Exhibit 99.1
EDGAR Online Announces First Quarter Results
Continued Growth in Subscription Revenue
NORWALK, Conn.--(BUSINESS WIRE)--April 27, 2004--EDGAR(R)
Online(R), Inc. (NASDAQ: EDGR) today reported first quarter 2004
subscription growth of 13% over the same period last year and up 4%
from the previous quarter. Since inception, the Company's subscription
revenues have grown incrementally each quarter. The average annual
revenue reached $247 per subscriber, an increase of 17% from the first
quarter of 2003 and an 8% increase from last quarter. EDGAR Online is
a financial information company specializing in making complex
regulatory reporting by public companies actionable and easy-to-use.
EDGAR Online reported revenue of $3.1 million for the quarter
ended March 31, 2004, a decrease of 18% compared to the same period
last year. Strong growth in the Company's core subscription business
was offset by a $814,000 or 80% decline in the Company's technical
services revenue. Seat-based subscription revenue increased 13% from
the first quarter last year primarily due to an overall increase of
over 1,800 seats of its premium EDGAR(R)Online Pro service to
financial professionals. At March 31, 2004, the Company had
approximately 26,000 total subscribers. In addition, deferred revenue
was $2.3 million, a 26% increase over the same quarter last year and
up 14% from last quarter. This represents billings that will be
recognized as revenue in future quarters.
Susan Strausberg, EDGAR Online's President and CEO said, "This
quarter's results continue to demonstrate our shift from lower margin
technical services towards our core subscription business and digital
data feed services. The foundation for our future is solid and we
believe our level of customer satisfaction is very high. We continue
to focus on revenue growth, improving already solid renewal rates,
penetrating new markets and introducing new products and enhancements.
Looking forward, we expect to see sequential overall revenue increases
every quarter and expect year-over-year increases beginning in the
third quarter of 2004."
During the first quarter of 2004, gross margins remained
relatively consistent at 85% compared to 86% in the same quarter of
last year. Operating loss was ($863,000), or ($0.05) per share, for
the first quarter of 2004, compared to an operating loss of ($1.1
million), or ($0.06) per share, for the same quarter last year. Net
loss was ($861,000), or ($0.05) per share, for the first quarter of
2004 compared to ($1.1 million), or ($0.07) per share, in the same
period a year ago.
Greg D. Adams, EDGAR Online's COO and CFO said, "We have recently
filed a Registration Statement pursuant to a secondary public offering
through which we anticipate receiving net proceeds of over $5 million
in the second quarter 2004. This capital infusion will firm up our
balance sheet and enable us to capitalize on our upcoming product
development opportunities, including the launch of our financial
information in Microsoft Office 2003 applications using XBRL
(Extensible Business Reporting Language)."
At March 31, 2004, cash totaled $1.4 million, current assets $3.6
million, total assets $16.5 million and shareholders' equity $13.2
million. In the first quarter of 2004, the Company made its final
payment on the promissory notes incurred due to its acquisition of
Financial Insight Systems, Inc.
KEY FINANCIAL METRICS
(in thousands, except per share amounts)
Three Months Ended
1Q'04 1Q'03
Seat-based Subscriptions $ 1,605 $ 1,423
Data Sales 1,162 1,192
Technical Services 206 1,020
Advertising and E-commerce 173 201
Total Revenues $ 3,146 $ 3,836
Net Loss $ (861) $ (1,116)
Interest (Income) Expense, net (2) 54
Loss from Operations (863) $ (1,062)
Amortization and Depreciation 596 661
EBITDA (267) (401)
Net loss per share $ (0.05) $ (0.07)
EBITDA per share $ (0.02) $ (0.02)
In addition to disclosing financial results prepared in accordance
with GAAP, the Company discloses information regarding EBITDA. EBITDA
is a non-GAAP financial measure defined as earnings before interest,
taxes, depreciation and amortization. The Securities and Exchange
Commission ("SEC") recently adopted new rules concerning the use of
non-GAAP financial measures. As required by the SEC, the Company
provides the above reconciliation to net loss, which is the most
directly comparable GAAP measure. The Company presents EBITDA as it is
a common alternative measure of performance that is used by management
as well as investors when analyzing the financial position and
operating performance of the Company. As EBITDA is a non-GAAP
financial measure, it should not be considered in isolation or as a
substitute for net loss or any other GAAP measure. Because all
companies do not calculate EBITDA in the same manner, the Company's
definition of EBITDA may not be consistent with that of other
companies.
First Quarter Conference Call Reminder
EDGAR Online will hold its quarterly conference call to review its
results for the first quarter ended March 31, 2004 today, Tuesday,
April 27th, 2004, at 5:00 p.m. Eastern Standard Time. Susan
Strausberg, President and CEO, and Greg D. Adams, CFO and COO, will
host the call. To participate, please call: Domestic 800-404-1354,
International 706-643-0825. Investors also have the option of calling
800-642-1687 (domestic), 706-645-9291 (International.), passcode
7020976 for the teleconference replay, which will be available for
approximately one week beginning at 7:00 p.m. Eastern Standard
tonight. The call will also be broadcast simultaneously over the
Internet at http://www.edgar-online.com/investor.
About EDGAR(R) Online(R), Inc.
EDGAR Online, Inc. (http://www.edgar-online.com) is a financial
information company specializing in making complex regulatory
reporting by public companies actionable and easy-to-use. The Company
makes financial information and a variety of analysis tools available
via online subscriptions and licensing agreements to professionals in
financial institutions, corporations and law firms.
"Forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995 may be included in this news release.
These statements relate to future events or our future financial
performance. These statements are only predictions and may differ
materially from actual future events or results. EDGAR Online, Inc.
disclaims any intention or obligation to revise any forward-looking
statements whether as a result of new information, future developments
or otherwise. Please refer to the documents filed by EDGAR Online,
Inc. with the Securities and Exchange Commission, which identify
important risk factors that could cause actual results to differ from
those contained in forward-looking statements, including, but not
limited to risks associated with our ability to (i) increase revenues,
(ii) obtain profitability, and (iii) obtain additional financing,
changes in general economic and business conditions (including in the
online business and financial information industry), actions of our
competitors, the extent to which we are able to develop new services
and markets for our services, risks in connection with acquisitions,
the time and expense involved in such development activities, the
level of demand and market acceptance of our services and changes in
our business strategies.
EDGAR(R) is a federally registered trademark of the U.S.
Securities and Exchange Commission. EDGAR Online is not affiliated
with or approved by the U.S. Securities and Exchange Commission.
EDGAR Online, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
(unaudited)
2004 2003
----------- ----------
Revenues:
Seat-based subscriptions $1,605 $1,423
Data sales 1,162 1,192
Technical services 206 1,020
Advertising and e-commerce 173 201
----------- ----------
Total revenues 3,146 3,836
Total cost of sales 485 548
----------- ----------
Gross profit 2,661 3,288
Sales and marketing 625 536
Product development 393 526
General and administrative 1,910 1,843
Restructuring and severance charges - 784
Depreciation and amortization 596 661
----------- ----------
Total operating expenses 3,524 4,350
Loss from operations (863) (1,062)
Interest and other income (expense),
net 2 (54)
----------- ----------
Net loss $ (861) $ (1,116)
=========== ==========
Weighted average shares outstanding -
basic and diluted 16,992 17,004
Net loss per share - basic and
diluted $ (0.05) $ (0.07)
EDGAR Online, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, December 31,
2004 2003
----------- ------------
Assets (unaudited)
Cash $1,359 $3,860
Accounts receivable, net 1,747 1,430
Other assets 473 439
----------- ------------
Total current assets 3,579 5,729
Property and equipment, net 1,377 1,477
Goodwill 2,189 2,189
Intangible assets, net 9,047 9,465
Other assets 284 285
----------- ------------
Total assets $16,476 $19,145
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $922 $1,061
Deferred revenues 2,318 2,040
Notes payable and accrued interest - 1,926
----------- ------------
Total current liabilities 3,240 5,027
Other long term payables 82 103
----------- ------------
Total liabilities 3,322 5,130
----------- ------------
Stockholders' equity:
Common stock 172 172
Treasury stock (332) (332)
Additional paid-in capital 58,319 58,319
Accumulated deficit (45,005) (44,144)
----------- ------------
Total stockholders' equity 13,154 14,015
Total liabilities and stockholders'
equity $16,476 $19,145
CONTACT: EDGAR(R) Online(R), Inc.
Greg Adams, 203-852-5666
gadams@edgar-online.com