FOR IMMEDIATE RELEASE
TheStreet.com Reports Record Quarterly Revenues Increases in Subscriptions and Advertising Boost Revenues 253% Year-Over-Year
New York, NY, October 28, 1999 -
TheStreet.com, Inc. (Nasdaq: TSCM), a leading Web-based provider of financial and investment news and commentary, today announced its financial results for the third quarter ended September 30, 1999. Driven by strong gains in subscriptions and advertising, net revenues for the third quarter of 1999 totaled $3.9 million, a 253% increase over third quarter 1998 revenues of $1.1 million and a 21% increase over second quarter 1999 revenues of $3.3 million. For the first nine months of 1999, net revenues increased 192% to $9.2 million compared with $3.2 million for the first nine months of 1998. Excluding a non-cash compensation charge in connection with certain stock options, the Company reported a net loss of $7.2 million, or ($0.29) per share, in the third quarter of 1999. Excluding the non-cash compensation charge, the Company's net loss for the first nine months of 1999 amounted to $19.4 million, or ($0.98), before giving effect to preferred dividends.
Subscription revenues for the most recent quarter totaled $1.4 million, a 208% increase compared with the third quarter 1998 level of $438,000 and a 45% increase over the second quarter 1999 level of $934,000. Growth in subscription revenues is primarily attributable to a significant increase in
's subscriber base. As of September 30, 1999, the Company's subscription base was over 94,000 (not including free-trial members), nearly three times the number of subscribers that the Company reported as of December 31, 1998 and a 42% increase over the total at the end of the second quarter of 1999.
Advertising and e-commerce revenues for the most recent quarter totaled $2.1 million, a 273% increase compared with the third quarter 1998 level of $575,000 and a 23% increase over the second quarter 1999 level of $1.7 million. So far, almost 150 companies have signed contracts to advertise on
Traffic and visitation to
Web site have been increasing steadily, and the Company reported an increase in the time spent per visit, a metric important to many advertisers and sponsors. According to DoubleClick, the average monthly number of unique visitors to the Company's site during the third quarter of 1999 was almost 1.3 million, an increase of 27% compared with one million average monthly unique visitors during the second quarter of 1999. DoubleClick measures
's users in connection with delivering advertisements on its Web site.
After giving effect to preferred dividends and the non-cash compensation charge, the Company's third quarter 1999 net loss amounted to $7.8 million or ($0.32) per share, compared to $3.2 million or ($0.40) per share in the third quarter of 1998. With these inclusions, the net loss for the first nine months of 1999 was $21.8 million, or ($1.24) per share, compared with a net loss of $11.6 million, or ($1.57) per share, for the first nine months of 1998.
"In addition to our solid revenue gains for the quarter, we're proud of our progress in the key strategic areas that will drive future growth," said Kevin W. English, Chairman and Chief Executive Officer. "Our promising UK news venture,
, together with our planned strategic investment in a new Israeli financial news site, are the leading edge of our international expansion," English added. "New relationships with Lowestfare.com, KeyCorp, Pershing and others will help drive subscription growth and top line strength. Finally, the addition of Tom Clarke to our leadership team will help us continue our progress in these areas, while we add personalization features and expanded breaking news content to increase our appeal to a broad base of investors."
Strategic Investments and International Expansion
- TheStreet.com announced plans for TheStreet.co.uk. TheStreet.com owns a majority interest in the venture, which is funded by a $17 million investment by Barclays Capital, Chase Capital Partners, ETF Group, 3i, and Intel. A launch for the first half of 2000 is planned for the site, which will target the rapidly increasing population of self-directed UK investors.
- TheStreet.com announced that it plans to enter into a joint venture with Ha'aretz, a leading Israeli newspaper publisher, by making a strategic investment in a new online news provider that aims to change the financial, high-tech, and business news landscape in Israel. The new site and TheStreet.com plan to share news and headlines. Kevin English is joining the new company's board of directors.
- TheStreet.com and First USA announced a multi-year marketing partnership, with First USA becoming the exclusive marketer of credit card products on TheStreet.com.
- TheStreet.com signed a one-year sponsorship agreement with Lowestfare.com, under which the travel site sponsors the new TSC Travel Center for a fixed fee, providing travel booking services to TheStreet.com readers.
Subscription Marketing Agreements
- TheStreet.com and KeyCorp announced a subscription underwriting agreement under which KeyBank provides customers with access to premium and free content from TheStreet.com at the new Key.com site.
- DLJ's Pershing unit agreed to a subscription underwriting agreement, under which Pershing will offer full premium access to TheStreet.com to its clients, including banks and brokers, through a variety of distribution channels.
Additions to Executive Team
- TheStreet.com appointed Thomas J. Clarke, Jr. to the new position of President and Chief Operating Officer. Clarke was previously the CEO of Thomson Financial Investor Relations (formerly Technimetrics, Inc.) and has 15 years of experience in the financial services field.
- TheStreet.com named Michael Smith, formerly of HBO, to the position of Chief Information Officer.
Product Launches and Enhancements
- "TheStreet.com" show on FOX News Channel is off to a strong start, and has added a third timeslot in prime time at 6 p.m. ET on Saturdays, along with 10 a.m. Saturdays and Sundays.
- The nomination process is underway for TheStreet.com Analyst Awards-Equity 2000 project, which promises to be the most fair and accountable analyst ranking on the market.
- A newly redesigned TheStreet.com debuted this week, with a new layout designed to showcase the site's expanded free content areas, enhanced portfolio tracker, and new message boards. The new tools, community offerings, and additional free content are designed to increase traffic and "stickiness," or time spent per visit.
TheStreet.com will conduct a conference call today at 5:00 p.m. EDT to discuss its third quarter 1999 financial results. The Company welcomes investors, analysts and members of the press to listen to the call over the Internet through Broadcast.com at:
is publisher of
, a leading Web-based provider of original, timely, comprehensive, and trustworthy financial news and commentary. TheStreet.com (
www.thestreet.com) was founded in 1996 and is based in New York City, with bureaus in San Francisco, Silicon Valley, London, Tokyo and Berlin.
's editorial team, with over 80 experienced financial journalists and two dozen outside contributors, publishes approximately 40 original news stories and commentaries every business day, including columns by James J. Cramer, Herb Greenberg, and Adam Lashinsky. TheStreet.com, Inc. has established strategic alliances with Yahoo!, America Online, The New York Times Co., Fox News Network L.L.C., Intuit, 3 Com, E*TRADE, DLJ
, and other leading companies.
, a financial news site majority owned by TheStreet.com and intended for UK investors, will launch in early 2000.
Statements contained in this news release which are not related to historical facts may be deemed forward-looking statements as that term is defined 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.
Consolidated Condensed Balance Sheet (PDF 5.53KB)
Consolidated Condensed Statements of Operations (PDF 6.62KB)
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