TheStreet.com Announces Lower Than Expected Consolidated Net Loss

Apr 26, 2001, 01:00 ET from TheStreet.com, Inc.

    NEW YORK, April 26 /PRNewswire/ -- TheStreet.com, Inc. (Nasdaq:   TSCM), a
 leading multimedia provider of financial commentary, analysis and news
 announced its financial results today for the first quarter ended
 March 31, 2001.
 
     Highlights include:
 
     *  Lower than expected Q1 2001 net loss of ($0.23) per share versus
        ($0.51) per share from Q1 2000.
 
     *  Strong balance sheet with a cash position of more than $58 million and
        zero debt.
 
     *  Total Q1 2001 revenues of $4.4 million.
 
     *  Subscription revenue of $2.0 million in Q1 2001 -- flat as expected
        from Q1 2000.
 
     *  Advertising revenue of $1.9 million in Q1 2001 -- down 26% from Q1
        2000.
 
     *  Record page views of 167 million in Q1 2001 -- up 40% from Q1 2000.
 
     *  Average monthly number of unique visitors of 3.6 million in Q1 2001 --
        flat from Q1 2000.
 
     *  Successfully diversified into new revenue streams, including broadcast
        radio and additional subscription products, both print and online.
 
     Net revenues for the first quarter of 2001 totaled $4.4 million, down 19%
 over the same period in 2000.  The Company reported a net loss for the first
 quarter of 2001, excluding a noncash compensation charge, goodwill
 amortization, and one-time restructuring and severance charges, of
 ($6.5) million or ($0.23) per share, comparing positively to a net loss of
 ($13.0) million, or ($0.51) per share in the first quarter of 2000.
     "The softening of the online advertising environment made this a difficult
 quarter.  However, even with the reduction in our advertising revenue, our
 bottom-line contributions improved significantly.  Our cost reduction efforts
 are starting to produce the desired results while we wait for our revenue
 diversification efforts to take hold this year," said Thomas J. Clarke, Chief
 Executive Officer of TheStreet.com.
     Total overall number of page views to TheStreet.com sites for the first
 quarter of 2001 was a record 167 million -- an increase of 40% from
 119 million in the first quarter of 2000, and a sequential increase of 4% from
 the fourth quarter of 2000.  Average monthly number of unique visitors during
 the first quarter of 2001 was 3.6 million, a sequential increase of 10%
 compared with 3.3 million unique users in the fourth quarter of 2000.
     Commenting on the record traffic metrics, Clarke continued, "We are
 pleased with the strong growth in our readership.  The careful aligning of our
 cost structure with the current market environment as measured by our revenue
 per employee, along with our pledge to provide long-term value to our
 customers without negatively affecting the quality of our products, has been
 verified by these results.
     The Company broadened its efforts to diversify its existing content and
 talent base into new revenue streams with the following initiatives:
 
     *  An exclusive revenue sharing partnership with Premiere Radio Networks,
        the syndication arm of Clear Channel Communications, for a daily
        nationally syndicated broadcast radio program hosted by Jim Cramer.
 
     *  Providing real time streaming quotes and portfolio tracker, another
        subscription product.
 
     *  Developed and began marketing a paid subscription research product for
        the institutional market.
 
     Clarke continued, "As a pioneer of producing subscription-based services,
 we are firm believers that the diversification of our revenue streams will
 prove highly successful.  Our introduction of a subscription-based
 institutional research product and a subscription-based real-time portfolio
 tracker for both our free and paid sites are the latest examples of our
 commitment to this type of business model.  In addition, our exclusive
 revenue-sharing partnership with Premiere Radio Networks emphasizes our belief
 that cross-platform advertising will provide significant revenue-generating
 opportunities.
     "With the continued uncertainty of the online advertising market, it is
 more important than ever to take hard actions to protect against adverse
 economic and market conditions.  As we continue to explore ways to leverage
 our content across a variety of platforms, we remain focused on maintaining
 the efficiency of our operations.  We have said before the name of the game is
 profitability.  With a healthy cash position of over $58 million and zero
 debt, we're well-positioned to succeed."
     TheStreet.com will conduct a conference call today, April 26, at
 11:00 a.m. EDT to discuss these results. The Company welcomes all interested
 parties to listen to the Web cast of its call at:
 
     http://www.thestreet.com/tsc/ir/conferencecalls.html
 
     About TheStreet.com, Inc.
     TheStreet.com, Inc. (Nasdaq:   TSCM) is a leading multimedia provider of
 original, timely, insightful and trustworthy financial commentary, analysis
 and news. TheStreet.com brand is built on our best-in-class editorial team of
 experienced financial commentators and journalists. On the Internet, our free,
 advertising-supported web site, TheStreet.com, is accompanied by our
 subscription-based site, RealMoney.com. In addition, our content is also
 available across diverse product offerings, including print media, radio,
 books and conferences, and our strategic relationships with leading media,
 technology and financial services companies further assist us in leveraging
 our content and products.
 
     Statements contained in this news release not related to historical facts
 may be deemed forward-looking statements as that term is defined in the
 Private Securities Litigation Reform Act of 1995. Such forward-looking
 statements are subject to risks and uncertainties (described in the Company's
 SEC filings) which could cause actual results to differ.
 
                              THESTREET.COM, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                ($ in thousands)
 
                                             March 31, 2001   December 31, 2000
                                                (unaudited)
     ASSETS
     Current Assets:
     Cash and short term equivalents                $58,482            $72,160
     Accounts receivable - net                        1,970              4,009
     Other receivables                                1,392                867
     Prepaid expenses and other current
      assets                                          3,518              2,882
     Current assets of discontinued
      operations                                         13              1,842
           Total current assets                      65,375             81,760
 
     Property and equipment - net                     9,894             10,279
     Goodwill and intangibles - net                   4,715              4,913
     Long-term investment                             2,250              2,250
     Other assets                                       800                780
     Non-current assets of discontinued
      operations                                         --                426
           Total assets                             $83,034           $100,408
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current Liabilities:
     Accounts payable and accrued expenses           $7,419            $15,386
     Restructuring reserve                            5,431              6,485
     Deferred revenue                                 4,308              3,897
     Other current liabilities                          407              1,264
           Total current liabilities                 17,565             27,032
     Deferred rent                                    1,933              1,996
           Total liabilities                         19,498             29,028
 
     Stockholders' equity
     Stockholders' equity                            63,536             71,380
 
           Total liabilities and
            stockholders' equity                    $83,034           $100,408
 
 
                              THESTREET.COM, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    ($ in thousands, except per share data)
 
                                                  For the Three Months Ended
                                                            March 31,
                                                     2001               2000
                                                           (Unaudited)
     Net revenues:
     Advertising & e-commerce revenues             $1,944             $2,624
     Subscription revenues                          2,038              2,037
     Other revenues                                   409                730
           Total net revenues                       4,391              5,391
     Cost of revenues                               2,979              3,376
              Gross profit                          1,412              2,015
 
     Operating expenses:
     Product development expenses                   2,718              3,972
     Sales and marketing expenses                   3,514              5,440
     General and administrative expenses            3,066              3,941
     Noncash compensation expense                     229                544
     Restructuring expenses                          (524)                --
     Severance expense                                552                 --
        Total operating expenses                    9,555             13,897
        Loss from continuing operations            (8,143)           (11,882)
     Interest income                                  940              1,536
        Net loss from continuing
         operations                                (7,203)           (10,346)
     Loss from discontinued operations                 --             (3,537)
        Net loss                                  $(7,203) *        $(13,883) *
 
     Net loss per share - basic and diluted:
        Continuing operations                      $(0.26)            $(0.41)
        Discontinued operations                        --              (0.14)
     Net loss                                      $(0.26) *          $(0.55) *
     Weighted average basic and diluted
      shares outstanding                           27,856             25,291
 
     * Excluding restructuring expenses, severance expense, noncash
       compensation charge, goodwill amortization, and the effect of dividends
       on preferred stock, net loss for the three months ended March 31, 2001
       amounts to ($6.5M) or ($0.23) per share, compared to net loss for the
       three months ended March 31, 2000 of ($13.0M) or ($0.51) per share.
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X85624078
 
 

SOURCE TheStreet.com, Inc.
    NEW YORK, April 26 /PRNewswire/ -- TheStreet.com, Inc. (Nasdaq:   TSCM), a
 leading multimedia provider of financial commentary, analysis and news
 announced its financial results today for the first quarter ended
 March 31, 2001.
 
     Highlights include:
 
     *  Lower than expected Q1 2001 net loss of ($0.23) per share versus
        ($0.51) per share from Q1 2000.
 
     *  Strong balance sheet with a cash position of more than $58 million and
        zero debt.
 
     *  Total Q1 2001 revenues of $4.4 million.
 
     *  Subscription revenue of $2.0 million in Q1 2001 -- flat as expected
        from Q1 2000.
 
     *  Advertising revenue of $1.9 million in Q1 2001 -- down 26% from Q1
        2000.
 
     *  Record page views of 167 million in Q1 2001 -- up 40% from Q1 2000.
 
     *  Average monthly number of unique visitors of 3.6 million in Q1 2001 --
        flat from Q1 2000.
 
     *  Successfully diversified into new revenue streams, including broadcast
        radio and additional subscription products, both print and online.
 
     Net revenues for the first quarter of 2001 totaled $4.4 million, down 19%
 over the same period in 2000.  The Company reported a net loss for the first
 quarter of 2001, excluding a noncash compensation charge, goodwill
 amortization, and one-time restructuring and severance charges, of
 ($6.5) million or ($0.23) per share, comparing positively to a net loss of
 ($13.0) million, or ($0.51) per share in the first quarter of 2000.
     "The softening of the online advertising environment made this a difficult
 quarter.  However, even with the reduction in our advertising revenue, our
 bottom-line contributions improved significantly.  Our cost reduction efforts
 are starting to produce the desired results while we wait for our revenue
 diversification efforts to take hold this year," said Thomas J. Clarke, Chief
 Executive Officer of TheStreet.com.
     Total overall number of page views to TheStreet.com sites for the first
 quarter of 2001 was a record 167 million -- an increase of 40% from
 119 million in the first quarter of 2000, and a sequential increase of 4% from
 the fourth quarter of 2000.  Average monthly number of unique visitors during
 the first quarter of 2001 was 3.6 million, a sequential increase of 10%
 compared with 3.3 million unique users in the fourth quarter of 2000.
     Commenting on the record traffic metrics, Clarke continued, "We are
 pleased with the strong growth in our readership.  The careful aligning of our
 cost structure with the current market environment as measured by our revenue
 per employee, along with our pledge to provide long-term value to our
 customers without negatively affecting the quality of our products, has been
 verified by these results.
     The Company broadened its efforts to diversify its existing content and
 talent base into new revenue streams with the following initiatives:
 
     *  An exclusive revenue sharing partnership with Premiere Radio Networks,
        the syndication arm of Clear Channel Communications, for a daily
        nationally syndicated broadcast radio program hosted by Jim Cramer.
 
     *  Providing real time streaming quotes and portfolio tracker, another
        subscription product.
 
     *  Developed and began marketing a paid subscription research product for
        the institutional market.
 
     Clarke continued, "As a pioneer of producing subscription-based services,
 we are firm believers that the diversification of our revenue streams will
 prove highly successful.  Our introduction of a subscription-based
 institutional research product and a subscription-based real-time portfolio
 tracker for both our free and paid sites are the latest examples of our
 commitment to this type of business model.  In addition, our exclusive
 revenue-sharing partnership with Premiere Radio Networks emphasizes our belief
 that cross-platform advertising will provide significant revenue-generating
 opportunities.
     "With the continued uncertainty of the online advertising market, it is
 more important than ever to take hard actions to protect against adverse
 economic and market conditions.  As we continue to explore ways to leverage
 our content across a variety of platforms, we remain focused on maintaining
 the efficiency of our operations.  We have said before the name of the game is
 profitability.  With a healthy cash position of over $58 million and zero
 debt, we're well-positioned to succeed."
     TheStreet.com will conduct a conference call today, April 26, at
 11:00 a.m. EDT to discuss these results. The Company welcomes all interested
 parties to listen to the Web cast of its call at:
 
     http://www.thestreet.com/tsc/ir/conferencecalls.html
 
     About TheStreet.com, Inc.
     TheStreet.com, Inc. (Nasdaq:   TSCM) is a leading multimedia provider of
 original, timely, insightful and trustworthy financial commentary, analysis
 and news. TheStreet.com brand is built on our best-in-class editorial team of
 experienced financial commentators and journalists. On the Internet, our free,
 advertising-supported web site, TheStreet.com, is accompanied by our
 subscription-based site, RealMoney.com. In addition, our content is also
 available across diverse product offerings, including print media, radio,
 books and conferences, and our strategic relationships with leading media,
 technology and financial services companies further assist us in leveraging
 our content and products.
 
     Statements contained in this news release not related to historical facts
 may be deemed forward-looking statements as that term is defined in the
 Private Securities Litigation Reform Act of 1995. Such forward-looking
 statements are subject to risks and uncertainties (described in the Company's
 SEC filings) which could cause actual results to differ.
 
                              THESTREET.COM, INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                ($ in thousands)
 
                                             March 31, 2001   December 31, 2000
                                                (unaudited)
     ASSETS
     Current Assets:
     Cash and short term equivalents                $58,482            $72,160
     Accounts receivable - net                        1,970              4,009
     Other receivables                                1,392                867
     Prepaid expenses and other current
      assets                                          3,518              2,882
     Current assets of discontinued
      operations                                         13              1,842
           Total current assets                      65,375             81,760
 
     Property and equipment - net                     9,894             10,279
     Goodwill and intangibles - net                   4,715              4,913
     Long-term investment                             2,250              2,250
     Other assets                                       800                780
     Non-current assets of discontinued
      operations                                         --                426
           Total assets                             $83,034           $100,408
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current Liabilities:
     Accounts payable and accrued expenses           $7,419            $15,386
     Restructuring reserve                            5,431              6,485
     Deferred revenue                                 4,308              3,897
     Other current liabilities                          407              1,264
           Total current liabilities                 17,565             27,032
     Deferred rent                                    1,933              1,996
           Total liabilities                         19,498             29,028
 
     Stockholders' equity
     Stockholders' equity                            63,536             71,380
 
           Total liabilities and
            stockholders' equity                    $83,034           $100,408
 
 
                              THESTREET.COM, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    ($ in thousands, except per share data)
 
                                                  For the Three Months Ended
                                                            March 31,
                                                     2001               2000
                                                           (Unaudited)
     Net revenues:
     Advertising & e-commerce revenues             $1,944             $2,624
     Subscription revenues                          2,038              2,037
     Other revenues                                   409                730
           Total net revenues                       4,391              5,391
     Cost of revenues                               2,979              3,376
              Gross profit                          1,412              2,015
 
     Operating expenses:
     Product development expenses                   2,718              3,972
     Sales and marketing expenses                   3,514              5,440
     General and administrative expenses            3,066              3,941
     Noncash compensation expense                     229                544
     Restructuring expenses                          (524)                --
     Severance expense                                552                 --
        Total operating expenses                    9,555             13,897
        Loss from continuing operations            (8,143)           (11,882)
     Interest income                                  940              1,536
        Net loss from continuing
         operations                                (7,203)           (10,346)
     Loss from discontinued operations                 --             (3,537)
        Net loss                                  $(7,203) *        $(13,883) *
 
     Net loss per share - basic and diluted:
        Continuing operations                      $(0.26)            $(0.41)
        Discontinued operations                        --              (0.14)
     Net loss                                      $(0.26) *          $(0.55) *
     Weighted average basic and diluted
      shares outstanding                           27,856             25,291
 
     * Excluding restructuring expenses, severance expense, noncash
       compensation charge, goodwill amortization, and the effect of dividends
       on preferred stock, net loss for the three months ended March 31, 2001
       amounts to ($6.5M) or ($0.23) per share, compared to net loss for the
       three months ended March 31, 2000 of ($13.0M) or ($0.51) per share.
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X85624078
 
 SOURCE  TheStreet.com, Inc.