Online jeweler and auctioneer Bidz Inc. is reporting a 46% increase in revenue for 2006 while net income rose by 104%. But net income in Q4 also was adversely affected by free shipping costs and some expenses related to its IPO.
Online jeweler and auctioneer Bidz Inc. is reporting a 46% increase in revenue for 2006, while net income rose by 104%.
For 2006, the company, No. 98 in the Internet Retailer Top 500 Guide, posted net income of $5.4 million on revenue of $132 million, compared with net income of $2.6 million on revenue of $90.3 million in 2005.
In Q4, Bidz had net income of $953,000 on sales of $37.5 million vs. net income of $1.8 million on revenue of $30.6 million in Q4 2005. Net income in the fourth quarter was adversely affected by lower gross margins from the promotion of free shipping and approximately $56,000 in expenses for rescission and public offering costs, Bidz says.
“We are very pleased with our 2006 results which demonstrate the success of our differentiated business model of providing a strong customer value proposition while delivering solid revenue growth and profitability,” says CEO David Zinberg. “The jewelry market remains strong, yet fragmented, and the number of new buyers and transactions continue to increase, which we believe will further drive our profitable growth in 2007 and beyond.”
During Q4, Bidz had approximately 70,000 new buyers and an average of over 3,700 orders per day compared to 68,000 new buyers and an average of 2,900 orders per day in the prior year’s quarter, the company says.
Bidz expects revenue for the first quarter of 2007 to be in the range of $43 million to $45 million, and for net income to be from $2.7 million to $3 million. For 2007, the company anticipates revenue to be in the range of $170 million to $180 million and to post net income of $10 million to $11 million.