EXHIBIT 2
EarthWeb Inc.
Unaudited Historical Condensed Carved-Out Results of Operations
Year Ended December 31, 1999 and Nine Months Ended September 30, 2000
( $ in Thousands )
Below are the Unaudited Historical Condensed Carved-Out Results of Operations of
EarthWeb Inc. for each of the four quarters in the year ended December 31, 1999
and for each of the three quarters in the period ended September 30, 2000.
The Information presented herein has been derived from the accounting records
of the company. However, it is not intended to present the results of
operations of the career solutions company, comprising Dice.com and the Measure
Up business units and the remaining corporate overhead, in accordance with
generally accepted accounting principles of the United States of America.
Although this information gives effect to the sale and disposition of the
Content and Education Businesses, it is not necessarily indicative of the
results of operations that would have been attained if this sale and
these dispositions had occurred on the dates indicated or which may be
attained in the future. Such statements should be read in conjunction with the
historical financial statements of EarthWeb Inc.
These results of operations are not meant to be proforma financial statements,
as required by Regulation S-X Article 11 Proforma Information, and accordingly
do not reflect all adjustments required by these regulations.
EarthWeb Inc.
Unaudited Historical Condensed Carved-out Results of Operations
Year Ended December 31, 1999 and Nine Months Ended September 30, 2000
($ In Thousands)
1999 1999 1999 1999 1999
Q 1 Q 2 Q 3 Q 4 Full Year
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AS REPORTED: (1)
Revenue $ 3,732 $ 7,199 $ 8,653 $ 11,466 $ 31,050
Sequential Growth 161% 93% 20% 33% 827%
Cost of Revenues 1,479 2,587 3,078 3,824 10,968
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Gross Profit 2,253 4,612 5,575 7,642 20,082
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Gross Margins 60% 64% 64% 67% 65%
Operating Expenses:
Product Development 736 879 1,386 1,113 4,114
Sales and Marketing 5,188 6,724 7,019 8,784 27,715
General and Administrative 1,597 3,031 2,403 2,844 9,875
Depreciation 247 365 453 612 1,677
Amortization 1,531 2,948 3,523 4,216 12,218
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Total Operating Expenses 9,299 13,947 14,784 17,569 55,599
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Loss From Operations (7,046) (9,335) (9,209) (9,927) (35,517)
Interest Income (Expense) 234 159 258 153 804
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Net Loss $ (6,812) $ (9,176) $ (8,951) $ (9,774) $ (34,713)
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EBITA (5) $ (5,515) $ (6,387) $ (5,686) $ (5,711) $ (23,299)
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EBITDA (6) $ (5,268) $ (6,022) $ (5,233) $ (5,099) $ (21,622)
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2000 2000 2000 YTD
Q 1 Q 2 Q 3 9/30/00
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AS REPORTED: (1)
Revenue $ 13,658 $ 16,502 $ 21,027 $ 51,187
Sequential Growth 19% 21% 27% 161%
Cost of Revenues 4,444 4,582 4,866 13,892
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Gross Profit 9,214 11,920 16,161 37,295
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Gross Margins 67% 72% 77% 73%
Operating Expenses:
Product Development 2,002 2,914 1,866 6,782
Sales and Marketing 9,830 10,207 11,622 31,659
General and Administrative 2,862 3,283 3,370 9,515
Depreciation 788 1,057 1,637 3,482
Amortization 4,966 6,184 6,495 17,645
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Total Operating Expenses 20,448 23,645 24,990 69,083
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Loss From Operations (11,234) (11,725) (8,829) (31,788)
Interest Income (Expense) (397) (630) (764) (1,791)
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Net Loss $ (11,631) $ (12,355) $ (9,593) $ (33,579)
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EBITA (5) $ (6,268) $ (5,541) $ (2,334) $ (14,143)
============================================== ===================
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EBITDA (6) $ (5,480) $ (4,484) $ (697) $ (10,661)
============================================== ===================
1999 1999 1999 1999 1999
Q 1 Q 2 Q 3 Q 4 Full Year
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CONTENT BUSINESS (2)
Revenue $ 1,596 $ 3,299 $ 3,543 $ 4,456 $ 12,894
Sequential Growth 107% 7% 26%
Cost of Revenues 1,081 1,867 2,165 2,694 7,807
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Gross Profit 515 1,432 1,378 1,762 5,087
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Gross Margins 32% 43% 39% 40% 39%
Operating Expenses:
Product Development 699 779 1,041 822 3,341
Sales and Marketing 3,492 4,928 4,737 6,302 19,459
General and Administrative 379 1,429 1,037 1,409 4,254
Depreciation 208 286 370 510 1,374
Amortization 226 995 1,323 2,016 4,560
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Total Operating Expenses 5,004 8,417 8,508 11,059 32,988
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Loss From Operations (4,489) (6,985) (7,130) (9,297) (27,901)
Interest Income (Expense) 0 0 0 0 0
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Net Loss $ (4,489) $ (6,985) $ (7,130) $ (9,297) $ (27,901)
=====================================================================
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EBITA (5) $ (4,263) $ (5,990) $ (5,807) $ (7,281) $ (23,341)
=====================================================================
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EBITDA (6) $ (4,055) $ (5,704) $ (5,437) $ (6,771) $ (21,967)
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2000 2000 2000 YTD
Q 1 Q 2 Q 3 9/30/00
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CONTENT BUSINESS: (2)
Revenue $ 4,449 $ 5,286 $ 4,561 $ 14,296
Sequential Growth 0% 19% -14% 69%
Cost of Revenues 2,791 3,168 2,996 8,955
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Gross Profit 1,658 2,118 1,565 5,341
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Gross Margins 37% 40% 34% 37%
Operating Expenses:
Product Development 1,458 2,086 811 4,355
Sales and Marketing 6,103 5,905 5,578 17,586
General and Administrative 1,195 1,404 1,193 3,792
Depreciation 633 869 1,326 2,828
Amortization 2,298 2,764 2,759 7,821
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Total Operating Expenses 11,687 13,028 11,667 36,382
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Loss From Operations (10,029) (10,910) (10,102) (31,041)
Interest Income (Expense) (134) (28) (21) (183)
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Net Loss $ (10,163) $ (10,938) $ (10,123) $ (31,224)
=============================================== =============
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EBITA (5) $ (7,731) $ (8,146) $ (7,343) $ (23,220)
=============================================== =============
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EBITDA (6) $ (7,098) $ (7,277) $ (6,017) $ (20,392)
=============================================== =============
EarthWeb Inc.
Unaudited Historical Condensed Carved-out Results of Operations
Year Ended December 31, 1999 and Nine Months Ended September 30, 2000
($ In Thousands)
1999 1999 1999 1999 1999
Q 1 Q 2 Q 3 Q 4 Full Year
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EDUCATION BUSINESS: (3)
Revenue $ 120 $ 272 $ 727 $ 1,163 $ 2,282
Sequential Growth 127% 167% 60%
Cost of Revenues 69 157 421 615 1,262
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Gross Profit 51 115 306 548 1,020
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Gross Margins 43% 42% 42% 47% 45%
Operating Expenses:
Product Development 1 1 4 14 20
Sales and Marketing 43 201 249 300 793
General and Administrative 12 206 106 125 449
Depreciation 0 1 1 1 3
Amortization 0 0 0 0 0
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Total Operating Expenses 56 409 360 440 1,265
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Income (Loss) From Operations $ (5) $ (294) $ (54) $ 108 $ (245)
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EBITA (5) $ (5) $ (294) $ (54) $ 108 $ (245)
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EBITDA (6) $ (5) $ (293) $ (53) $ 109 $ (242)
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2000 2000 2000 YTD
Q 1 Q 2 Q 3 9/30/00
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EDUCATION BUSINESS: (3)
Revenue $ 1,332 $ 930 $ 953 $ 3,215
Sequential Growth 15% -30% 2% 187%
Cost of Revenues 942 617 749 2,308
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Gross Profit 390 313 204 907
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Gross Margins 29% 34% 21% 28%
Operating Expenses:
Product Development 0 0 8 8
Sales and Marketing 449 382 306 1,137
General and Administrative 121 116 80 317
Depreciation 1 1 1 3
Amortization 0 0 0 0
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Total Operating Expenses 571 499 395 1,465
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Income (Loss) From Operations $ (181) $ (186) $ (191) $ (558)
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EBITA (5) $ (181) $ (186) $ (191) $ (558)
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EBITDA (6) $ (180) $ (185) $ (190) $ (555)
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1999 1999 1999 1999 1999
Q 1 Q 2 Q 3 Q 4 Full Year
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CAREER SOLUTIONS COMPANY: (4)
Revenue $ 2,016 $ 3,628 $ 4,383 $ 5,847 $ 15,874
Sequential Growth 80% 21% 33%
Cost of Revenues 329 563 492 515 1,899
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Gross Profit 1,687 3,065 3,891 5,332 13,975
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Gross Margins 84% 84% 89% 91% 88%
Operating Expenses:
Product Development 36 99 341 277 753
Sales and Marketing 1,653 1,595 2,033 2,182 7,463
General and Administrative 1,206 1,396 1,260 1,310 5,172
Depreciation 39 78 82 101 300
Amortization 1,305 1,953 2,200 2,200 7,658
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Total Operating Expenses 4,239 5,121 5,916 6,070 21,346
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Income (Loss) From Operations (2,552) (2,056) (2,025) (738) (7,371)
Interest Income (Expense) 234 159 258 153 804
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Net Loss $ (2,318) $ (1,897) $ (1,767) $ (585) $ (6,567)
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Cash Net Income (Loss) (7) $ (1,013) $ 56 $ 433 $ 1,615 $ 1,091
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EBITA (5) $ (1,247) $ (103) $ 175 $ 1,462 $ 287
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EBITDA (6) $ (1,208) $ (25) $ 257 $ 1,563 $ 587
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2000 2000 2000 YTD
Q1 Q2 Q3 9/30/00
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CAREER SOLUTIONS COMPANY: (4)
Revenue $ 7,877 $ 10,286 $ 15,513 $ 33,676
Sequential Growth 35% 31% 51% 236%
Cost of Revenues 711 797 1,121 2,629
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Gross Profit 7,166 9,489 14,392 31,047
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Gross Margins 91% 92% 93% 92%
Operating Expenses:
Product Development 544 828 1,047 2,419
Sales and Marketing 3,278 3,920 5,738 12,936
General and Administrative 1,546 1,763 2,097 5,406
Depreciation 154 187 310 651
Amortization 2,668 3,420 3,736 9,824
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Total Operating Expenses 8,190 10,118 12,928 31,236
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Income (Loss) From Operations (1,024) (629) 1,464 (189)
Interest Income (Expense) (263) (602) (743) (1,608)
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Net Income (Loss) $ (1,287) $ (1,231) $ 721 $ (1,797)
============================================== ===================
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Cash Net Income (Loss) (7) $ 1,381 $ 2,189 $ 4,457 $ 8,027
============================================== ===================
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EBITA (5) $ 1,644 $ 2,791 $ 5,200 $ 9,635
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EBITDA (6) $ 1,798 $ 2,978 $ 5,510 $ 10,286
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(1) Represents financial information derived from the Company's previously filed
10Qs or 10Ks.
(2) Represents the unaudited results of operation for those properties sold to
internet.com and for the paid subscription product lines that were exited.
(3) As reported in 8-K filed on December 11, 2000.
(4) Results of operations for the continuing career solutions company comprising
the Dice.com and MeasureUp units and the remaining corporate overhead.
(5) EBITA is calculated by adding back, interest, taxes and amortization to net
loss.
(6) EBITDA is calculated by adding back interest, taxes, depreciation and
amortization to net loss.
(7) Cash Net Income (Loss) is calculated by adding back amortization to net
loss.