Exhibit 99.1
Contact: Cameron Way (206) 373-9034
Onvia Increases Revenue 29% Over Prior Year
Net loss continues to decline significantly
Onvia, Inc. (Nasdaq: ONVI), Seattle, WA – November 9, 2004 – Seattle-based Onvia, a leading notification service for government agencies and business suppliers, announced its third quarter results today. Revenue increased to $3.3 million for the quarter ended September 30, 2004. Net loss in the third quarter decreased 53% to $612,000 compared to $1.3 million in the third quarter of 2003. In the third quarter of 2004 Onvia published approximately 166,000 opportunities, an increase of 7% compared to approximately 155,000 in the third quarter of 2003.
Financial Results
Revenue
| • | Revenue for the quarter ended September 30, 2004 was $3.3 million, compared to $2.6 million during the same quarter of 2003, an increase of 29%. Onvia earns revenue from its subscription-based lead notification service and enterprise sales program. |
Net Loss
| • | Net loss decreased to $612,000 for the quarter ended September 30, 2004, compared to $1.3 million during the same quarter of 2003, a decrease of 53%. |
Loss Per Share
| • | On a per share basis, the Company reported a net loss of $0.08 for the quarter ended September 30, 2004, compared to a net loss of $0.17 for the same period in 2003. The Company has approximately 7,729,000 shares outstanding. |
Cash Flow
| • | The Company finished the quarter with $29.1 million in cash and investments compared to $30.2 million in the second quarter of 2004. Cash used in operations during the third quarter of 2004 was $823,000, including net idle lease payments of $612,000. |
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Page 2 of 3 - Onvia Announces Third Quarter Results
Onvia’s Chairman and Chief Executive Officer Mike Pickett stated, “I am very pleased with our increasing revenue and decreasing net loss in the third quarter. Our growth rate was slightly impacted by the three Florida hurricanes which affected our ability to contact potential customers in the third quarter. A large percentage of our target customers reside in Florida because 30% of our agency partners are in that state.”
Onvia’s subscribers and enterprise licensees increased 7% to 25,100 as of September 30, 2004, compared to 23,400 the prior year. Our high value subscribers and enterprise licensees represented approximately 70% of total users as of September 30, 2004, compared to 61% as of September 30, 2003. The average annual subscription price increased to $755 in the third quarter, a 50% increase compared to the same quarter last year.
During the quarter, Onvia developed important strategic partnerships with 18 new government agencies that selected the DemandStar procurement solution to publish their procurement opportunities, including the Columbus Airport Authority and the City of Fort Worth, Texas.
A conference call hosted by Onvia’s management will be held Tuesday, November 9 at 1:30 p.m. PST to further discuss the financial results of the Company. This call will be broadcast via the Internet and may be accessed from the Company’s corporate page at www.onvia.com. A replay of the broadcast will remain available on the Company’s website starting two hours after the conference call through midnight, November 12, 2004. For investor relations questions please e-mailinvestorrelations@onvia.com.
About Onvia
Onvia, Inc. (Nasdaq: ONVI) helps businesses secure government contracts and government agencies find suppliers online. Onvia assists businesses in identifying and responding to bid opportunities from more than 50,000 government purchasing offices in the federal, state, and local government marketplace. Onvia also manages the distribution and reporting of requests for proposals and quotes from more than 430 government agencies nationwide. The size and strength of Onvia’s network allows suppliers and agencies to find better matches quickly, saving time and money. For more information, contact Onvia, Inc.: 1260 Mercer Street, Seattle, WA 98109. Tel: 206/282-5170, fax: 206/373-8961, visitwww.onvia.com, or emailinvestorrelations@onvia.com.
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Page 3 of 3 - Onvia Announces Third Quarter Results
Forward Looking Statements
This release may contain, in addition to historical information, forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or beliefs, and involve risks and uncertainties, including statements regarding improvement in Onvia’s financial performance, cash burn, subscriber information, premium data products, government agency participation, and the progress and benefits of Onvia’s execution of its business plan. Onvia’s actual results could differ materially from those described in the forward-looking statements.
The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: Onvia’s failure to identify and increase premium subscribers and enterprise licensees; premium subscribers’ rejection of increased subscription prices and/or comprehensive services; rejection of new product offerings and lower adoption rates of our premium data products; Onvia’s loss of standard subscribers may materially impact future revenue generation; Onvia’s failure to anticipate expenditures which could significantly increase Onvia’s operating costs and cash burn rate; Onvia’s inability to meet our projected renewal rates; dissatisfaction by new agencies and suppliers with Onvia’s provision of products and services; and Onvia’s inability to handle the increased bid flow on its online network caused by private lead offerings.
For a detailed discussion of these and other cautionary statements, please refer to Onvia’s filings with the Securities and Exchange Commission (SEC) including Onvia’s Annual Report on Form 10-K for the year ended December 31, 2003, Onvia’s Quarterly Report on Form 10-Q for the second quarter of 2004, and Onvia’s Proxy Statement filed with the SEC on May 13, 2004.
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