Autoweb.com Announces Q2 2000 Financial Results
20 July 2000
Autoweb.com Announces Q2 2000 Financial Results
Reduces Loss for Third Consecutive Quarter
SANTA CLARA, Calif., July 20 Autoweb.com, Inc. , the leading consumer automotive Internet
service, today announced financial results for its second quarter ended
June 30, 2000.
Net revenues for the second quarter of 2000 were $15.2 million, compared
with a record $15.8 million in the first quarter of 2000 and $7.0 million in
the second quarter of 1999. Net loss for the second quarter of 2000 was
$6.0 million, compared with a net loss of $7.2 million in the first quarter of
2000, and a net loss of $3.0 million in the second quarter of 1999.
Second quarter loss per share, including non-cash stock-based compensation
charges and amortization of intangibles, was $0.21 on approximately
28.7 million shares, compared to a loss per share of $0.28 on approximately
25.5 million shares in the first quarter of 2000. Loss per share in the
second quarter of 2000, before stock-based compensation charges and
amortization of intangibles, was $0.13 compared with a loss per share of
$0.20 in the first quarter of 2000.
"We are pleased that we continued to reduce our losses in Q2, making this
the third consecutive quarter where losses declined," said Sam Hedgpeth,
president and CEO of Autoweb.com. "We are focused on profitability and
therefore on balancing revenues against associated costs. Beating our
expectations on losses helps keep us on track to achieve operating
profitability.
"During the quarter, we broadened our relationship with America Online and
entered into a new relationship with Lycos. Our relationships with both
companies provide for deep technology, content and commerce integration. With
new deals of this complexity and magnitude, even with an existing partner, it
takes a while to achieve optimal performance," said Hedgpeth. "Although the
ramp-up caused us to experience lower-than-expected revenues in Q2, we have
been working closely with both Lycos and AOL to achieve full productivity, and
we have already made progress.
"We believe that our long-term growth prospects are outstanding,"
continued Hedgpeth. "In the past quarter, there were some erroneous reports
regarding our cash position that failed to account for the $29 million in
total investments we received from CarsDirect and Lycos. We have a strong
cash position, with $38 million in cash and investments, which we believe is
enough to achieve profitability. In addition, our agreements with Lycos and
AOL have accelerated the interest of vehicle manufacturers in working with
Autoweb on a variety of levels."
In other highlights of the quarter, Autoweb stated that it has
renegotiated portions of its broad-ranging business agreement with
CarsDirect.com, Inc., the leading direct automotive e-tailer. The new
contract remains focused on providing Autoweb's consumers with access to an
integrated direct new-car buying service, and Autoweb will continue to receive
revenue for each credit card lead it provides to CarsDirect. Key areas of the
agreement that have been changed include: the term of the contract, shortened
from four years to 2.75 years; the exclusivity terms, which now give each
party additional flexibility to work with other partners; and stock grants,
which have been aligned with Autoweb's performance over the contract.
In a separate announcement released today, Autoweb stated that it has made
key management changes to align the company's top personnel with its
manufacturer-focused initiatives. (see: July 20, 2000 Autoweb.com Promotes
Samuel Hedgpeth to President and CEO). In a third announcement released
today, Autoweb stated that it has hired Nadyne Edison to the newly created
position of chief marketing officer and vice president of customer
relationship management (see: July 20, 2000 Autoweb.com Names Former GM and
EDS Executive Nadyne G. Edison as Chief Marketing Officer and Vice President
of Customer Relationship Management).
Second Quarter 2000 Conference Call
Autoweb's second quarter 2000 conference call will be held on Thursday,
July 20, 2000 at 1:30 p.m. PT/ 4:30 p.m. ET. To participate in the call,
please dial 712-257-2276. A replay of the call will be available for 1 month
at 402-280-1631. To listen to the call over the Internet, please connect to:
http://www.videonewswire.com/AUTOWEB/072000/. The Internet Webcast will be
archived until August 20th, 2000.
Safe Harbor Statement
Certain statements in this news release, including statements that include
words such as "expects," "believes" or other future-oriented statements, are
forward-looking statements. Forward-looking statements 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: the company's 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 and our ability to continue
to reduce expenses without comparable or greater revenue reductions. 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 June 30, 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. Through its auction, direct
and referral commerce channels, Autoweb.com offers consumers a variety of ways
to purchase new and used vehicles in conjunction with vehicle manufacturers,
local Member Dealers and other commerce partners. The company's Web site also
provides consumers with a wide range of automotive-related products to support
the complete lifecycle of the vehicle, including finance, insurance and
maintenance. Autoweb.com features comprehensive, unbiased research from its
Automotive Information Center (AIC) division, the leading provider of
automotive content, data and tools used to power Internet services, portals
and manufacturer Web sites. The company's content and buying models are
available on three out of the top four portals through its infrastructure
partner program. For more information, please visit http://www.autoweb.com.
AUTOWEB.COM, INC.
CONDENSED BALANCE SHEETS
(In thousands)
December 31, June 30,
1999 2000
ASSETS
Current assets:
Cash, cash equivalents and
short term investments $32,834 $37,768
Accounts receivable, net 8,415 11,855
Prepaid expenses and
other current assets 8,988 15,929
Total current assets 50,237 65,552
Investments 2,400
Property and equipment, net 2,462 2,623
Intangible assets, net 18,448 15,251
Deposits 530 176
Total assets $71,677 $86,002
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable and other
accrued expenses $6,787 $5,190
Accrued payroll and
related expenses 2,582 1,175
Deferred revenue 935 477
Current portion of notes and
lease obligations payable 326 340
Total current liabilities 10,630 7,182
Notes and lease obligations,
net of current portion 361 149
Total liabilities 10,991 7,331
Stockholders' equity 60,686 78,671
Total liabilities and
stockholders' equity $71,677 $86,002
AUTOWEB.COM, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Net revenues $15,193 $7,021 $30,986 $12,765
Cost of net revenues 1,506 652 3,167 1,300
Gross profit 13,687 6,369 27,819 11,465
Operating expenses:
Sales and
marketing 12,838 7,329 27,505 12,380
Product development 2,366 624 4,292 1,179
General and
administrative 2,821 1,623 5,743 2,928
Stock based
compensation 410 538 829 1,202
Amortization of
intangibles 1,715 3,460
Total operating
expenses 20,150 10,114 41,829 17,689
Loss from
operations (6,463) (3,745) (14,010) (6,224)
Interest and
other income, net 463 791 781 830
Net loss ($6,000) ($2,954) ($13,229) ($5,394)
Net loss per share:
Basic and diluted $(0.21) $(0.12) $(0.49) $(0.31)
Weighted average
shares -- basic
and diluted 28,745 24,810 27,143 17,345
Calculation of
pro forma,
as adjusted,
net loss
per share: (A)
Net loss,
as adjusted (3,875) (2,416) (8,940) (4,192)
Basic and diluted 28,745 24,810 27,143 17,345
Weighted average
shares-basic
and diluted $(0.13) $(0.10) $(0.33) $(0.24)
(A) Adjusted to exclude non-cash stock-based compensation and
amortization of intangibles.