NetGravity Posts Loss Despite Higher Revenues

Online ad solutions company NetGravity
in San Mateo, CA posted a net loss for its fourth quarter ending
Dec. 31 of $2.66 million, or $0.20 per
share, compared to a net loss of $2.47 million or $0.88 per share in the same
period a year earlier.

Revenues were $4.16 million, up from $1.86 million in the year earlier

A strong contributor to the company’s revenue growth in the fourth quarter was
a 58 percent quarter-to-quarter growth in software license revenue, NetGravity

The company reported revenues of $11.55 million for the fiscal year, up from
revenues of $6.36 million for the prior year.

The net loss for the fiscal year ended December 31, 1998, was $11.29 million,
or $1.28 per share compared to a net loss of $6.88 million or $2.46 per share
for the prior year.

“During 1998, NetGravity continued to demonstrate its leadership in Internet
advertising solutions by successfully penetrating both the e-commerce
and ad agency segments,” said John Danner, chairman and CEO of NetGravity. “In
addition to our strong software licensing, we introduced the most reliable and
fastest-growing outsourced ad management service with AdCenter.”

Last week, NetGravity announced a new outsourced ad management service
specifically aimed at the agency market segment–AdCenter for Agencies, an
end-to-end ad
management solution, designed by agencies for agencies, including top
interactive agencies as key contributors–, Anderson & Lembke and
Ogilvy Interactive.

Still, the company said that it “expects to significantly increase its
expenditures on
research and development, and sales and marketing in connection with
its efforts to expand its presence in its target markets. . .Because NetGravity
does not expect incremental revenues to offset these incremental expenses in
the short
term, the company expects. . .continued quarterly operating losses through the
first half of 2000. . .”

News Around the Web