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EXHIBIT 99.2
FOR IMMEDIATE RELEASE
THURSDAY, NOVEMBER 4, 1999
COMPS.COM REPORTS 32% INCREASE IN REVENUES FOR THIRD QUARTER
- TOTAL INTERNET-RELATED REVENUES AT 41% OF TOTAL REVENUES IN THIRD
QUARTER
- 3 NEW GEOGRAPHIC MARKETS OPENED IN THIRD QUARTER
SAN DIEGO, CA, November 4, 1999 -- COMPS.COM, Inc. (NASDAQ: CDOT) today reported
increased revenues and total Internet-related revenues at 41% of total revenues
in the third quarter ended September 30, 1999.
Net revenues for the third quarter ended September 30, 1999 increased to $4.4
million from $3.4 million in the third quarter of 1998. The net loss
attributable to common stockholders in the third quarter 1999 was $3.2 million
or ($0.27) per common share, as compared to a net loss attributable to common
stockholders of $320,000 or ($0.09) per common share in the third quarter of
1998. Preferred stock outstanding prior to the initial public offering which was
converted into common stock in conjunction with the Company's initial public
offering has been excluded in computing the loss per share for the third quarter
of 1998.
During the quarter ended September 30, 1999, the Company reported approximately
31% of its revenues were a result of its services and products delivered solely
on the Internet as compared to approximately 7% in the same period of 1998 and
26% in the second quarter of 1999. In addition, during the quarter ended
September 30, 1999, the Company reported approximately 10% of its revenues were
derived from Internet-related transactions such as file transfer protocol (FTP)
downloading, resulting in total Internet-related revenues of approximately 41%
of net revenues in the third quarter of 1999.
For the nine months ended September 30, 1999, net revenues increased to $11.8
million from $9.7 million for the same period in 1998. The net loss attributable
to common stockholders for the first nine months of 1999 was $7.5 million or
($0.94) per common share, as compared to a net loss attributable to common
stockholders of $719,000 or ($0.20) per common share for the same period in
1998.
Christopher Crane, Chief Executive Officer of COMPS.COM, said, "We are pleased
to see increased revenues in the third quarter. During the quarter, we completed
three acquisitions that provide COMPS.COM with strong market coverage in Austin
and Houston. In addition, in the third quarter we initiated coverage in 3 new
markets: Cincinnati/Dayton, Detroit/Toledo and St. Louis. As a result, COMPS.COM
now covers 47 markets in the US, an increase of 13 markets since January 1 of
this year. This extensive market coverage provides a unique foundation for our
new commercial real estate transaction services delivered on our website. Our
customers' usage of DealPoint and RealBid continues to grow. Our new Internet
borrower / lender
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matching service is expected to be introduced before the end of December, 1999
and should generate increased traffic at our website ."
The Company has separately announced today that it has entered into a strategic
business combination agreement with COSTAR GROUP, Inc.
COMPS.COM completed its initial public offering on May 10, 1999, selling 4.5
million shares of common stock and raising net proceeds of approximately $61.3
million after underwriting fees and offering expenses.
COMPS.COM is a national provider of comprehensive commercial real estate sales
information both offline and on the Internet. Over the last 17 years, the
Company has developed a highly evolved data collection and confirmation system
to provide information on commercial real estate properties. This information is
verified by the Company's researchers and includes sale prices, income and
expenses, capitalization rates, loan data, property photographs, buyers,
sellers, brokers and other key details.
Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of the Company. We wish to caution you that these statements are
only predictions and that actual events or results may differ materially. We
refer you to the documents the Company files from time to time with the
Securities and Exchange Commission, specifically, the Company's most recent
Registration Statement on Form S-1 and Form 10-Qs filed subsequently. These
documents contain and identify important factors that could cause the actual
results to differ materially from those contained in our projections or
forward-looking statements, including, among others, uncertainty of achieving
profitability, little history offering our products over the Internet, ability
to timely introduce new services and products, need to continue to develop and
offer new products, fluctuations in our quarterly results, volatility of stock
price, and future growth subject to risks. We undertake no obligation to update
the statements made in this press release as the facts change.
Please visit the COMPS.COM web site www.comps.com for additional information
about the Company, its products and services.
-Financial tables to follow-
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COMPS.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1999 1998 1999 1998
------------ ------------ ------------ ------------
Net revenues $ 4,439 $ 3,359 $ 11,839 $ 9,724
Cost of revenues 2,521 1,468 6,248 4,061
------------ ------------ ------------ ------------
Gross profit 1,918 1,891 5,591 5,663
Operating expenses:
Selling and marketing 2,413 979 5,422 2,805
Product development and engineering 710 395 1,725 925
General and administrative 1,745 671 4,319 2,040
Amortization of intangibles 464 -- 864 72
Stock-based charges 252 9 830 13
------------ ------------ ------------ ------------
Total operating expenses 5,584 2,054 13,160 5,855
Loss from operations (3,666) (163) (7,569) (192)
Interest income (expense), net 472 (38) 468 (193)
------------ ------------ ------------ ------------
Net loss (3,194) (201) (7,101) (385)
Dividend accretion on preferred stock -- (119) (435) (334)
------------ ------------ ------------ ------------
Net loss attributable to common stockholders $ (3,194) $ (320) $ (7,536) $ (719)
============ ============ ============ ============
Net loss per share attributable to common
stockholders, basic and diluted $ (0.27) $ (0.09) $ (0.94) $ (0.20)
============ ============ ============ ============
Shares used in computing net loss per share
attributable to common stockholders, basic
and diluted 11,850,163 3,526,199 8,009,578 3,513,867
============ ============ ============ ============
-more-
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COMPS.COM, INC.
CONSOLIDATED BALANCE SHEETS
9/30/99 12/31/98
----------- ----------
(UNAUDITED)
Current Assets
Cash and cash equivalents $ 31,778 $ 378
Marketable securities 17,734 --
Accounts receivable 3,328 3,166
Prepaid expenses and other 1,090 184
-------- --------
Total current assets 53,930 3,728
Furniture and equipment, net 2,521 1,471
Acquired intangibles, net of amortization 9,246 3,179
Deposits and other 2,200 36
-------- --------
TOTAL ASSETS $ 67,897 $ 8,414
======== ========
Current Liabilities
Accounts payable $ 859 $ 531
Accrued liabilities 1,695 1,020
Current portion of long-term debt 1,040 979
Current portion of capital leases 22 49
Deferred revenue 5,263 5,503
-------- --------
Total current liabilities 8,879 8,082
Long-term debt, less current portion 3,700 1,101
Capital lease obligations, less current portion 11 22
Deferred rent 73 71
-------- --------
Total liabilities 12,663 9,276
Preferred stock -- 7,009
Stockholders' equity (deficit)
Common stock 114 30
Additional paid in capital 76,981 7,745
Warrants 514 398
Deferred compensation (3,590) (4,487)
Accumulated deficit (18,785) (11,557)
-------- --------
Total stockholders' equity (deficit) 55,234 (7,871)
# # #
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-------- --------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) $ 67,897 $ 8,414
======== ========
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