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EDGAR® Online® Reports 2004 ResultsFourth Quarter Subscription Revenue Increases 18%SOUTH NORWALK, Conn. -- February 1, 2005 — EDGAR® Online®, Inc. (NASDAQ: EDGR), a leading provider of value-added business and financial information on global companies to financial, corporate and advisory professionals, today reported fourth quarter 2004 subscription growth of 18% over the same period last year and full year 2004 subscription growth of 16% over 2003. Since inception, the Company's subscription revenues, which consist of billings for EDGAR Online Pro and EDGAR Online Access, have grown incrementally each quarter. EDGAR Online reported total revenue of $3.3 million for the quarter ended December 31, 2004 compared to $3.2 million in the same quarter last year. The Company had total revenue of $12.9 million for the year ended December 31, 2004 compared to $14.3 million in 2003. Strong growth in the Company's core subscription business was offset by lower advertising sales and a $2.0 million anticipated decline in the Company's technical services revenues. The Company's deferred revenue at December 31, 2004 was $2.6 million, a 27% increase over 2003. This represents billings that will be recognized as revenue in future quarters. Susan Strausberg, EDGAR Online's president and CEO, said, "We are delighted that EDGAR Online will now show overall revenue growth on a quarter-over-quarter and sequential basis going forward. This represents a milestone in our history. We will now focus the majority of our energy on high-margin subscriptions that are recurring and highly predictable. The Company is also excited that the EDGAR Online I-Metrics® Excel Add-In, part of our new XBRL suite of products, is scheduled to launch in April of this year. It will enable users of Microsoft® Excel to access public company financial data without ever leaving Excel, saving our clients time and improving accuracy, all at a significantly reduced cost compared to other analytical products." Gross margins remained relatively consistent for full year 2004 at 85% compared to 86% for 2003. EDGAR Online expects gross margins to remain between 85% and 87% as the Company continues to expand its sales and marketing efforts that drive acquisition and retention. Operating loss was ($820,000), or ($0.04) per share, for the fourth quarter of 2004, compared to an operating loss of ($525,000), or ($0.03) per share, for the same quarter last year. Operating loss for the full year was ($3.2 million), or ($0.16) per share, compared to operating loss of ($2.0 million), or ($0.12) per share, last year. The full year 2004 increase in operating loss was primarily due to the $2.0 million decrease in technical services revenue and increased sales and marketing spending, offset by an increase in subscription revenue. The fourth quarter increase in operating loss is primarily due to an increase in development and sales and marketing expenses associated with the new XBRL (eXtensible Business Reporting Language) product initiatives. Net income for the fourth quarter, including a $1.2 million benefit from the settlement of a lawsuit, was $397,000 or $0.02 per share, compared to a net loss of ($555,000), or ($0.03) per share in the prior year. Net loss for 2004 was ($2.0 million), or ($0.10) per share compared to a net loss of ($2.2 million), or ($0.13) per share, in 2003. At December 31, 2004, cash totaled $4.7 million compared to $3.9 million at December 31, 2003. During the year, the Company received net proceeds of $4.2 million related to its completed secondary offering and made a final payment of $1.9 million in promissory notes. Cash used in operations was $1.1 million. The Company has no debt other than normal operating payables and accrued expenses.
KEY FINANCIAL METRICS
Quarter Ended Year Ended
4Q'04 4Q'03 2004 2003
------ ------ ------- -------
Seat-based Subscriptions $1,824 $1,543 $ 6,919 $ 5,953
Data Sales 1,173 1,171 4,575 4,833
Technical Services 206 347 823 2,805
Advertising and E-commerce 62 127 568 728
------ ------ ------- -------
Total Revenues $3,265 $3,188 $12,885 $14,319
Net Income/(Loss) $ 397 $ (555) $(1,966) $(2,167)
Other (Income)/Expense, net (1,217) 30 (1,240) 134
------ ------ ------- -------
Operating Loss $ (820) $ (525) $(3,206) $(2,033)
Amortization and
Depreciation 482 596 2,226 2,503
------ ------ ------- -------
EBITDA $ (338) $ 71 $ (980) $ 470
Net Income/(Loss) per share $ 0.02 $(0.03) $(0.10) $ (0.13)
EBITDA per share $(0.01) $ 0.00 $(0.05) $ 0.03
In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding EBITDA. EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation and amortization. The Securities and Exchange Commission ("SEC") has adopted new rules concerning the use of non-GAAP financial measures. As required by the SEC, the Company provides the above reconciliation to net income (loss), which is the most directly comparable GAAP measure. The Company presents EBITDA as it is a common alternative measure of performance that is used by management as well as investors when analyzing the financial position and operating performance of the Company by excluding certain non-cash expenses that are not indicative of our core operating results. Further, this non-GAAP financial measure is one of the primary indicators management uses for planning and forecasting future periods. As EBITDA is a non-GAAP financial measure, it should not be considered in isolation or as a substitute for net loss or any other GAAP measure. Because all companies do not calculate EBITDA in the same manner, the Company's definition of EBITDA may not be consistent with that of other companies.
Fourth Quarter Conference Call Reminder
About EDGAR® Online®, Inc.
FINANCIAL TABLES FOLLOW EDGAR Online, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31 December 31
(unaudited)
2004 2003 2004 2003
------- ------- -------- --------
Revenues:
Seat-based subscriptions $1,824 $1,543 $6,919 $5,953
Data sales 1,173 1,171 4,575 4,833
Technical services 206 347 823 2,805
Advertising and e-commerce 62 127 568 728
------- ------- -------- --------
Total revenues 3,265 3,188 12,885 14,319
Total cost of sales 479 418 1,898 1,979
------- ------- -------- --------
Gross profit 2,786 2,770 10,987 12,340
Sales and marketing 726 540 2,602 2,165
Product development 465 383 1,600 1,699
General and administrative 1,933 1,776 7,765 7,222
Restructuring and
severance charges - - - 784
Amortization and
depreciation 482 596 2,226 2,503
------- ------- -------- --------
Total operating expenses 3,606 3,295 14,193 14,373
Operating loss (820) (525) (3,206) (2,033)
Other income/(expense), net 1,217 (30) 1,240 (134)
------- ------- -------- --------
Net income/ (loss) $397 $(555) $(1,966) $(2,167)
======= ======= ======== ========
Weighted average shares
outstanding - basic 22,434 17,007 20,254 16,976
Weighted average shares
outstanding - diluted 22,780 17,007 20,254 16,976
Net income/ (loss) per share -
basic and diluted $0.02 $(0.03) $(0.10) $(0.13)
EDGAR Online, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2004 2003
------------ ------------
Assets
Cash $4,678 $3,860
Accounts receivable, net 2,095 1,430
Other assets 329 439
------------ ------------
Total current assets 7,102 5,729
Property and equipment, net 1,138 1,477
Goodwill 2,189 2,189
Intangible assets, net 7,936 9,465
Other assets 441 285
------------ ------------
Total assets $18,806 $19,145
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $1,612 $1,061
Deferred revenues 2,581 2,040
Notes payable and accrued interest - 1,926
------------ ------------
Total current liabilities 4,193 5,027
Other long term payables - 103
------------ ------------
Total liabilities 4,193 5,130
Stockholders' equity:
Common stock 226 172
Treasury stock (1,881) (332)
Additional paid-in capital 62,378 58,319
Accumulated deficit (46,110) (44,144)
------------ ------------
Total stockholders' equity 14,613 14,015
Total liabilities and stockholders'
equity $18,806 $19,145
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