Jupiter Media Metrix Announces First Quarter 2001 Financial Results

Pro Forma Subscription Services Revenues Rise 29 Percent



Apr 26, 2001, 01:00 ET from Jupiter Media Metrix, Inc.

    NEW YORK, April 26 /PRNewswire/ --
 Jupiter Media Metrix, Inc. (Nasdaq:   JMXI), the global leader in market
 intelligence for the new economy, today announced financial results for the
 first quarter ended March 31, 2001. Jupiter Media Metrix' revenues were
 $29.6 million for the first quarter, an 8 percent increase versus pro forma
 revenues of $27.4 million for the first quarter of 2000, with pro forma
 syndicated subscription services revenues increasing by 29 percent. Net loss,
 excluding amortization and one-time charges recorded during the quarter, was
 $10.8 million, or $0.30 per share, compared with a pro forma net loss of
 $1.7 million or $0.05 per share for the same period 2000.
 
     "Though our revenues were affected by the softening economy and the
 continued decrease in our dot-com client base, I am pleased to report that
 during the first quarter we completed the majority of the work to integrate
 our operations to realize the benefits of our merger," said Tod Johnson,
 chairman and chief executive officer of Jupiter Media Metrix. "We now have an
 integrated sales and client service organization that is 100 percent focused
 on selling our leading measurement and analyst research services under the
 Jupiter Media Metrix brand. Client reaction has been very positive, and we
 were pleased to add 180 new client contracts during the quarter, including
 General Motors -- which is now subscribing to all three of our services,
 including Media Metrix, AdRelevance and Jupiter Research -- NEC, BBC News,
 Intelsat, and Ziff Davis Media."
 
     On a pro forma basis, revenue growth for the quarter versus the first
 quarter of 2000 was driven by a 40 percent increase in measurement revenues to
 $14.3 million, and a 19 percent increase in research services revenues to
 $14.3 million. Event and other revenues were down 81 percent versus the first
 quarter of 2000 to $988,000, reflecting the decrease in the total number of
 events held during the quarter, combined with softer attendance and
 sponsorships at the company's forums. Total contract value, defined as the
 annualized value of all subscriptions at the end of each period, was
 $105.0 million on March 31, 2001, a 18 percent increase compared to March 31,
 2000.
 
     The company implemented several expense containment initiatives during the
 quarter and continues to examine its cost structure in light of softer market
 conditions. In recognition of the company's near-term challenges, and to
 better position the company for long-term opportunities, Jupiter Media Metrix
 announced it will reduce its global workforce by approximately 18 percent over
 the coming weeks. "While these staff reductions are difficult, we feel they
 are necessary as we concentrate our resources on our core strengths and lead
 the company to profitability," said Mr. Johnson.
 
     The company also completed several specific market-focused initiatives
 during the quarter to leverage its unique product portfolio and address
 clients' evolving needs. The company's new product architecture, unveiled in
 early April, is designed to meet businesses' most critical needs: defining
 opportunities and threats; developing and implementing strategies; and
 benchmarking performance. "A client's partnership with Jupiter Media Metrix
 now means more integrated and personalized analysis and measurement tools,"
 said Gene DeRose, Jupiter Media Metrix vice chairman and president. "Clients
 benefit from industry- and region-specific services -- supported by our new
 Advisor program that offers an ongoing, proactive relationship with dedicated
 Jupiter Media Metrix Research analysts -- to help them analyze change and
 measure performance."
 
     Mr. Johnson concluded, "We'll continue to focus on the long-term success
 of our business by investing in our core measurement and analyst research
 services, building out the business globally in the countries where our
 clients want us to be and managing our expense structure in line with current
 and foreseeable market conditions."
 
     First Quarter 2001 Conference Call
     Today at 5:00 p.m. ET, Jupiter Media Metrix management will host a
 conference call and Webcast to discuss its first quarter 2001 results and
 outlook. The company welcomes all members of the financial and media
 communities to visit the "Investor Relations" area of http://www.jmm.com to
 listen to the conference call via live Webcast. The Webcast replay will be
 archived on the site through May 31, 2001.
 
     About Jupiter Media Metrix
     Jupiter Media Metrix, formed by the merger of Jupiter Communications and
 Media Metrix, is a global leader in market intelligence for the new economy.
 The company delivers innovative and comprehensive Internet measurement,
 analysis, intelligence and events to provide businesses with unmatched global
 resources for understanding and profiting from the Internet. Jupiter Media
 Metrix brings together world-class, innovative and market-leading products,
 services, research methodologies and people. Jupiter Media Metrix brands
 include Media Metrix, AdRelevance, Jupiter Research and Jupiter Events. The
 company is headquartered in New York City and operates worldwide, across the
 Americas, Asia Pacific, Europe (as Jupiter MMXI Europe), and the Middle East.
 Visit us at http://www.jmm.com for more information.
 
     Forward Looking Statements
     This press release contains statements that may constitute forward-looking
 statements within the meaning of the Private Securities Litigation Reform Act
 of 1995. These forward-looking statements are based on the company's current
 plans and expectations and are subject to risks and uncertainties that could
 cause such statements to differ materially from actual future events or
 results. Important factors that could cause Jupiter Media Metrix' actual
 results to differ materially from those described in a forward-looking
 statement include, among others, changes in the markets for the company's
 products and services, increased competition from existing or new competitors,
 the company's ability to manage its growth and to attract and retain
 experienced personnel, fluctuations in the company's quarterly and annual
 operating results, the company's ability to manage the international expansion
 of its business, risks associated with the integration of acquisitions and
 general business and economic conditions. Additional information about the
 risks that may affect Jupiter Media Metrix' business and financial results are
 discussed in the company's Annual Report on Form 10-K for the year ended
 December 31, 2000, which was filed with the SEC on April 2, 2001, and the
 company's quarterly reports on Form 10-Q filed with the SEC. You are
 encouraged to read this information carefully. Jupiter Media Metrix undertakes
 no obligation to update any forward-looking statement that may be made from
 time to time by or on behalf of the company.
 
                           Jupiter Media Metrix, Inc.
                 Condensed Consolidated Statement of Operations
              (Unaudited, in thousands except for per share data)
 
                                                         Three Months Ended
                                                             March 31,
                                                      2001            2000
 
     Revenues
       Measurement                                    $14,279        $10,204
       Research Services                               14,296             --
       Events/Other                                       988             --
     Total revenues                                   $29,563        $10,204
     Costs of revenues                                 13,759          4,411
     Gross profit                                      15,804          5,793
 
     Operating expenses:
       Research and development                         7,201          2,916
       Sales and marketing                             11,703          4,129
       General and administrative                      10,632          3,089
       Amortization of deferred compensation
       and other stock-based compensation               1,453            282
       Amortization of intangibles                     27,454          5,565
       Restructuring and other charges                 13,824             --
     Total operating expenses                          72,267         15,981
 
     Loss from operations                             (56,463)       (10,188)
 
     Minority interest                                  1,867            478
       Loss on Sale of subsidiary                        (664)            --
       Interest income and other, net                   1,096          1,601
 
     Net loss                                         (54,164)        (8,109)
 
 
 
     Weighted average shares outstanding               35,327         19,718
 
     Net loss per share                                $(1.53)        $(0.41)
 
 
     Net loss applicable to common stockholders
     excluding charges related to amortization of
     intangibles and stock based compensation,
     restructuring and other charges, and the loss
     on sale of subsidiary                           $(10,769)       $(2,262)
 
     Net loss per share applicable to common
     stockholders excluding charges related to
     amortization of intangibles and stock based
     compensation, restructuring and other
     charges, and the loss on sale of subsidiary       $(0.30)        $(0.11)
 
 
                           Jupiter Media Metrix, Inc.
                      Condensed Consolidated Balance Sheet
                           (Unaudited, in thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
 
     Current assets:
     Cash and short term investments                  $74,283        $97,940
     Accounts receivable, net                          33,173         35,019
     Prepaid expenses and other                         7,420          6,819
     Total current assets                             114,876        139,778
 
     Property and equipment, net                       38,580         35,424
     Intangibles, net                                 434,131        461,615
     Minority interests                                 2,455          2,478
     Other assets                                       8,486          7,680
     Total assets                                    $598,528       $646,975
 
     Current liabilities:
     Accounts payable and accrued liabilities         $41,831        $32,212
     Advance billings                                  35,693         39,923
     Other current liabilities                          1,738          4,357
     Total current liabilities                         79,262         76,492
 
 
     Deferred Rent                                      2,038          1,659
 
     Total stockholders' equity                       517,228        568,824
 
     Total liabilities and stockholders' equity      $598,528       $646,975
 
 
                           Jupiter Media Metrix, Inc.
            Pro forma Condensed Consolidated Statement of Operations
              (Unaudited, in thousands except for per share data)
 
                                                         Three Months Ended
                                                              March 31
                                                       2001           2000
 
     Revenues
       Measurement                                    $14,279        $10,204
       Research Services                               14,296         11,977
       Events/Other                                       988          5,183
       Total revenues                                 $29,563        $27,364
     Costs of revenues                                 13,759         11,075
     Gross profit                                      15,804         16,289
 
     Operating expenses:
       Research and development                         7,201          3,456
       Sales and marketing                             11,703          9,339
       General and administration                      10,632          8,126
       Amortization of intangibles and stock
       based compensation                              28,907          27109
 
       Restructuring and other Material charges        13,824             --
     Total operating expenses                          72,267         48,030
 
 
     Loss from operations                             (56,463)       (31,741)
 
     Minority interest                                  1,867            478
     Loss on sale of subsidiary                          (664)            --
     Interest and other income, net                     1,096          2,509
     Gain on sale of investment                            --          5,895
     Net Loss                                         (54,164)       (22,859)
 
 
 
     Weighted average shares outstanding               35,327         34,639
 
     Net loss per share                                $(1.53)        $(0.66)
 
 
     Net loss applicable to common stockholders
     excluding charges related to amortization of
     intangibles, stock based compensation,
     restructuring and other charges. loss on sale
     of subsidiary and gain on sale of investments   $(10,769)       $(1,645)
 
 
     Net loss per share applicable to common
     stockholders excluding charges related to
     amortization of intangibles, stock based
     compensation, restructuring and other
     charges, loss on sale of subsidiary and loss
     on sale of investment                             $(0.30)         $(.05)
 
      Note:
      The results shown above are pro forma for the merger of Media Metrix,
      Inc. and Jupiter Communications, Inc., and are before merger-related
      costs and gains and losses on the sale of minority investments.
 
      Contacts:
      Media                                   Investors
      Stacie Leone                            Susan Hickey
      Jupiter Media Metrix, Inc.              Jupiter Media Metrix, Inc.
      917-534-6524                            917-534-6479
      sleone@jmm.com                          shickey@jmm.com
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X87261479
 
 

SOURCE Jupiter Media Metrix, Inc.
    NEW YORK, April 26 /PRNewswire/ --
 Jupiter Media Metrix, Inc. (Nasdaq:   JMXI), the global leader in market
 intelligence for the new economy, today announced financial results for the
 first quarter ended March 31, 2001. Jupiter Media Metrix' revenues were
 $29.6 million for the first quarter, an 8 percent increase versus pro forma
 revenues of $27.4 million for the first quarter of 2000, with pro forma
 syndicated subscription services revenues increasing by 29 percent. Net loss,
 excluding amortization and one-time charges recorded during the quarter, was
 $10.8 million, or $0.30 per share, compared with a pro forma net loss of
 $1.7 million or $0.05 per share for the same period 2000.
 
     "Though our revenues were affected by the softening economy and the
 continued decrease in our dot-com client base, I am pleased to report that
 during the first quarter we completed the majority of the work to integrate
 our operations to realize the benefits of our merger," said Tod Johnson,
 chairman and chief executive officer of Jupiter Media Metrix. "We now have an
 integrated sales and client service organization that is 100 percent focused
 on selling our leading measurement and analyst research services under the
 Jupiter Media Metrix brand. Client reaction has been very positive, and we
 were pleased to add 180 new client contracts during the quarter, including
 General Motors -- which is now subscribing to all three of our services,
 including Media Metrix, AdRelevance and Jupiter Research -- NEC, BBC News,
 Intelsat, and Ziff Davis Media."
 
     On a pro forma basis, revenue growth for the quarter versus the first
 quarter of 2000 was driven by a 40 percent increase in measurement revenues to
 $14.3 million, and a 19 percent increase in research services revenues to
 $14.3 million. Event and other revenues were down 81 percent versus the first
 quarter of 2000 to $988,000, reflecting the decrease in the total number of
 events held during the quarter, combined with softer attendance and
 sponsorships at the company's forums. Total contract value, defined as the
 annualized value of all subscriptions at the end of each period, was
 $105.0 million on March 31, 2001, a 18 percent increase compared to March 31,
 2000.
 
     The company implemented several expense containment initiatives during the
 quarter and continues to examine its cost structure in light of softer market
 conditions. In recognition of the company's near-term challenges, and to
 better position the company for long-term opportunities, Jupiter Media Metrix
 announced it will reduce its global workforce by approximately 18 percent over
 the coming weeks. "While these staff reductions are difficult, we feel they
 are necessary as we concentrate our resources on our core strengths and lead
 the company to profitability," said Mr. Johnson.
 
     The company also completed several specific market-focused initiatives
 during the quarter to leverage its unique product portfolio and address
 clients' evolving needs. The company's new product architecture, unveiled in
 early April, is designed to meet businesses' most critical needs: defining
 opportunities and threats; developing and implementing strategies; and
 benchmarking performance. "A client's partnership with Jupiter Media Metrix
 now means more integrated and personalized analysis and measurement tools,"
 said Gene DeRose, Jupiter Media Metrix vice chairman and president. "Clients
 benefit from industry- and region-specific services -- supported by our new
 Advisor program that offers an ongoing, proactive relationship with dedicated
 Jupiter Media Metrix Research analysts -- to help them analyze change and
 measure performance."
 
     Mr. Johnson concluded, "We'll continue to focus on the long-term success
 of our business by investing in our core measurement and analyst research
 services, building out the business globally in the countries where our
 clients want us to be and managing our expense structure in line with current
 and foreseeable market conditions."
 
     First Quarter 2001 Conference Call
     Today at 5:00 p.m. ET, Jupiter Media Metrix management will host a
 conference call and Webcast to discuss its first quarter 2001 results and
 outlook. The company welcomes all members of the financial and media
 communities to visit the "Investor Relations" area of http://www.jmm.com to
 listen to the conference call via live Webcast. The Webcast replay will be
 archived on the site through May 31, 2001.
 
     About Jupiter Media Metrix
     Jupiter Media Metrix, formed by the merger of Jupiter Communications and
 Media Metrix, is a global leader in market intelligence for the new economy.
 The company delivers innovative and comprehensive Internet measurement,
 analysis, intelligence and events to provide businesses with unmatched global
 resources for understanding and profiting from the Internet. Jupiter Media
 Metrix brings together world-class, innovative and market-leading products,
 services, research methodologies and people. Jupiter Media Metrix brands
 include Media Metrix, AdRelevance, Jupiter Research and Jupiter Events. The
 company is headquartered in New York City and operates worldwide, across the
 Americas, Asia Pacific, Europe (as Jupiter MMXI Europe), and the Middle East.
 Visit us at http://www.jmm.com for more information.
 
     Forward Looking Statements
     This press release contains statements that may constitute forward-looking
 statements within the meaning of the Private Securities Litigation Reform Act
 of 1995. These forward-looking statements are based on the company's current
 plans and expectations and are subject to risks and uncertainties that could
 cause such statements to differ materially from actual future events or
 results. Important factors that could cause Jupiter Media Metrix' actual
 results to differ materially from those described in a forward-looking
 statement include, among others, changes in the markets for the company's
 products and services, increased competition from existing or new competitors,
 the company's ability to manage its growth and to attract and retain
 experienced personnel, fluctuations in the company's quarterly and annual
 operating results, the company's ability to manage the international expansion
 of its business, risks associated with the integration of acquisitions and
 general business and economic conditions. Additional information about the
 risks that may affect Jupiter Media Metrix' business and financial results are
 discussed in the company's Annual Report on Form 10-K for the year ended
 December 31, 2000, which was filed with the SEC on April 2, 2001, and the
 company's quarterly reports on Form 10-Q filed with the SEC. You are
 encouraged to read this information carefully. Jupiter Media Metrix undertakes
 no obligation to update any forward-looking statement that may be made from
 time to time by or on behalf of the company.
 
                           Jupiter Media Metrix, Inc.
                 Condensed Consolidated Statement of Operations
              (Unaudited, in thousands except for per share data)
 
                                                         Three Months Ended
                                                             March 31,
                                                      2001            2000
 
     Revenues
       Measurement                                    $14,279        $10,204
       Research Services                               14,296             --
       Events/Other                                       988             --
     Total revenues                                   $29,563        $10,204
     Costs of revenues                                 13,759          4,411
     Gross profit                                      15,804          5,793
 
     Operating expenses:
       Research and development                         7,201          2,916
       Sales and marketing                             11,703          4,129
       General and administrative                      10,632          3,089
       Amortization of deferred compensation
       and other stock-based compensation               1,453            282
       Amortization of intangibles                     27,454          5,565
       Restructuring and other charges                 13,824             --
     Total operating expenses                          72,267         15,981
 
     Loss from operations                             (56,463)       (10,188)
 
     Minority interest                                  1,867            478
       Loss on Sale of subsidiary                        (664)            --
       Interest income and other, net                   1,096          1,601
 
     Net loss                                         (54,164)        (8,109)
 
 
 
     Weighted average shares outstanding               35,327         19,718
 
     Net loss per share                                $(1.53)        $(0.41)
 
 
     Net loss applicable to common stockholders
     excluding charges related to amortization of
     intangibles and stock based compensation,
     restructuring and other charges, and the loss
     on sale of subsidiary                           $(10,769)       $(2,262)
 
     Net loss per share applicable to common
     stockholders excluding charges related to
     amortization of intangibles and stock based
     compensation, restructuring and other
     charges, and the loss on sale of subsidiary       $(0.30)        $(0.11)
 
 
                           Jupiter Media Metrix, Inc.
                      Condensed Consolidated Balance Sheet
                           (Unaudited, in thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
 
     Current assets:
     Cash and short term investments                  $74,283        $97,940
     Accounts receivable, net                          33,173         35,019
     Prepaid expenses and other                         7,420          6,819
     Total current assets                             114,876        139,778
 
     Property and equipment, net                       38,580         35,424
     Intangibles, net                                 434,131        461,615
     Minority interests                                 2,455          2,478
     Other assets                                       8,486          7,680
     Total assets                                    $598,528       $646,975
 
     Current liabilities:
     Accounts payable and accrued liabilities         $41,831        $32,212
     Advance billings                                  35,693         39,923
     Other current liabilities                          1,738          4,357
     Total current liabilities                         79,262         76,492
 
 
     Deferred Rent                                      2,038          1,659
 
     Total stockholders' equity                       517,228        568,824
 
     Total liabilities and stockholders' equity      $598,528       $646,975
 
 
                           Jupiter Media Metrix, Inc.
            Pro forma Condensed Consolidated Statement of Operations
              (Unaudited, in thousands except for per share data)
 
                                                         Three Months Ended
                                                              March 31
                                                       2001           2000
 
     Revenues
       Measurement                                    $14,279        $10,204
       Research Services                               14,296         11,977
       Events/Other                                       988          5,183
       Total revenues                                 $29,563        $27,364
     Costs of revenues                                 13,759         11,075
     Gross profit                                      15,804         16,289
 
     Operating expenses:
       Research and development                         7,201          3,456
       Sales and marketing                             11,703          9,339
       General and administration                      10,632          8,126
       Amortization of intangibles and stock
       based compensation                              28,907          27109
 
       Restructuring and other Material charges        13,824             --
     Total operating expenses                          72,267         48,030
 
 
     Loss from operations                             (56,463)       (31,741)
 
     Minority interest                                  1,867            478
     Loss on sale of subsidiary                          (664)            --
     Interest and other income, net                     1,096          2,509
     Gain on sale of investment                            --          5,895
     Net Loss                                         (54,164)       (22,859)
 
 
 
     Weighted average shares outstanding               35,327         34,639
 
     Net loss per share                                $(1.53)        $(0.66)
 
 
     Net loss applicable to common stockholders
     excluding charges related to amortization of
     intangibles, stock based compensation,
     restructuring and other charges. loss on sale
     of subsidiary and gain on sale of investments   $(10,769)       $(1,645)
 
 
     Net loss per share applicable to common
     stockholders excluding charges related to
     amortization of intangibles, stock based
     compensation, restructuring and other
     charges, loss on sale of subsidiary and loss
     on sale of investment                             $(0.30)         $(.05)
 
      Note:
      The results shown above are pro forma for the merger of Media Metrix,
      Inc. and Jupiter Communications, Inc., and are before merger-related
      costs and gains and losses on the sale of minority investments.
 
      Contacts:
      Media                                   Investors
      Stacie Leone                            Susan Hickey
      Jupiter Media Metrix, Inc.              Jupiter Media Metrix, Inc.
      917-534-6524                            917-534-6479
      sleone@jmm.com                          shickey@jmm.com
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X87261479
 
 SOURCE  Jupiter Media Metrix, Inc.