include the company's limited operating history, history of losses and anticipation of continued losses, potential volatility of quarterly operating results, and other risks that are contained in About's reports and documents filed from time to time with the Securities and Exchange Commission.
About, Inc.
Consolidated Statements of Operations
Unaudited
(in thousands, except share and per share amounts)
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
Revenues $26,819 $7,884 $62,755 $13,958
Cost of revenues 10,327 4,090 23,466 9,336
Non-cash compensation 5 5 3,049 3,626
Gross profit 16,487 3,789 36,240 996
Operating expenses:
Sales and marketing 12,341 12,506 34,675 36,290
Product development 4,507 2,258 13,973 5,191
General and
administrative 5,038 2,430 14,021 5,704
Amortization of
goodwill 11,109 206 26,326 240
Non-cash compensation 284 242 665 857
Total operating
expenses 33,279 17,642 89,660 48,282
Loss from operations (16,792) (13,853) (53,420) (47,286)
Other income, net 2,168 680 6,800 1,499
Net loss $(14,624) $(13,173) $(46,620) $(45,787)
Net loss excluding
non-cash compensation
and amortization
of goodwill $(3,226) $(12,720) $(16,580) $(41,064)
Pro forma net
loss per share:
Including non-cash
compensation and
amortization
of goodwill $(0.80) $(1.08) $(2.64) $(4.16)
Excluding non-cash
compensation and
amortization
of goodwill $(0.18) $(1.04) $(0.94) $(3.73)
Pro forma weighted
average shares
outstanding (1) 18,256,770 12,205,151 17,676,390 10,996,836
Historical net loss
per common share $(0.80) $(1.08) $(2.64) $(5.08)(2)
Weighted average shares
outstanding 18,256,770 12,205,151 17,676,390 9,139,091
(1) Pro forma weighted average shares outstanding for all periods
presented assumes that the 6,139,640 shares of Common Stock issued
upon the automatic conversion of the Company's Preferred Stock in
connection with the initial public offering, March 24, 1999, had been
outstanding during each period.
(2) Includes cumulative dividends and accretion of $660 on the Company's
convertible preferred stock through the date of the initial public
offering on March 24, 1999.
About, Inc.
Consolidated Condensed Balance Sheets
(in thousands)
September 30, December 31,
2000 1999
(Unaudited)
Assets
Cash, cash equivalents and investments $133,780 $175,914
Accounts receivable, net 15,067 11,067
Property and equipment, net 22,716 9,401
Goodwill, net 111,262 39,184
Other assets 15,741 6,515
Total assets $298,566 $242,081
Liabilities and Stockholders' Equity
Liabilities:
Accounts payable and accrued expenses $16,376 $13,421
Other liabilities 2,425 3,500
Total liabilities 18,801 16,921
Total stockholders' equity 279,765 225,160
Total liabilities and stockholders' equity $298,566 $242,081 SOURCE About, Inc.
-0- 10/23/2000
/CONTACT: Investors - Kelly Lofts, 212-204-1587, klofts@about-inc.com, or Media - Tabatha Sturm, 212-204-1636, tabatha@about-inc.com, both of About, Inc./ |
