Spurred largely by continuing results from lead generation services it expanded early last year, interactive marketing services provider CoolSavings Inc. posted revenues that rose 51% to $12.2 million from the year-ago quarter for the fourth quarter ended Dec. 31. The company saw more than 7 millions new consumer registrations across its lead generation network and a 7% increase in the number of revenue-producing actions taken by consumers across the network.
Fourth quarter net income of $1.5 million was the same as in Q4 of the pervious year. Operating costs rose to $10.6 million in the quarter from $6.5 million in the previous Q4, as the result of fees paid to partners in the lead generation network, increased member acquisition costs and increased costs related to other another service offering, Grocery Solutions.
For the year, CoolSavings reported revenues of $38 million, up from $32.4 million in 2003. Operating costs and expenses rose to $37.2 million from $31.3 million in 2003. Results for the year included a number of one-time charges. Net income for the year was $700,000, the same as for 2003. The company reported 14.5 million new consumer registrations for the year, but an 8% decline in the number of revenue-producing actions taken by consumers across the network.
CoolSavings president and CEO Matthew Moog says the company’s investment in services and offerings will support growth. “CoolSavings ended 2004 with very strong momentum due to considerable investments made during the year in new product development and in sales and marketing. These investments have built a solid foundation from which CoolSavings expects to see significant revenue growth and operating margin improvements,” Moog says.
The company’s lead generation network, introduced last year, increases lead generation opportunities beyond CoolSavings.com to distribute offers across a network of 30 partner sites including those of Meredith Publishing Group, Knight-Ridder Newspaper web sites, and others. The network boosts sponsors' e-mail, postal and telemarketing databases with a double opt-in process that consumers complete to receive further information or offers. CoolSavings generates revenue through the Lead Generation Network and pays partner fees in connection with the service.
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