Launch Reports Fourth Quarter and Year End Results
LAUNCH Media (http://www.launch.com) announced financial results for the fourth quarter andyear ended December 31, 1999. Net revenues for the fourth quarter were $6.6 million. This represents a 100% increase over pro forma net revenues of $3.3 million for the fourthquarter of 1998 and a 25% increase from $5.3 million for the immediatelypreceding quarter.
The net loss for the 1999 fourth quarter was$10.0 million, or $0.78 per share, excluding a one-time non-cash charge of$5.0 million, or $0.39 per share, for the issuance of warrants relating tovideo licensing agreements. This compares to a pro forma net loss of$6.3 million, or $0.74 per share, for the fourth quarter of 1998 and a proforma net loss of $9.3 million, or $0.73 per share, for the third quarter of1999.
The Company's revenue mix for the fourth quarter was 58% fromadvertising and transaction fees, 31% from content licensing and 11% fromsubscription and other.
For the year ended December 31, 1999, assuming the acquisition of SWNetworks and Musicvideos.com as of January 1, pro forma revenues totaled$18.3 million, compared to pro forma revenues of $9.4 million in the sameperiod of 1998. The pro forma net loss for 1999 was $35.1 million, or $3.09per share, excluding a one-time non-cash charge of $5.0 million, or $0.43 pershare, for the issuance of warrants relating to video licensing agreements.This compares to a pro forma net loss of $24.6 million, or $2.87 per share, inthe same period last year. LAUNCH's registered user base grew 33% to 2.8 million registeredusers as of December 31, 1999, up from 2.1 million as of September 30, 1999. Unique visitors increased to 4.7 million in December 1999, up from 1.9 million in September 1999.
According to David Goldberg, CEO of LAUNCH, "We are very pleased with ourfourth quarter and full-year performance. Our 100% revenue growth in thequarter and significant increase in our number of registered users reflect ourability to effectively execute our business model and generate traffic. Wehave been able to convert this traffic into substantial advertisingsponsorships. During the fourth quarter we also introducedLAUNCHcast, which has greatly enhanced the personalization and stickiness ofLaunch.com by enabling members to design streaming music stations based oneach user's individual preferences. The final consumer release is expected tobe available in first quarter 2000."