Autoweb.com Announces Q3 99 Financial Results
21 October 1999
Autoweb.com Announces Q3 99 Financial Results
Record Quarterly Revenues Up 156 Percent from a Year Ago
SANTA CLARA, Calif., Oct. 21 -- Autoweb.com, Inc.
, the leading consumer automotive Internet service, today
announced financial results for its third quarter ended September 30, 1999.
Net revenues for the third quarter of 1999 were a record $8.4 million, up
20 percent from net revenues of $7.0 million reported in the second quarter of
1999 and up 156 percent from the third quarter of 1998. For the nine months
ended September 30, 1999, revenues were $21.2 million, a 157 percent increase
from the same period in 1998.
Net loss for the third quarter was $4.4 million, compared with a net loss
of $3.0 million in the second quarter of 1999 and a net loss of $1.9 million
in the third quarter of 1998. Net loss per share in the third quarter of 1999
was $0.18 compared with a net loss per share of $0.12 for the second quarter
of 1999, and a net loss per share of $0.24 (a net loss per share of $0.10 on a
pro-forma basis) for the third quarter of 1998. For the nine months ended
September 30, 1999 and 1998, net losses were $9.7 million and $6.1 million,
respectively, and net loss per share was $0.49 ($0.39 on a pro-forma basis)
and $0.78 ($0.33 on a pro-forma basis), respectively. Pro-forma net loss per
share amounts assume conversion of preferred shares to common at the beginning
of the period and common shares issued in the Initial Public Offering
outstanding for all of 1999.
"We are extremely pleased with the third quarter's results, including
record revenues and traffic to the site. We made progress in key strategic
areas: building significant partnerships, delivering more choices through
enhanced product, service and channel offerings, and developing closer
relationships with the automotive manufacturers," said Dean DeBiase,
president, chairman and chief executive officer of Autoweb.com. "We bought
Automotive Information Center (AIC), the leading provider of unbiased online
automotive content for auto manufacturers, consumers, the media and industry
portals. AIC provides Autoweb.com with the industry's best automotive data and
decision-making tools, and its content and data licensing business with
manufacturers provide significant opportunities to deepen our industry
relationships.
"When you visit our new site, which we recently launched, you will see the
power of AIC data, which we rapidly integrated into all site areas," continued
DeBiase. "We have received favorable site reviews from dealers, consumers,
manufacturers and advertisers.
"Additionally, we established new relationships with leading consumers
brand partners that provide significant co-branding opportunities, generate
additional revenue, and help expand the choices available to our consumers.
Just yesterday, we announced a partnership with Intuit to offer unique online
auto insurance to our consumers through Quicken(R) Insurance. Consumers now
can come to Autoweb for insurance information and competitive real-time quotes
from more than 45 carriers," said DeBiase.
Earlier in the quarter, Autoweb.com signed a cross-promotional marketing
agreement with Citibank on its popular Driver's Edge credit card. Citibank is
marketing the card with the Autoweb.com logo exclusively to its four million
Driver's Edge users.
"We also continued to execute on our multi-channel commerce strategy to
deliver consumers alternative ways of buying a car over the Internet. We have
begun market trials on our Direct-to-Consumer program, in which we act as a
concierge to carry out as much of the transaction as a consumer desires,"
continued DeBiase. "And, the launch of our risk-free Auto Auctions channel
positions us further as the one-stop online automotive provider in partnership
with auto dealers and manufacturers. We have clearly differentiated our
auction offering to lower the risk and provide consumer trust and confidence
that they are not buying somebody else's problem."
Third Quarter 1999 Conference Call
Autoweb's third quarter 1999 conference call will be held on Thursday,
Oct. 21 at 1:30 p.m. PT/ 4:30 p.m. ET. To participate in the call, please
dial 312-470-0008. A replay of the call will be available for 48 hours at
402-998-1083. To listen to the call over the Internet, please connect to:
http//:www.videonewswire.com/AUTOWEB/102199/. The Internet webcast will be
archived until November 21, 1999.
Safe Harbor Statement
The statements in this news release, other than the historical financial
information, may contain forward-looking statements that involve risks and
uncertainties that could cause actual results to differ from anticipated
results. Further information on risk factors that could affect the company's
results is detailed in the company's Registration Statement, as filed with the
Securities and Exchange Commission, the company's Form 10-Q for the quarter
ended March 31, 1999 and the quarter ended June 30, 1999, as filed with the
Securities and Exchange Commission, and the Form 10-Q for the quarter ended
September 30, 1999, to be filed with the Securities and Exchange Commission.
About Autoweb.com, Inc.
Autoweb.com is the leading consumer automotive Internet service, guiding
consumers through every stage of vehicle ownership. From research and buying,
to enjoying, maintaining and selling, Autoweb.com delivers everything
consumers want. Starting with the most comprehensive, unbiased automotive
research, Autoweb.com also provides the most options to buy new and used autos
through its auction, dealer referral and direct-to-consumer commerce channels.
Autoweb.com works with over 5,000 Member Dealers and other commerce partners
to provide the best experience at every stage of vehicle ownership. For more
information, please visit http://www.autoweb.com.
NOTE: Autoweb, Autoweb.com and associated logos are trademarks of
Autoweb.com, Inc. All other parties' trademarks or service marks are the
property of their respective owners.
Statements of Operations and Balance Sheets to follow.
AUTOWEB.COM, INC.
BALANCE SHEETS
(In thousands)
September 30, December 31,
1999 1998
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash, cash equivalents
and short term investments $60,247 $2,714
Accounts receivable, net 5,269 2,147
Prepaid expenses and other current assets 6,447 1,162
Total current assets 71,963 6,023
Property and equipment, net 1,753 1,162
Intangible assets, net 1,496 -
TOTAL ASSETS $75,212 $7,185
LIABILITIES, MANDATORILY REDEEMABLE CONVERTIBLE
PREFERRED STOCK, AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable and other accrued expenses $6,818 $ 2,557
Accrued payroll and related expenses 1,979 624
Deferred revenue 591 1,739
Current portion of notes
and lease obligations payable 334 303
Total current liabilities 9,722 5,223
Notes and lease obligations payable,
net of current portion 430 654
Total liabilities 10,152 5,877
MANDATORILY REDEEMABLE
CONVERTIBLE PREFERRED STOCK -- 12,969
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock 18 2
Additional paid-in capital 99,222 11,371
Unearned stock-based compensation (6,808) (5,406)
Accumulated deficit (27,372) (17,628)
Total stockholders' equity (deficit) 65,060 (11,661)
TOTAL LIABILITIES, MANDATORILY REDEEMABLE
CONVERTIBLE PREFERRED STOCK, AND
STOCKHOLDERS' EQUITY (DEFICIT) $75,212 $7,185
AUTOWEB.COM, INC.
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
REVENUES
Net revenues $8,422 $3,287 $21,187 $8,254
Cost of net revenues 841 245 2,141 512
Gross profit 7,581 3,042 19,046 7,742
OPERATING EXPENSES:
Sales and marketing 8,691 3,546 21,071 9,886
Product development 1,664 124 2,843 390
General and administrative 1,928 990 4,856 2,903
Stock-based compensation 452 11 1,654 26
Total operating expenses 12,735 4,671 30,424 13,205
LOSS FROM OPERATIONS (5,154) (1,629) (11,378) (5,463)
Interest and other
income (expense), net 804 (33) 1,634 (33)
NET LOSS (4,350) (1,662) (9,744) (5,496)
Accretion of mandatorily
redeemable convertible preferred
stock to redemption value -- (251) -- (591)
NET LOSS ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(4,350) $(1,913) $(9,744)
$(6,087)
NET LOSS PER SHARE:
Basic and diluted $(0.18) $(0.24) $(0.49) $(0.78)
Weighted average
shares - basic and diluted 24,842 7,853 19,872 7,841
PRO FORMA NET LOSS PER SHARE:
Basic and diluted -- $(0.10) $(0.39) $(0.33)
Weighted average shares
- basic and diluted (A) -- 17,489 24,750 16,581
(A) Assumes conversion of preferred shares to common shares at the
beginning of the period.
The 1999 amounts also assume common shares issued in the Company's Initial
Public Offering outstanding from the beginning of the period.