Leading E-commerce Services Firm Reports 89% Revenue Growth, Earnings Up 127%
SAN MATEO, Calif. April 3, 2007 - Vendio™, a leading provider of online sales management and lead generation services for merchants, today reported another year of record financial results, with revenues, GAAP net income, and EBITDA all advancing significantly over last year’s record-setting numbers. Vendio’s net revenue increased by more than 89%, driven by a dramatic rise in customer subscriptions for its core online sales management solutions and increased consumer adoption of its lead generation business, including the Dealio comparison shopping Toolbar and related Web site. The company has achieved 21 consecutive quarters of positive EBITDA since 2002.
"2006 was the brightest in Vendio’s eight-year history,” said Rodrigo Sales, CEO and co-Founder of Vendio. “The acquisition of Andale helped us to grow of our customer base substantially while combining resources and expertise in several key areas. Our continued investment in Dealio resulted in significant adoption of the Dealio Toolbar and a sizeable increase in visitor traffic to Dealio.com. We are equally excited by the early success of Widgipedia.com, and we expect this new area of our business to flourish as awareness and demand for widgets accelerates in 2007.”
Vendio made several cash investments in 2006 that it expects will pay off handsomely in future years. These include:
• Acquiring the assets of longtime competitor, Andale, to further solidify its leadership position in the online sales management industry.
• Scaling up the investment in Dealio by adding new functionality to the Dealio Toolbar and launching new features to Dealio.com, including a consumer-driven deal news community.
• Devoting internal resources to develop and launch Widgipedia.com.
• Expanding development capacity and overall headcount.
Despite these investments, Vendio increased its cash reserves during the year. The company anticipates another banner year in 2007 and is investing aggressively in several key areas:
• Dealio – Further expanding the functionality of the Dealio Toolbar and a major build-out of Dealio.com. Vendio’s comparison shopping service will generate additional merchant leads by providing an even more compelling product search experience for its growing consumer base. Launched in late 2005, the Dealio Toolbar has already been installed on more than 2.5 million consumers’ PCs.
• Vendio Sales Management – Consolidating areas of overlap between the Andale and Vendio platforms for greater operating efficiencies and cross-selling unique products across the combined customer base to grow service usage and revenue. Vendio will also expand its hosted e-commerce store offering to accelerate the use of multiple online sales channels.
• Widgipedia – Expanding the community of developers and widget consumers through enhanced functionality and partnerships with other key widget-enabling organizations.
• Additional Acquisitions – In addition to its internal development efforts, Vendio intends to broaden its core solutions platform by acquiring and integrating businesses offering complementary and synergistic products and services.
Vendio enables merchants to reach consumers, manage transactions, and profitably grow their businesses. Dealio, Vendio`s comparison shopping toolbar and consumer-driven deal news community, empowers consumers to find the best deals quickly and easily on virtually any product or service. Vendio`s award-winning sales management services include Sales Manager Inventory Edition (named by eBay as the most innovative application for the eBay platform in 2005), Vendio Gallery, Vendio Image Hosting, and several other applications that save merchants time and increase their sales.
Vendio was founded in January 1999 and is the independent leader in online sales management. Each month, tens of thousands of small businesses utilize Vendio`s sales management and merchandising services to sell over $125MM of products on both their own branded stores as well as the Web`s leading marketplaces. In November of 2006, Vendio acquired the assets of longtime competitor, Andale, further solidifying its leadership position in online sales management. The company is privately held, recently celebrated its fifth year of profitable growth, and is headquartered in Silicon Valley with offices in India and Romania.
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