Autobytel.com Announces First Quarter Results
29 April 1999
Autobytel.com Announces First Quarter Results
Record Revenues, Purchase Requests and Paying Dealers Power Autobytel.com's
16th Consecutive Quarter of Sequential Revenue Growth
IRVINE, Calif., April 29 -- Autobytel.com inc.
, the premier Internet car-buying service, today announced
record revenues for its first quarter ended March 31, 1999. Revenues grew 73%
to $8.0 million, up from the $4.6 million reported for the same quarter a year
ago. The Company also reported a narrower first quarter net loss of $6.1
million, or $0.68 per share, compared with a net loss of $6.9 million, or
$0.83 per share, recorded in the comparable period a year ago.
"Autobytel.com achieved strong growth in first quarter purchase requests
for car purchases, which expanded 39% from last quarter to a record 489,000,"
said Mark Lorimer, President and CEO of autobytel.com. "More car buyers
purchase a new or a pre-owned vehicle through autobytel.com than anywhere else
on the Web." According to the March 25, 1999 press release announcing the
J.D. Power and Associates 1999 Dealer Satisfaction with Online Buying Services
Study, autobytel.com "generates nearly as many new-vehicle sales as its two
closest competitors combined." According to this study, autobytel.com ranks
highest in dealer satisfaction for the second year in a row, generating the
Online car buying industry's highest volume of purchase requests for both new
and pre-owned vehicles as well as the highest closing ratio.
Building upon its leadership position in dealer satisfaction as well as
the 39% sequential increase in purchase requests, autobytel.com monthly
subscription fees per dealer rose to a record level in the first quarter. In
addition, 174 paying dealers joined the autobytel.com network in the first
quarter, which expanded by 45% to a record level, compared to a year ago.
"In addition to completing our initial public offering, during the first
quarter, we progressed in building our international presence, launching
Autobytel.se in Sweden, preparing for the second quarter launch of
Autobytel.co.uk in the United Kingdom, and signing a letter of intent to
launch Autobytel.jp in Japan with several Japanese partners," explained
Lorimer. "We also expanded our pre-owned vehicle sales business in the first
quarter, extending our CyberStore program participation outside of our new car
dealer network." The CyberStore website enables consumers to buy and dealers
to sell pre-owned vehicles through the autobytel.com website. All vehicles
posted in the pre-owned CyberStore must include a digital image and come
complete with a 72-hour money-back guarantee and a 90-day warranty. The
number of pre-owned units posted to our CyberStore inventory increased 20%
during the quarter, fueled in part by extending the program eligibility to
previously excluded non-Autobytel.com new car dealers. As part of its effort
to expand its CyberStore inventory of pre-owned vehicles, Autobytel.com signed
an agreement with a major car rental company to sell vehicles retired from its
fleet.
"The record revenue of our first quarter illustrates the continuing
success of our strategy to emphasize quality and value for both the consumer
and the dealer throughout the entire chain of events leading up to a vehicle
purchase," noted Lorimer. "The continuing goal of our distribution model is
to eliminate some of the inherent inefficiencies found in the car sales
process, generating savings for consumers by reducing sales costs for car
dealers. Autobytel.com's high brand awareness and targeted marketing programs
attract serious car buyers to the Autobytel.com web site, where they find all
of the tools needed to obtain a fast, pleasant and low-cost buying experience
for the car they really want. On the dealer side of the equation, the
Company's 2,772 dealers receive extensive training in facilitating the
Internet sales process, followed up by autobytel.com's unique combination of
on-line as well as field support. Autobytel.com's focus on dealer development
allows us to deliver an unparalleled purchase experience to the Internet car
buyer, as well as lower cost and a higher closing ratio for the dealership."
During the month of March 1999, traffic on the Autobytel.com website grew
to 19.2 million page views, up 21% from the month of December 1998, compared
to an increase of 8% in total Internet usage over the same periods as reported
by MediaMetrix. A page view is defined as one electronic page of information
displayed in response to a user request. Also, the number of unique visitors
per month attracted to its website grew 48% from the month of December 1998 to
over 1 million in the month of March 1999.
About autobytel.com inc.
Irvine, CA-based autobytel.com inc. ( http://www.autobytel.com ) is an
internationally branded Internet-based purchasing program for new and
certified pre-owned vehicles and related consumer services, including
automotive financing, leasing, a rewards program, and insurance.
Autobytel.com has assisted over 2.5 million car buyers since its inception in
1995. In 1999, Autobytel.com was ranked #1 in Dealer Satisfaction with Online
Buying Services for the second year in a row.* Autobytel.com's North American
Accredited Dealer Network includes over 2,700 dealerships, representing every
major automotive manufacturer. Autobytel.com is a registered service mark of
autobytel.com inc.
* J.D. Power and Associates 1998 -- 1999 Dealer Satisfaction With Online
Buying Services Studies(SM). 1999 study conducted among dealership Internet
specialists who completed 1,024 individual evaluations.
The statements contained in this press release and the attached
supplemental information that are not historical facts are forward-looking
statements under the federal securities laws. These forward-looking
statements are not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict. Actual outcomes
and results may differ materially from what is expressed in, or implied by,
such forward-looking statements. Autobytel.com undertakes no obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events or otherwise. Among the important factors that
could cause Autobytel.com's actual results to differ materially from those
expressed in, or implied by, the forward-looking statements are changes in
general economic conditions and increased or unexpected competition.
autobytel.com inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(Unaudited)
Three Months Ended March 31,
1998 1999
Revenues $4,632 $8,032
Operating expenses:
Sales and marketing 8,459 9,957
Product and technology
development 1,895 2,366
General and administrative 1,346 1,592
Stock based compensation -- 225
Total operating expenses 11,700 14,140
Loss from operations (7,068) (6,108)
Interest and other income, net 185 8
Loss before provision for income taxes (6,883) (6,100)
Provision for income taxes 15 41
Net loss $(6,898) $(6,141)
Basic and diluted net loss per share $(0.83) $(0.68)
Shares used in computing basic and
diluted net loss per share 8,324,443 9,029,203
autobytel.com inc.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
ASSETS
December 31, March 31,
1998 1999
(unaudited)
Current assets:
Cash and cash equivalents $27,984 $99,818
Accounts receivable, net 2,315 2,694
Other current assets 1,353 1,487
Total current assets 31,652 103,999
Property and equipment, net 2,208 2,019
Other assets 347 345
Total assets $34,207 $106,363
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $3,830 $9,343
Deferred revenue 4,008 4,239
Other current liabilities 378 629
Total current liabilities 8,216 14,211
Deferred rent 123 122
Total liabilities 8,339 14,333
Total stockholders' equity 25,868 92,030
Total liabilities and
stockholders' equity $34,207 $106,363