August 18, 2000
Bingo.com Reports Results for Second Quarter; Company Doubles Registered User Base, Unique Visitors Per Day
BINGO.COM REPORTS RESULTS FOR SECOND QUARTER; -COMPANY DOUBLES REGISTERED USER BASE, UNIQUE USERS PER DAY
MARINA DEL REY, Calif., Aug. 18 /PRNewswire/ — Bingo.com, Inc. (OTC Bulletin Board: BIGR), a leading online entertainment company, today announced its results for the quarter ended June 30, 2000.
The company contracted approximately $250,000 in business during the quarter, which includes co-branding agreements and other business that will stretch into future months. This will be booked as revenue over the term of the various agreements and as work is performed. For the quarter ended June 30, 2000, the company reported $57,588 in revenues compared to no revenues for the quarter ended June 30, 1999. Revenues resulted primarily from advertising and the sale of advertising banners on the company’s Web site. The company recorded $28,600 in barter revenue with a corresponding cost of revenue of $28,600 included in marketing expenses.
At June 30, 2000, cash and cash equivalents were $1,747,277 versus $4,594,304 at June 30, 1999. Working capital position at June 30, 2000 was $1,101,101 compared to $4,880,199 at June 30, 1999. Marketing, advertising, software and Web site development costs totaled $208,698 for the quarter ended June 30, 2000, compared to $217,704 for the quarter ended June 30, 1999. As of June 30, 2000 the company had 10 full-time employees and four regular consultants located in its principal executive offices in California. Audience growth and usages during the quarter remained strong. The company had 211,092 registered users as of June 30, 2000, compared to 106,779 at March 31, 2000, representing a growth rate of 97% for the second quarter. The company experienced a 32% increase in its quarterly growth rate over the first quarter of 2000. During the second quarter of 2000, the company attracted in excess of 27,000 unique visitors per day to its Web site, compared to 15,000 in the first quarter of 2000. During the second quarter of 2000, the average visitor session length grew from an average of approximately 50 minutes to over 60 minutes.
During the second quarter of 2000, the company was independently ranked among the top 10 e-businesses by Bain & Company, a leading global strategy consulting firm. The Bain survey evaluated on-line firms on the basis of third-party interviews and public information, and utilized a ranking criteria that considered strategic innovation, website impact, plan execution, funding and fame. The company achieved top ranks for innovation, impact and execution.
In keeping with its strategy to build value through its registered user data base, the company filed a provisional patent application with the U.S. Patent and Trademark Office during the second quarter of 2000, entitled “Method and Apparatus for Directing Interleaved Messages in a Network Based Interactive Application”, a software application program which the company believes will enhance the Web site’s visitors’ experience and allow it to better facilitate the delivery of its on-line advertising and merchandising opportunities. The application will allow the users to browse products and play games or participate in other activities simultaneously. The company anticipates that the application will be integrated into its on-line playing environment in the near future. The company is constructing this feature as a modular add-on to its existing software applications and it may potentially be able to generate related revenues through the future licensing of the software.