Autoweb.com Announces Q1 2000 Financial Results
25 April 2000
Autoweb.com Announces Q1 2000 Financial Results Record Revenues Up 177 Percent from Q1 1999
SANTA CLARA, Calif., April 25 Autoweb.com, Inc. (Nasdaq: AWEB) today announced financial results for its
first quarter ended March 31, 2000.
Net revenues for the first quarter of 2000 were a record $15.8 million, up
177 percent from net revenues of $5.7 million reported in the first quarter of
1999 and up 36 percent from net revenues of $11.6 million in the fourth
quarter of 1999. Net loss for the first quarter of 2000 was $7.2 million,
compared to a net loss of $2.4 million in the first quarter of 1999, and a net
loss of $8.4 million in the fourth quarter of 1999.
First quarter loss per share, including non-cash stock-based compensation
charges and amortization of intangibles, was $0.28 on approximately
25.5 million shares, compared to $0.33 on approximately 25.4 million shares in
the fourth quarter of 1999. Loss per share in the first quarter of 2000,
before stock-based compensation charges and amortization of intangibles, was
$0.20 compared with a loss per share of $0.24 in the fourth quarter of 1999.
"We are pleased with this quarter's record traffic and revenues, as well
as our reduced losses. Overall, we made great progress as a leading automotive
Business-to-Business-to-Consumer company," said Dean DeBiase, chairman and
chief executive officer of Autoweb.com. "We are successfully building a
consumer marketplace where leading automotive brands and dealers can
effectively present their products and services, and where consumers can shop,
the way they want, for cars and related services.
"To become the largest online automotive service, we are focused on
driving significant traffic to our site and providing the most popular car
buying processes," DeBiase continued. "Since the end of the quarter, we have
made additional progress by leveraging our premier automotive content and
tools to build alliances with two new industry partners. The first is a
strategic agreement with CarsDirect.com, the leading direct e-tailer, which
enables Autoweb to cost-effectively service a new segment of consumers who
want to make the entire purchase transaction online.
"We also announced a broad-based relationship with Lycos to expand our
reach and to address the strategic online needs of the auto industry, which is
now focused on using the Internet to sell more cars. We are jointly building
and running 'The Lycos/Autoweb Channel' throughout the Lycos network. We are
also jointly pursuing strategic marketing opportunities with vehicle
manufacturers that go 'beyond' advertising banners and allow us to share in
the revenues generated. It's a great example of how, through the
infrastructure partner component of our strategy, we are developing the next
generation of automotive e-commerce that ties auto manufacturers, dealers,
portals and Autoweb together," said DeBiase.
Financial Position and Profitability
"CarsDirect and Lycos have made significant investments in Autoweb
totaling approximately $29 million, which further strengthen our cash
position," said DeBiase. "Autoweb is now even better positioned to help build
the online automotive infrastructure and capture a larger share of the
increasing traffic and revenue opportunities as we drive toward profitability
in 2001."
First Quarter 2000 Conference Call
Autoweb's first quarter 2000 conference call will be held on Tuesday,
April 25, 2000 at 1:30 p.m. PT/ 4:30 p.m. ET. To participate in the call,
please dial 712-271-0003. A replay of the call will be available for 1 month
at 402.998.1230. To listen to the call over the Internet, please connect to:
http//:www.videonewswire.com/AUTOWEB/042500/. The Internet webcast will be
archived until May 25th, 2000.
Safe Harbor Statement
Statements in this news release, including statements that include words
such as "expects," "believes" or other future-oriented statements, contain
forward-looking statements that involve risks and uncertainties that could
cause actual results to differ from anticipated results. In particular,
factors that could cause Autoweb not to reach profitability in 2001 include,
but are not limited to: our ability to attract consumers through existing and
recently announced portal relationships; the combined viability of current and
new car buying process on our site; consumer acceptance of online car buying.
Other risks and uncertainties include changes in competitive behavior or
market forces, uncertainties regarding response from the vehicle
manufacturers, changes in the legal or regulatory environment, changes or lack
of changes in consumer preferences over time, technological challenges and an
inability to forecast future traffic and transactions. Further information on
risk factors that could affect results is detailed in Autoweb's filings with
the Securities and Exchange Commission, including its Registration Statement
on Form S-1 (No. 333-71177) and its Form 10-Q for the quarter ended March 31,
2000, to be filed with the Securities and Exchanges Commission.
About Autoweb.com, Inc.
Autoweb.com is the leading consumer automotive Internet service, guiding
users through every stage of vehicle ownership. Autoweb.com features
comprehensive, unbiased research from its subsidiary, Automotive Information
Center (AIC), the industry's leading provider of new and used vehicle
information for professionals and consumers. Through its dealer referral,
direct and auction commerce channels, Autoweb.com also offers a variety of
ways to purchase new and used vehicles. Autoweb.com works with Member Dealers,
vehicle manufacturers and other partners to provide the best experience at
every stage of vehicle ownership. For more information, please visit
http://www.autoweb.com.
AUTOWEB.COM, INC
CONDENSED BALANCE SHEETS
(In thousands)
December 31, March 31,
1999 2000
ASSETS
Current assets:
Cash, cash equivalents
and short term investments $32,834 $25,251
Accounts receivable, net 8,415 10,971
Prepaid expenses and other current assets 8,988 10,387
Total current assets 50,237 46,609
Property and equipment, net 2,462 2,465
Intangible assets, net 18,448 16,703
Deposits 530 176
Total assets $71,677 $65,953
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other accrued expenses $6,787 $8,408
Accrued payroll and related expenses 2,582 1,605
Deferred revenue 935 1,051
Current portion of notes
and lease obligations payable 326 341
Total current liabilities 10,630 11,405
Notes and lease obligations,
net of current portion 361 266
Total liabilities 10,991 11,671
Stockholders' equity 60,686 54,282
Total liabilities and stockholders' equity $71,677 $65,953
AUTOWEB.COM, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months
Ended March 31,
2000 1999
Net revenues $15,794 $5,744
Cost of net revenues 1,661 648
Gross profit 14,133 5,096
Operating expenses:
Sales and marketing 14,667 5,051
Product development 1,926 555
General and administrative 2,922 1,305
Stock-based compensation 419 664
Amortization of intangibles 1,745 -
Total operating expenses 21,679 7,575
Loss from operations (7,546) (2,479)
Interest and other income, net 318 39
Net loss $(7,228) $(2,440)
Net loss per share:
Basic and diluted $(0.28) $(0.25)
Weighted average shares-basic and diluted 25,503 9,789
Pro forma net loss per share:
Basic and diluted $(0.28) $(0.10)
Weighted average shares-basic and diluted (A) 25,503 24,586
Calculation of pro forma, as adjusted,
net loss per share: (B)
Net loss, as adjusted $(5,064) $(1,776)
Basic and diluted $(0.20) $(0.07)
Weighted average shares-basic and diluted (A) 25,503 24,586
(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.
