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FOR IMMEDIATE RELEASE
THESTREET.COM REPORTS LOWER-THAN-EXPECTED CONSOLIDATED NET LOSS IN Q3
REVENUES GREW 58% OVER Q3 1999
NEW YORK, October 26, 2000 - TheStreet.com, Inc. (Nasdaq:
TSCM
), a leading provider of financial news and commentary, today announced its financial results for the third quarter ended September 30, 2000.
Highlights include:
- Total revenues of $6.2 million - a 58% increase over Q3 1999.
- Lower-than-expected net loss of ($.34) per share - excluding goodwill, a non-cash compensation charge and preferred stock dividends - three cents better than consensus analysts' expectations.
- A continued strong balance sheet with a cash position of $90 million.
- 127 million page views for the quarter - up over 150% from Q3 1999.
Consolidated net revenues for the third quarter of 2000 totaled $6.2 million, a 58% increase over third quarter 1999 revenues of $3.9 million. Excluding goodwill and a non-cash compensation charge in connection with certain stock options, the Company reported a consolidated net loss of ($8.9) million, or ($0.34) per share, in the third quarter of 2000, before preferred dividends, compared with a net loss of ($7.2) million, or ($0.29) per share in the third quarter of 1999.
As of September 30, 2000, the Company had $90 million in cash.
"In this market, profitability is everything," said Thomas J. Clarke, Chief Executive Officer. "To get there fast, we remain committed to our multi-revenue business model, and to our laser-like focus on costs. We also remain committed to become cash flow positive in our US operations by the second half of 2001."
The average monthly number of unique visitors to the Company's U.S. sites during the third quarter of 2000 was 2.9 million, an increase of 123% compared with the third quarter of 1999. For the week ended September 24, TheStreet.com saw such a jump in traffic that it made the list of Media Metrix's five top gainers - with 112,000 average daily unique visitors. This equaled a 100% increase over the prior three-week average. The total number of page views for the quarter was 127 million - an increase of over 150% from 51 million in Q3 1999.
"From a traffic standpoint, we had a tough quarter because some of our news distribution deals were slower to implement than we had expected," Clarke said. "But this started to turn around in the last weeks of September. We are encouraged by an upward trend that has continued through October."
Consolidated advertising and e-commerce revenues for the third quarter totaled $3.7 million - up 74% from the third quarter of 1999. In the third quarter, 174 companies advertised on TheStreet.com's sites worldwide.
"Increasingly advertisers recognize the power of the Web as a critical component of targeted marketing initiatives," Clarke said. "Through our network of sites, we deliver a great demographic mix for a wide range of advertisers. With inventory trending up again, this should impact revenue going forward."
Consolidated subscription revenues for the third quarter totaled $2.1 million, a 56% increase compared to $1.4 million in the third quarter of 1999.
Key Highlights for the Quarter:
- Received investment of $7.5 million from Vulcan Ventures, the investment organization of Paul Allen, and Go2Net, a leading provider of Internet applications and technologies.
- Signed 12 content distribution deals with partners such as Yahoo!Mail, Yodlee.com, Nettaxi.com, FreeInternet.com, Industry Standard, Uconnections, Contentville, IgameUSA and NBCi.
- Renewed an agreement with AvantGo to continue to provide financial news on hand-held wireless devices through the AvantGo system.
- Selected On2.com, the broadband technology and service provider, to bring broadband-enhanced video to TheStreet.com's users.
- Agreed with NexTrend Technologies to integrate TheStreet.com's subscription-based content into its NexTrend's analytical software, providing easy access to both individual and institutional investors using TheStreet.com and NexTrend software.
TheStreet.com will conduct a conference call today, October 26, at 11:00 a.m. ET to discuss third quarter results. The Company welcomes all members of the financial and media communities to listen to the Web cast of its call at:
http://www.thestreet.com/tsc/ir/conferencecalls.html
About TheStreet.com
TheStreet.com, Inc. (Nasdaq:
TSCM
) is a leading provider of original, timely, comprehensive and trustworthy financial news and commentary - through its network of free and subscription-based Web sites, and through conferences, books, and wireless and broadband initiatives. TheStreet.com Network includes the free TheStreet.com site for individual investors of all experience levels and three subscription-based satellite sites: RealMoney.com for active investors; ipoPros.com for IPO investors; and TheStreetPros.com for investment professionals. TheStreet.com brand is built on its best-in-class editorial team of experienced financial journalists based in New York City, San Francisco and London, and commentators throughout Europe and Asia.
Statements contained in this news release not related to historical facts may be deemed forward-looking statements as that term is define in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties (described in the Company's SEC filings) which could cause actual results to differ.
Q3 Balance
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Q3 Company Statement of Ops
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Q3 Consolidated Statement of Ops
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