Cybergold Announces Another Record Quarter End With Revenues Increasing 92 Percent Quarter-to-Quarter.Business Editors OAKLAND Oakland, city (1990 pop. 372,242), seat of Alameda co., W Calif., on the eastern side of San Francisco Bay; inc. 1852. Together with San Francisco and San Jose, the city comprises the fourth largest metropolitan area in the United States. , Calif.--(BUSINESS WIRE)--Feb.8, 2000 Strong Advertiser ad·ver·tise v. ad·ver·tised, ad·ver·tis·ing, ad·ver·tis·es v.tr. 1. To make public announcement of, especially to proclaim the qualities or advantages of (a product or business) so as to increase Relationships Increase Fourth-Quarter Marketing Services Revenue 339 percent Cybergold, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CGLD), the pioneer of Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the incentives that rewards consumers with cash, today announced that revenues increased 486 percent to $2.65 million for fourth quarter ending December December: see month. 31, 1999, from year-earlier fourth quarter revenues of $452,000. Revenues for the quarter increased 92 percent, compared to third-quarter 1999 revenues, principally driven by a 339 percent increase in revenues from Custom Marketing Services, going to $1.30 million from $295,000 for third-quarter 1999. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. improved to 73 percent for the quarter from 51 percent in same-period 1998, and from 60 percent in third-quarter 1999. Reported net loss for fourth-quarter 1999 was $3.20 million, or $(0.17) per common share, compared to $2.92 million, or $(0.15) per common share on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, for third-quarter 1999, reflecting the company's September September: see month. IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. , as if it had occurred on July July: see month. 1, 1999. For the 12 months ended December 31, 1999, total revenues were $5.3 million, a 428 percent increase from year-earlier 1998 revenues of $1.0 million. Reported net loss for the 12 months ended December 31, 1999 was $10.1 million, or $(0.63) per common share on a pro forma basis, reflecting the company's September IPO as if it had occurred on January 1, 1999. &uot;Deepening deep·en tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound our relationships with advertisers helped drive the rapid marketing services growth,&uot; said Nat Goldhaber A. Nathaniel ("Nat") Goldhaber - An Internet entrepreneur and longtime associate of the Maharishi Mahesh Yogi, was the Natural Law Party nominee for Vice President in 2000 on the ticket headed by John Hagelin. , chief executive officer and president of Cybergold. &uot;Many of our advertisers implemented integrated Cybergold campaigns that linked their Cybergold cash-incentive offers with other marketing services, such as highly targeted permission-based marketing e-mail programs Software in the user's computer that can access the mail servers in a local or remote network. Also known as an "e-mail client," "mail client," "mail program," and "mail reader," it provides the ability to send and receive e-mail messages and file attachments. .&uot; During 1999, Cybergold conducted 130 direct e-mail campaigns and sent nearly 80 million permission-based marketing e-mails. Much of this activity occurred in the fourth quarter when 87 programs issued 57 million e-mails. In addition, membership grew 279 percent to more than 4 million in 1999, with members completing 3.8 million cash incentive-based offers---a 476 percent increase over 1998. The number of cumulative advertising clients rose to more than 400, a 238 percent increase over 1998. Goldhaber said, &uot;We were pleased with advertisers' validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. of Cybergold's business model and also with the quality of advertisers we attracted in 1999. We added such companies as Toys'R Us, Brooks Brothers Brooks Brothers is the oldest surviving men's clothier in the United States, founded in 1818. The privately owned company is owned by Retail Brand Alliance, a spinoff of Luxottica, and is headquartered on Madison Avenue in New York City. , LL Bean, Dell and Borders Books and experienced a healthy mix of offline and dot-com (1) Refers to the period (dot) followed by the abbreviation of the commercial domain (.com) at the end of an Internet address. Since the .com domain is so widely used, the Internet became known as the "dot-com" world, and dot-com companies are those formed to offer services or businesses. This is a very diverse, broad base of clients to have with us as we enter into this new year.&uot; About Cybergold Cybergold, Inc. (NASDAQ: CGLD) is the company that pioneered Internet incentives by rewarding consumers with cash for responding to ads and programs. Cybergold's more than 4 million members can spend their cash rewards online or at the sites of 56 merchants who have adopted Cybergold's payment technology. Members can also spend their cash rewards offline by transferring it to a VISA card or a bank account. Cybergold's partnerships include Visa USA, MBNA MBNA Monument Builders of North America MBNA Mercedes-Benz North America MBNA Maryland Bank, National Association MBNA Maryland Bank North America MBNA Mount Baker Nurses Association (Bellingham, Washington) , AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. , EarthLink, E*TRADE, Quintel and Autobytel. Cybergold is headquartered in Oakland, California “Oakland” redirects here. For other uses, see Oakland (disambiguation). Oakland (IPA: /ˈoʊklənd/), founded in 1852, is the eighth-largest city in the U.S. and counts Intel among its corporate investors Noun 1. corporate investor - a company that invests in (acquires control of) other companies company - an institution created to conduct business; "he only invests in large well-established companies"; "he started the company in his garage" . For more information, visit www.cybergold.com Statements in this press release regarding Cybergold, Inc.'s business which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , including statements regarding the Company's expectations, beliefs, hopes, intentions or strategies regarding the future. Forward-looking statements include statements regarding future revenue and market growth. All forward-looking statements included in this document are based upon information available to the Company as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company assumes no obligation to update any such forward-looking statement. Actual results could differ materially from the Company's current expectations. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see &uot;Risk Factors&uot; in the Company's registration statement on Form S-1, as amended. - Tables to Follow -
(Unaudited) for the 3 months period ended
31-Dec-98 31-Dec-99
Statement of operations Data:
Revenues
Transactions $ 191,000 $ 1,352,000
CMS &other 261,000 1,296,000
----------------------------------
Total revenues 452,000 2,648,000
Cost of revenues
Transactions 91,000 669,000
CMS &other 132,000 48,000
----------------------------------
Total Cost of Revenues 223,000 717,000
Gross Margin 229,000 1,931,000
Operating expenses
Sales &Marketing 704,000 3,320,000
Product Development 480,000 1,044,000
General &Administrative 234,000 1,247,000
Amortization of deferred
compensation 141,000 125,000
----------------------------------
Total operating expenses 1,559,000 5,736,000
Loss from operations $ (1,330,000) $ (3,805,000)
Interest income,net 55,000 610,000
----------------------------------
Net Loss $ (1,275,000) $ (3,195,000)
Dividend attributable to preferred
stockholders (282,000) -
----------------------------------
Net loss Attributable to Common
Stockholders $ (1,557,000) $ (3,195,000)
==================================
Net loss per common share, basic ----------------------------------
and diluted $ (0.39) $ (0.17)
==================================
Weighted average common shares
outstanding, basic and diluted 4,043,731 19,323,202
----------------------------------
Pro forma basic &diluted $ (0.09) $ (0.17)
==================================
Pro forma,Weighted Average
common shares outstanding, basic
&diluted 16,627,907 19,323,202
==================================
for the year ended
31-Dec-98 31-Dec-99
Statement of operations Data:
Revenues
Transactions $ 628,000 $ 3,316,000
CMS &other 377,000 1,987,000
--------------------------------
Total revenues 1,005,000 5,303,000
Cost of revenues
Transactions 293,000 1,594,000
CMS &other 173,000 279,000
--------------------------------
Total Cost of Revenues 466,000 1,873,000
Gross Margin 539,000 3,430,000
Operating expenses
Sales &Marketing 2,695,000 8,312,000
Product Development 1,700,000 2,670,000
General &Administrative 792,000 2,641,000
Amortization of deferred
compensation 198,000 610,000
--------------------------------
Total operating expenses 5,385,000 14,233,000
Loss from operations $ (4,846,000) $ (10,803,000)
Interest income,net 78,000 740,000
--------------------------------
Net Loss $ (4,768,000) $ (10,063,000)
Dividend attributable to
preferred stockholders (660,000) (1,570,000)
--------------------------------
Net loss Attributable to Common
Stockholders $ (5,428,000) $ (11,633,000)
================================
Net loss per common share, basic --------------------------------
and diluted $ (1.35) $ (1.40)
================================
Weighted average common shares
outstanding, basic and diluted 4,020,000 8,308,482
--------------------------------
Pro forma basic &diluted $ (0.36) $ (0.63)
================================
Pro forma,Weighted Average
common shares outstanding,
basic &diluted 14,986,000 18,427,324
================================
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