Fourth Quarter 2000 Revenues Increased 47% Over Same Period 1999
Page Views Rose to 831 Million in Q4 2000 Compared to 525 Million in Q4 1999
SAN FRANCISCO, Jan. 30 /PRNewswire/ --
MarketWatch.com, Inc. (Nasdaq: MKTW), a leading interactive financial media
company, today reported record calendar year 2000 revenues of $53.9 million,
an improvement of 116% over revenues of $24.9 million for the prior year.
Revenues of $14.7 million for the three months ended December 31, 2000
increased 47% over revenues of $10.0 million for the same period of 1999.
The Company's domestic pro forma net loss for the fourth quarter 2000,
excluding amortization of goodwill and intangibles and its share in the
results of its European joint venture, was $8.8 million, or $0.53 per share,
compared to $8.9 million, or $0.64 per share, in the same period in 1999, and
compared to First Call analysts' consensus of $0.66 per share. The domestic
pro forma net loss included $5.4 million and $4.4 million of CBS in-kind
advertising expense for the fourth quarter of 2000 and 1999, respectively.
Fourth quarter 2000 net loss was $24.3 million, or $1.47 per share, compared
to $22.0 million, or $1.58 per share, for the same period of 1999.
The Company's domestic pro forma net loss for calendar year 2000,
excluding amortization of goodwill and intangibles and its share in the
results of its European joint venture, was $33.9 million, or $2.16 per share,
as compared to $30.1 million, or $2.32 per share for the same period in 1999.
Included in the domestic proforma net loss was $17.4 million and $14.0 million
of CBS in-kind advertising expense for calendar year 2000 and 1999,
respectively. Net loss for the year ended December 31, 2000 was $91.3 million,
or $5.83 per share, compared to $60.9 million, or $4.68 per share, for the
same period of 1999.
"The outstanding growth of our licensing revenues has offset a decline in
our Internet advertising revenues in the second half of the year, primarily as
a result of the shakeout of Internet companies," said Chairman and Chief
Executive Officer Larry Kramer. "Our diversified media operations -- including
television, radio and print -- helped us come close to our overall revenue
goals. Our solid bottom-line performance reflects our ongoing close management
of costs across the Company."
"We're in a strong position entering 2001 with the Number One franchise in
the financial news category reinforced by an outstanding brand identity,"
Kramer added. "We believe we can grow during these uncertain times by using
our leadership position to claim more market share."
Diversity Of Revenue Lines Pays Benefits
Revenues rose to $14.7 million in the fourth quarter of 2000, with
advertising revenues of $8.7 million in the quarter compared to $6.9 million
for the same period a year ago. Licensing revenues of $5.2 million improved
148% over the fourth quarter of 1999, and the Company's world-class tools and
news products are now available in 17 countries worldwide. Licensing revenues
accounted for 35% of total revenues in the fourth quarter, with other revenues
-- primarily from the Company's television and radio operations
-- representing 5% of the total.
"The slowdown in advertising from dotcoms had a negative impact on
ad-supported Web sites," Kramer said. "Still, we realized the benefits of our
leading Internet ranking with renewals from companies such as Ameritrade and
Scottrade, along with a resumption in advertising from CSFBdirect. We also
continued to attract non-financial advertisers, including United Airlines,
Nortel, Cadillac and Dell Computers in the third and fourth quarters."
MarketWatch.com's licensing business more than doubled its customer base
over 1999, and added clients throughout the world, most recently in Spain and
Belgium. The Company entered new licensing relationships with AIG,
Business.com, Excite, NBCi and Readers' Digest, among others, while
significantly expanding existing sales agreements with Citibank, PNC Bank,
Schwab, E*TRADE and other popular brokerage and banking sites.
Strong Site Traffic Continues
MarketWatch.com continues its leadership position in the financial news
category, according to the latest results from Media Metrix and Nielsen
Netratings. Fourth quarter page views were 831 million, a 58% increase over
the 525 million reported for the fourth quarter of 1999. Average monthly
unique users reached 8.4 million in the fourth quarter, compared to
6.9 million for the same period of last year, as measured by DoubleClick.
"We've solidified our position as the category leader in reach, despite
the fact that the entire sector experienced fallout from the market's
corrections over the course of the year," Kramer said. "Importantly, we saw
increases in traffic and user volume in the fourth quarter."
Operating Results Improve
Operating expenses, excluding the amortization of intangibles, as a
percentage of revenues, improved considerably during the year to 130% of
revenues compared to 189% for the calendar year 1999. In addition, gross
margins increased to 61% during 2000 from 60% in the prior year.
"We accomplished this while continuing to expand our lines of business and
invest in our infrastructure," Kramer pointed out. "We ended the year with
266 total employees compared to 202 at year-end 1999, sizing our editorial,
licensing and advertising sales organizations to the appropriate levels to
continue to drive growth. We've also continued to invest in technology,
migrating our data centers and internal information from Data Broadcasting
Corporation to maximize the management of our systems."
The Company had $45.4 million in cash at year-end 2000, with cash used in
operations during the entire fourth quarter totaling $503,000. Accounts
receivable at December 31, 2000 was $11.8 million compared to $13.0 million at
the end of the third quarter, reflecting significant cash collection efforts
to decrease days sales outstanding at year end.
"We've shown we can manage our cash and our expenses even while we're
expanding our businesses," Kramer said. "Our current cash reserves are
sufficient and we expect to generate positive cash flow from operations, which
is currently anticipated by the end of this year."
FTMarketWatch.com Draws European Users
FTMarketWatch.com, the joint venture Web site between MarketWatch.com,
Inc. and the Financial Times Group Limited, continued to attract visitors
during the fourth quarter 2000. Selected as the "Best Investment News Site" by
Investors' Week online, the FT MarketWatch.com site served 300,000 unique
users and 5.1 million page views in December 2000, up from 200,000 unique
users and 3 million page views in September 2000.
Print Operations Expands
MarketWatch.com more than doubled the audience for its print content by
becoming the primary business news provider for the new San Francisco Examiner
in November 2000. The Company made its print debut in September of this year
as the primary business news provider for the Daily News Express, an evening
commuter publication of the New York Daily News.
"Here again, we're leveraging content that has been produced by our
editorial staff and packaging it for the print audience, introducing us to a
new audience and generating additional revenues," Kramer said.
Wireless Distribution Grows
MarketWatch.com content became available on the Palm(TM) Mobile Internet
Kit for Palm Handheld communications devices in November 2000, along with the
3Com Corporation's new Internet appliance, Audrey. MarketWatch.com, with
agreements with AT&T Corp. Wireless Services Group, Palm, Inc. and Omnisky
Corporation, had 8.0 million views across wireless devices in 2000.
Broadcast & Radio Businesses Expand
The CBS MarketWatch Weekend show continues to gain in viewer popularity
and ended the year 2000 by being aired on 131 stations, representing more than
80% of the United States. The program is seen by more households than CNBC's
highest rated show and by more than 10 times the households viewing Bloomberg
Information Television.
The MarketWatch Radio Network added 18 affiliates in December of 2000 and
is now heard on 154 stations across the country, including the top 10 U.S.
markets, and reaches 11.5 million unduplicated listeners per week.
"We're steadily attracting viewers and listeners with enhanced
programming, and at the same time both our broadcast and radio operations are
becoming self-sustaining even as we invest in their expansion," Kramer added.
About MarketWatch.com, Inc.
MarketWatch.com, Inc., a leading interactive financial media company,
provides fast, relevant information via the Internet, television, radio and
print to help people make and save money. The Company operates leading
financial Internet Web sites at http://cbs.marketwatch.com and
http://www.bigcharts.com, and, in a joint venture with the Financial Times
Group Limited, launched its first international site in June 2000 at
http://www.ftmarketwatch.com. MarketWatch.com's financial news and tools are
licensed in custom-designed formats by major brokerages and Internet sites.
The Company produces CBS MarketWatch Weekend, covering more than 80% of the
U.S. on 131 CBS television stations, and daily economic reports on CBS
Television and Radio Network news programming. The MarketWatch.com financial
news reports, distributed by Westwood One, are heard in the top 10 U.S.
markets on 154 stations. In addition, MarketWatch.com provides print content
for the Daily News Express, a daily commuter newspaper edition of the New York
Daily News, and the new San Francisco Examiner.
Founded in 1997 and headquartered in San Francisco, MarketWatch.com has
facilities and bureaus in New York City, Minneapolis, Washington D.C.,
Los Angeles, Chicago, Boston, Atlanta, Dallas, Austin, Tokyo, Hong Kong and
London. The MarketWatch.com Web sites are ranked the number one financial news
destination, according to Media Metrix and Nielsen Netratings.
MarketWatch.com will hold a conference call today at 7:00 a.m. PST.
Investors will have the opportunity to listen to the real-time Web cast of
this call at http://ir.marketwatch.com/. Recordings will be available shortly
after the call at the above Web address. Investors also have the option of
calling 800-475-6701 (access code 541685) for the teleconference replay. This
will be available for approximately two weeks, beginning at 11:30 a.m. PST on
January 30, 2001.
Notice Regarding Forward-Looking Statements
This media release contains forward-looking statements that involve risks
and uncertainties. MarketWatch.com's actual results may differ materially from
those anticipated in these forward-looking statements, which include
statements as to the Company's ability to achieve future financial goals and
the Company's expectations as to its cash needs and future positive cash flow.
Factors that might contribute to such differences include, among others, the
Company's ability to attract advertisers from industries other than the
Internet related industries and the financial industries; the effect of
seasonal or other trends in the Internet industry and advertising sales;
levels of renewals from licensing customers and the Company's ability to
attract new licensing customers; the Company's dependence on its direct sales
force with respect to its advertising and licensing revenues; the Company's
ability to attract and retain key personnel, including editorial, technical
and sales personnel, and the productivity levels of these personnel;
competition, which could lead to pricing pressure; the Company's evolving
business, which makes it difficult to evaluate future prospects; unforeseen
changes in expense levels; whether the Company's other services will be
accepted by sufficient numbers of consumers in order for it to be attractive
to advertisers and non-Internet media outlets, such as international, radio,
television, and the Company's ability to derive revenues from those sources;
the Company's ability to manage its growth; and the Company's ability to
develop on a timely basis, as well as consumer acceptance of, the Company's
new services or tools. More information about these and other potential
factors, which could affect the Company's business and financial results, is
indicated in the Company's Annual Report on Form 10-K for the year ended
December 31, 1999, as well as the other reports it files with the Securities
Exchange Commission. These forward-looking statements are based on information
available to the Company on the date hereof. MarketWatch.com, Inc. assumes no
obligation to publicize the results of any potential revision of these
forward-looking statements.
MarketWatch.com, Inc.
Condensed Consolidated Statements of Operations
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
(unaudited)
Net revenues
Advertising $8,675 $6,883 $34,952 $18,033
Licensing 5,207 2,097 15,809 5,262
Other 788 1,024 3,146 1,640
Total net revenues 14,670 10,004 53,907 24,935
Cost of net revenues 5,612 3,768 21,012 9,901
Gross profit 9,058 6,236 32,895 15,034
Operating expenses:
Product development 2,211 1,647 8,725 4,762
General and administrative 3,671 2,727 14,211 8,948
Sales and marketing 7,779 7,049 29,718 19,434
CBS in-kind advertising 5,351 4,426 17,412 13,996
Purchased in-process research
and development -- -- -- 200
Amortization of Goodwill 12,833 12,850 51,382 29,984
Total operating expenses 31,845 28,699 121,448 77,324
Loss from operations (22,787) (22,463) (88,553) (62,290)
Interest income 939 463 2,285 1,412
Loss in joint venture (2,459) -- (4,995) --
Net loss $(24,307) $(22,000) $(91,263) $(60,878)
Basic and diluted net loss
per share $(1.47) $(1.58) $(5.83) $(4.68)
Weighted average shares
used to compute basic and
diluted net loss per share 16,541 13,902 15,659 13,004
MarketWatch.com, Inc.
Unaudited Domestic Pro Forma Condensed Consolidated Statements of Operations
(in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Net revenues
Advertising $8,675 $6,883 $34,952 $18,033
Licensing 5,207 2,097 15,809 5,262
Other 788 1,024 3,146 1,640
Total net revenues 14,670 10,004 53,907 24,935
Cost of net revenues 5,362 3,518 20,012 9,318
Gross profit 9,308 6,486 33,895 15,617
Operating expenses:
Product development 2,211 1,647 8,725 4,762
General and administrative 3,671 2,727 14,211 8,948
Sales and marketing 7,779 7,049 29,718 19,434
CBS in-kind advertising 5,351 4,426 17,412 13,996
Total operating expenses 19,012 15,849 70,066 47,140
Loss from operations (9,704) (9,363) (36,171) (31,523)
Interest income 939 463 2,285 1,412
Net loss $(8,765) $(8,900) $(33,886) $(30,111)
Basic and diluted net loss
per share $(0.53) $(0.64) $(2.16) $(2.32)
Weighted average shares
used to compute basic and
diluted net loss per share 16,541 13,902 15,659 13,004
NOTE: The above unaudited domestic pro forma condensed consolidated
statements of operations exclude the effects of the following:
-- Amortization of purchased technology, goodwill and intangibles
-- Loss in joint venture
MarketWatch.com, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31,
2000 1999
Assets
Current assets:
Cash, cash equivalents and short
term investments $45,356 $14,479
Accounts receivable, net 11,838 8,073
Prepaid expenses 2,497 3,699
Total current assets 59,691 26,251
Property and equipment, net 10,846 5,035
Intangible assets, net 1,129 2,683
Goodwill, net 72,010 122,840
Other assets 564 46
Total assets $144,240 $156,855
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $10,635 $7,363
Deferred revenue 188 344
Total current liabilities 10,823 7,707
Stockholders' equity:
Preferred stock -- --
Common stock 166 139
Additional paid-in capital 319,425 231,746
Deferred compensation -- (413)
Contribution receivable (21,539) (8,952)
Accumulated deficit (164,635) (73,372)
Total stockholders' equity 133,417 149,148
Total liabilities and
stockholders' equity $144,240 $156,855
SOURCE MarketWatch.com, Inc.
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Related links:
http://cbs.marketwatch.com
CONTACT:
Joan P. Platt, Chief Financial Officer of
MarketWatch.com, Inc., 415-733-0500, or
investor_relations@marketwatch.com
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