Autoweb.com Announces Q4 and Year End 1999 Results
Records Record Losses
27 January 2000
Q4 99 Revenues Up 142% Year to Year
Q4 99 Losses Up $2.1 million Year to Year SANTA CLARA, Calif. -- Autoweb.com, Inc. today announced financial results for its fourth quarter and fiscal year ended Dec. 31, 1999. Net revenues for the fourth quarter of 1999 were a record $11.6 million, up 38 percent from net revenues of $8.4 million reported in the third quarter of 1999 and up 142 percent from net revenues of $4.8 million in the fourth quarter of 1998. Net loss for the fourth quarter of 1999 was $8.4 million, compared with a net loss of $4.4 million in the third quarter of 1999, and a net loss of $6.3 million in the fourth quarter of 1998. Fourth quarter loss per share, including non-cash stock-based compensation charges and amortization of goodwill and other intangibles, was $0.33 on approximately 25.4 million shares. Loss per share in the fourth quarter of 1999, before stock-based compensation charges and amortization of goodwill and other intangibles, was $0.24 compared with a loss per share of $0.15 on approximately 24.8 million shares in the third quarter of 1999. For the year, net revenues were $32.8 million, up 152 percent from the $13.0 million reported in 1998. Net loss for 1999 was $18.2 million compared with $12.4 million reported in 1998. Pro forma net loss per share for the year, including non-cash stock-based compensation charges and amortization of goodwill and other intangibles, was $0.72 on approximately 25.1 million shares. Pro forma net loss per share, before stock-based compensation charges and amortization of goodwill and other intangibles, was $0.56, compared with $0.41 on approximately 16.7 million shares in 1998. 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. When the term "net loss" is used in the text of this press release, it is defined as net loss attributable to common stockholders. Fourth Quarter 1999 Conference Call Autoweb's fourth quarter 1999 conference call will be held on Thursday, Jan. 27 at 1:30 p.m. PT/4:30 p.m. ET. To participate in the call, please dial 312-470-0009. A replay of the call will be available for one week at 402-220-0327. AUTOWEB.COM, INC CONDENSED BALANCE SHEET (In thousands, except share amounts) December 31, 1999 1998 ASSETS Current assets: Cash, cash equivalents and short term investments $32,834 $2,714 Accounts receivable, net 8,415 2,147 Prepaid expenses and other current assets 9,382 1,162 Total current assets 50,631 6,023 Property and equipment, net 2,462 1,162 Intangible assets, net 18,377 -- Total assets $71,470 $7,185 LIABILITIES, MANDATORILY REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' (DEFICIT) EQUITY Current liabilities: Accounts payable and other accrued expenses $6,303 $2,557 Accrued payroll and related expenses 2,582 624 Deferred revenue 935 1,739 Current portion of notes and lease obligations payable 326 303 Total current liabilities 10,146 5,223 Notes and lease obligations, net of current portion 361 654 Total liabilities 10,507 5,877 Mandatorily redeemable convertible preferred stock -- 12,969 Stockholders' (deficit) equity 60,963 (11,661) Total liabilities, mandatorily redeemable convertible preferred stock and stockholders' (deficit) equity $71,470 $7,185 AUTOWEB.COM, INC. CONDENSED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Three Months Year Ended December 31, Ended December 31, 1999 1998 1999 1998 Net revenues $11,605 $4,787 $32,792 $13,041 Cost of net revenues 1,150 330 3,290 842 Gross profit 10,455 4,457 29,502 12,199 Operating expenses: Sales and marketing 12,132 3,733 33,203 13,619 Product development 2,440 196 5,103 586 General and administrative 2,403 915 7,224 3,818 Stock-based compensation 589 5,575 2,243 5,601 Amortization of goodwill and other intangibles 1,729 -- 1,943 -- Total operating expenses 19,291 10,419 49,716 23,624 Loss from operations (8,838) (5,962) (20,214) (11,425) Interest and other income (expense), net 427 (26) 2,061 (59) Net loss (8,411) (5,988) (18,153) (11,484) Accretion of mandatorily redeemable convertible preferred stock to Redemption value -- (299) -- (890) Net loss attributable to common stockholders $(8,411) $(6,287) $(18,153) $(12,374) Net loss per share: Basic and diluted $(0.33) $(0.80) $(0.85) $(1.58) Weighted average shares - basic and diluted 25,444 7,877 21,425 7,850 Pro forma net loss per share: Basic and diluted $(0.33) $(0.35) $(0.72) $(0.69) Weighted average shares - basic and diluted (A) 25,444 18,223 25,074 16,669 Calculation of pro forma, as adjusted, net loss per share: (B) Net loss attributable to common stockholders, as adjusted $(6,093) $(712) $(13,967) $(6,773) Basic and diluted $(0.24) $(0.04) $(0.56) $(0.41) Weighted average shares - basic and diluted (A) 25,444 18,223 25,074 16,669 (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. (B) Adjusted to exclude non-cash stock-based compensation and amortization of intangibles.