CoolSavings’s revenue grows 7.4% in first 9 months
Net revenues for the first nine months of 2004 at Chicago-based CoolSavings Inc., an interactive marketing services company and producer of online coupons, reached $26.1 million, up 7.4% from $24.3 million in the first nine months of 2003, the company reported today. Net loss was $2.4 million vs. a net loss of $2.3 million a year ago.
Net revenues in the third quarter were $9 million, up 11% from $8 million in Q3 2003, the company reports. Q3 net loss was $200,000, compared to net income of $200,000 for the same period of 2003.
Gross profit in the third quarter of 2004 was $7.4 million, or 83% of net revenues, compared to $7.3 million, or 90% of net revenues in the third quarter of the prior year.
The company says the growth in revenue was primarily due to the success of the Lead Generation Network, which it launched in March, while the decrease in gross profit was primarily due to the increase in partner fee expenses related to the Lead Generation Network.
The Lead Generation Network enables advertisers to collect consumer leads across top web sites, including Better Homes and Gardens, weather.com, About.com, Publisher`s Clearing House and coolsavings.com. CoolSavings says it expects the network to generate more than 18 million qualified leads for retail, CPG and direct marketing customers in 2004, with approximately 30% growth in 2005.
CoolSavings reports that in the third quarter, it had a 95% retention rate among its top 100 revenue-producing clients from 2003. CoolSavings provides marketing services for more than 700 clients on an annual basis, including JCPenney, Hormel Foods, Land O`Lakes, Marshalls/T.J. Maxx, Pepsi Co., Old Navy.com, Target and 3M.
Back...
