Find What? Coolcat's Internet Play
03/28/2003 12:00 am EST
“The latest addition to our low price momentum buy list is an Internet content play called FindWhat.com (FWHT NASDAQ). The company operates online marketplaces that connect the consumers and businesses that are most likely to purchase specific goods and services with the advertisers that provide those goods and services. Online advertisers determine the per-click fee they will pay for their advertisements, which FindWhat.com and its private-label partners such as Terra Lycos' Lycos.com and HotBot distribute to millions of Internet users. The FindWhat.com network includes hundreds of distribution partners, such as CNET's Search.com, Excite, Webcrawler, NBCi, MetaCrawler, Dogpile, and Go2Net.
”Advertisers bid against each other for particular keywords or phrases through an open, automated, bid-for-position system, where the advertisement of the Web site with the highest bid appears first, with all other advertisers listed in descending bid order. This cost-effective, pay-for-performance model allows Web advertisers to pay only for those prospects who click through to their sites and increases their potential for exposure through the millions of advertisements distributed throughout the network each day.
“Revenue for the fourth quarter increased 22% over the third quarter, was 68% above the same quarter in the prior year and was approximately $1.2 million ahead of expectations. The company has increased revenue sequentially for 13 consecutive quarters. FindWhat.com generated pre-tax diluted earnings per share of $0.19 in the quarter, $0.03 ahead of expectations. The earnings were up 26% from the previous quarter and 127% from the same quarter a year earlier. The company has increased pre-tax diluted EPS sequentially for seven consecutive quarters. Finally, we note that the company has cash and short-term investments as of December 31, 2002 exceeding $21 million, with no long-term debt.”