Cybergold Announces Record Quarterly Results; Revenues Increase 387% Year Over Year; 78% Sequentially Quarter Over Quarter.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)--Nov. 4, 1999-- 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) today announced that for the quarter ended September September: see month. 30, 1999, total revenues increased 387% to $1.38 million from revenues of $283,000 for the same period in 1998. Revenues for the quarter increased 78% compared to revenues reported for the quarter ended June June: see month. 30, 1999, led by a 97% increase in transaction revenues to $1.08 million from $548,000 for the same periods. Gross margin improved to 60% for the quarter ended September 30, 1999 from 50% for the same period in 1998 and from 54% for the quarter ended June 30, 1999. Reported net loss for the quarter ended September 30, 1999, was $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, reflecting the Company's September 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 nine months ended September 30, 1999, total revenues were $2.66 million, a 380% increase from revenues of $553,000 for the same period in 1998. Reported net loss for the nine months ended September 30, 1999 was $6.87 million, or $(0.38) per common share on a pro forma basis, reflecting the Company's September IPO as if it had occurred on January January: see month. 1, 1999. "We are extremely pleased with our third quarter financial results, and the momentum we have seen in the marketplace," 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. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cybergold. "Growing numbers of consumers have earned cash through Cybergold. A growing number of merchants have used Cybergold's pay-for-performance See pay-per-click. marketing model in an effort to reduce their cost of customer acquisition. In the third quarter, we added more than 60 new incentives clients bringing us to more than 200 advertising and marketing clients since inception." Cybergold added more than 900,000 new consumer members for the quarter ended September 30, 1999 and had more than 3.1 million members as of September 30, 1999. The Company's new incentives clients include CDNOW (NASDAQ:CDNW), Infonautics (NASDAQ:INFO), Whole Foods (NASDAQ:WFMI WFMI Whole Foods Market, Inc. ), Motley Fool, MapQuest (NASDAQ:MQST), Big Star, NetGrocer, YesMail (NASDAQ:YESM), eWanted, Gator, Healthshop and two divisions of NetMarket: AutoVantage and Traveler's Advantage. Cybergold's micropayment An electronic commerce transaction of very low value. It may refer to charging just a few cents or even a fraction of a cent for a transaction such as an information lookup. It may also refer to aggregating several small-value purchases and charging a credit card at the end of the day or initiative surpassed 50 signed merchants by September 30, 1999. New micropayment customers during the quarter include Xoom, ZDNet (NYSE NYSE See: New York Stock Exchange :ZDZ) and Riffage. The Company also extended relationships with key existing incentive customers such as EarthLink Network, 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) , E
rade, Uproar, Cendant (NYSE:CD) and Doubleday.
"In September, our initial public offering was successful,
pricing at the top of the range, and giving us a strong balance sheet
with nearly $50 million in cash and short-term investments as of
September 30, 1999," said Goldhaber.
Cybergold also announced the launch of a new service called
Cash2Register: a joint partnership with Inference (NASDAQ:INFR) that
pays consumers to fill out product registration cards. Manufacturers,
in return, get real-time marketing information and analysis on their
customers.
About Cybergold
Cybergold, Inc. (NASDAQ:CGLD) is a leading provider of
Internet-based direct marketing and advertising solutions, including
incentive programs which reward consumers with cash for responding to
ads and programs. Cybergold's nearly 3.5 million members can spend
their cash rewards both online and offline, when they transfer their
earnings to a credit card or a bank account. Cybergold consistently
ranks among the 100 most visited Web sites, according to PC Data
Online. Cybergold's partnerships include Visa USA, MBNA (NYSE:KRB),
AOL (NYSE:AOL), EarthLink (NASDAQ:ELNK), E*TRADE (NASDAQ:EGRP), Xoom
(NASDAQ:XMGM), Quintel (NASDAQ:QTEL) and Autobytel (NASDAQ:ABTL). It
counts Intel (NASDAQ:INTC) among its corporate investors. Cybergold is
headquartered in Oakland, California. 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
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, 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, 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
"Risk Factors" in the Company's registration statement on Form S-1, as
amended.
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Cybergold Inc. Statements of Operations (Unaudited) For the 3 month period ended Sep 30, Sep 30, 1998 1999 --------- --------- Revenues Transaction $ 175,000 $ 1,083,000 Custom marketing services & other 108,000 295,000 --------- --------- Total revenues 283,000 1,378,000 Cost of revenues Transaction 105,000 509,000 Custom marketing services & other 37,000 46,000 --------- --------- Total cost of revenues 142,000 555,000 Gross margin 141,000 823,000 Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. Product development 430,000 745,000 Sales and marketing 563,000 2,529,000 General and administrative 244,000 434,000 Amortization of deferred compensation 30,000 118,000 --------- --------- Total operating expenses 1,267,000 3,826,000 Loss from operations (1,126,000) (3,003,000) Interest income, net 16,000 84,000 --------- --------- Net loss (1,110,000) 2,919,000) Dividend attributable to preferred stockholders (283,000) (751,000) --------- --------- Net loss attributable to common stockholders $(1,393,000) $(3,670,000) ========= ========== Net loss per common share, basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. $ (0.35) $ (0.67) ========= ========== pro forma basic and diluted (a) $ (0.15) ========= ========== Weighted average common shares outstanding, basic and diluted 4,024,933 5,508,735 ========= ========== pro forma basic and diluted (a) 19,296,801 ========= ========== For the 9 month period ended Sep 30, Sep 30, 1998 1999 --------- --------- Revenues Transaction $ 437,000 $ 1,964,000 Custom marketing services & other 116,000 691,000 --------- --------- Total revenues 553,000 2,655,000 Cost of revenues Transaction 202,000 924,000 Custom marketing services & other 41,000 204,000 --------- --------- Total cost of revenues 243,000 1,128,000 Gross margin 310,000 1,527,000 Operating expenses Product development 1,220,000 1,812,000 Sales and marketing 1,991,000 4,925,000 General and administrative 558,000 1,178,000 Amortization of deferred compensation 57,000 609,000 --------- --------- Total operating expenses 3,826,000 8,524,000 Loss from operations (3,516,000) (6,997,000) Interest income, net 23,000 129,000 --------- --------- Net loss (3,493,000) (6,868,000) Dividend attributable to preferred stockholders (377,000) (1,570,000) --------- --------- Net loss attributable to common stockholders $(3,870,000) $(8,438,000) ========= ========== Net loss per common share, basic and diluted $ (0.97) $ (1.83) ========= ========== pro forma basic and diluted (a) $ (0.38) ========= ========== Weighted average common shares outstanding, basic and diluted 4,010,342 4,600,278 ========= ========== pro forma basic and diluted (a) 18,139,508 ========= ========== (a) Pro forma presentation assumes that the company's IPO occurred at the beginning of the periods presented. Cybergold Inc. Balance Sheets December 31, September 30, 1998 1999 (Unaudited) ----------- ------------ ASSETS Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. Cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments $ 3,175,000 $ 49,168,000 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , net 391,000 1,371,000 Prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. 26,000 49,000 ----------- ------------ Total current assets 3,592,000 50,588,000 Property and equipment, net 407,000 615,000 Deposits and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 41,000 41,000 ----------- ------------ Total assets $ 4,040,000 $ 51,244,000 =========== ============ LIABILITIES AND STOCKHOLDERS' EQUITY Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. (DEFICIT) Current Liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. Accounts payable and accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. $ 424,000 $ 1,989,000 Long term obligations, current maturities 137,000 176,000 Member payable 800,000 1,646,000 Membership acquisition payable 176,000 908,000 Deferred revenue 176,000 632,000 ----------- ------------ Total current liabilities 1,713,000 5,351,000 Long term obligations, net of current maturities 225,000 290,000 ----------- ------------ Total liabilities 1,938,000 5,641,000 Convertible Redeemable Redeemable Eligible for redemption under the terms of an indenture. Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. 6,379,000 -- Total Stockholders Equity (deficit) (4,277,000) 45,603,000 ----------- ------------ Total liabilities and stockholders' equity (deficit) $ 4,040,000 $ 51,244,000 =========== ============ |
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