<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
___________________________________
MAY 3, 1999
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
THEGLOBE.COM, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 0-25053 14-1781422
(STATE OR OTHER (COMMISSION FILE NUMBER) (I.R.S. EMPLOYER
JURISDICTION OF IDENTIFICATION NUMBER)
INCORPORATION OR
ORGANIZATION)
31 WEST 21ST STREET
NEW YORK, NEW YORK 10010
(ADDRESS OF PRINCIPAL
EXECUTIVE OFFICES)
(212) 886-0800
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
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ITEM 5. OTHER EVENTS
ATTACHED HERETO AS EXHIBIT 99.1 AND INCORPORATED BY REFERENCE HEREIN IS
FINANCIAL INFORMATION FOR THEGLOBE.COM, INC., FOR THE QUARTER ENDED MARCH 31,
1999.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(c) Exhibits
99.1 Financial information for theglobe.com, inc., for the quarter ended
March 31, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on behalf of the undersigned
hereunto duly authorized.
Dated: May 3, 1999.
theglobe.com, inc.
By: /s/ Francis T. Joyce
------------------------------
Name: Francis T. Joyce
Title: Vice President and Chief
Financial Officer
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EXHIBIT 99.1
theglobe.com [LOGO]
theglobe.com ANNOUNCES FINANCIAL RESULTS for FIRST QUARTER 1999
Leading Online Network Demonstrates Strong E-commerce and M&A Strategy; 83% of
Advertisers Consumer Brands
NEW YORK, N.Y. May 3, 1999- theglobe.com (Nasdaq: TGLO) one of the world's
leading online networks, today reported results from the first quarter of
1999.
Revenues for the quarter ended March 31, 1999 rose to $3.2 million, an increase
of 711% from $0.4 million a year earlier.
Pro forma net loss for the quarter, which excludes amortization of purchased
intangibles was $4.9 million or $0.47 per share. This compares to a loss of $2.0
million or $0.76 a share for the first quarter of 1998 and a loss of $4.5
million or $0.76 a share for the fourth quarter of 1998. Weighted average
shares outstanding for the quarters ending March 31, 1999, March 31,1998 and
December 31, 1998 were 10,554,834, 2,604,267, and 5,962,379 respectively.
Net loss for the current quarter, including $1.4 million in amortization of
purchased intangibles, was $6.3 million or $0.59 per share, compared with $2.0
million or $0.76 per share for the quarter ended March 31, 1998 and $4.5 million
or $0.76 a share for the quarter ended December 31, 1998. Days sales outstanding
for theglobe.com declined to 68 days at March 31, 1999, down from 73 days at
December 31, 1998; an improvement of 5 days.
"In 1999 we have begun our foray into e-commerce and continued our global
expansion of users," stated Todd Krizelman, co-CEO, theglobe.com. "We also began
an M&A strategy that has allowed us to acquire both an online department store,
now called shop.theglobe.com, and one of the leading game properties, the
Attitude Network, which includes Happy Puppy, Games Domain and Kids Domain.
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Users grew to approximately 10.2* million in March 1999. This number does not
include the Attitude Network audience.
Recent Highlights
Acquistions
-- In February, theglobe.com acquired Azazz!, an online department store now
integrated into our site as shop.theglobe.com. According to the BizRate report,
Azazz! scored one of the highest grades among consumers in 1998.
- -- In April, the Company, through its acquisition of Attitude Network, acquired
two of the leading American and European game sites, Happy Puppy and Games
Domain.
83% Consumer Brand Advertisers
- -- theglobe.com also announced that consumer brands represented approximately
83% of the number of advertisers in the first quarter. New advertisers included:
Pepsi, Toyota, British Airways, Accutane, MediaOne, JetFax (eFax), Progressive
Insurance, Monster.com, Discover Card, Egghead, Forbes, Nabisco and Scudder
Funds.
Frank Joyce, CFO of theglobe.com said, "Strong revenue growth along with a
continued focus on the expense side of the business has resulted in another
strong quarter for theglobe.com. As in the last quarter, the average commitment
per advertiser again increased 20% from the prior quarter."
StrategicPartnerships
In March, theglobe.com developed strategic partnerships to enhance both the
commerce and content of the site including:
- - Boxlot Auctions agreed to pay $2.25 million over two years to become the co-
branded auction partner for globeAuctions.
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- - Fox Sports Online, a premier sports site on the Internet, has teamed up with
theglobe.com, to deliver daily sports news to the site's popular sports
theme.
- - MarketWatch.com, one of the top web sites for investors as rated by Barron's,
agreed to deliver personal finance analysis and editorial columns to
theglobe.com users.
- - Hachette New Media agreed to provide editorial from Car & Driver, Road &
Track and Motor Trend for a new Auto Theme.
Added Stephan Paternot, co-CEO of theglobe.com, "theglobe.com has developed into
a media network which is attracting new forms of revenue as our e-commerce and
advertising partners realize the value of doing business with theglobe.com. We
intend to continue to build our international presence, in users and services,
to enable us to compete in the global markets which are growing at an
accelerated pace."
Stock Split
Last month, the Board of Directors approved a two for one stock split of its
common shares. The stock will split and be distributed to shareholders on May
14, 1999, in the nature of a stock dividend for all shareholders of record on
May 3, 1999.
"State of the art" facilities
The Company completed the transition to its new Staten Island Server Facility
(SISF) during the first quarter. SISF is a state of the art data processing
facility located on the campus of the New York Teleport in Staten Island, New
York. The relocation to SISF has allowed the Company to expand its capacity
significantly. The Company has increased Internet connectivity over 180% from
90Mb to 255Mb since bringing SISF online, and has been able to make similar
upgrades to database, web server, and file server capacity. The state of the
art security, environmental controls, and information infrastructure of SISF
should allow the Company to continue to increase capacity while providing higher
quality of service to users.
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theglobe.com network is one of the world's leading online destinations with
approximately 10.2 million users* in the United States and abroad. The intuitive
design has been constructed to foster a user's creative and interactive
experience, and provides members with a wide selection of services and content.
As their online home, theglobe.com offers users a full service department store,
person-to-person auctions, popular games, the latest news, stock quotes, free e-
mail, chat events, discussion groups, and the ability to read or create
personalized member pages.
Forward-Looking Statements: This news release contains forward-looking
statements, which are based on current expectations and involve a number of
risks and uncertainties. There are a number of important factors that could
cause actual results to differ materially from those expressed in any forward-
looking statements made by the theglobe.com. These factors include, but are not
limited to, the limited operating history and early development stage of the
company; its lack of profitability and anticipation of continued losses;
unpredictability and potential fluctuations in future revenues; dependence on
new product introductions achieving significant market acceptance and the
uncertainties of consumer preferences; the acceptance of the Web as an
advertising medium; dependence on member-generated content; risks of rapid
technological changes; intense competition; and the general risks associated
with Internet-based businesses. Investors are also directed to consider other
risks and uncertainties discussed in documents filed by the company with the
Securities and Exchange Commission including, without limitation, under "Risk
Factors" set forth in theglobe.com's registration statement on Form S-1. We
undertake no obligation to publicly release the result of any revisions to these
forward-looking statements, which may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
theglobe.com and theglobe.com logo are service marks of theglobe.com, Inc.
* Source: DoubleClick, as audited by ABC Interactive (March 1999).
Does not include Attitude Network users.
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theglobe.com
Unaudited Pro Forma Consolidated
Statements of Operations
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------------------------
1999 1998
- ---------------------------------------------------------------------------------------------------------
Dollars in thousands,
except per share data
------------------------------------------
<S> <C> <C>
Revenues $3,192 $394
Cost of revenues 1,323 213
----------------------------------------
Gross profit 1,869 181
Operating expenses:
Sales and marketing 2,060 1,411
Product development 2,114 85
General and administrative 2,754 1,098
----------------------------------------
Total operating expenses 6,928 2,594
Operating loss (5,059) (2,413)
Other income 195 456
----------------------------------------
Loss before provision for income taxes (4,864) (1,957)
Provision for income taxes 46 16
----------------------------------------
Pro forma net loss $(4,910) $(1,973)
========================================
Pro forma net loss per share basic and diluted (1)
(0.47) (0.76)
========================================
Weighted average shares outstanding (1) 10,544,834 2,604,267
========================================
</TABLE>
Note: The above pro forma consolidated statement of operations for the three
months ended March 31, 1999 excludes $1,360 of amortization of purchased
intangibles relating to the acquisition of factorymall.com
(1) Weighted average shares outstanding and pro forma net loss per share do not
give effect to the stock split that will be distributed to shareholders on May
14, 1999.
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theglobe.com, inc.
Unaudited Consolidated Statements of Operations
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------------------------
1999 1998
- ---------------------------------------------------------------------------------------------------------
Dollars in thousands,
except per share data
----------------------------------------
<S> <C> <C>
Revenues $3,192 $394
Cost of revenues 1,323 213
----------------------------------------
Gross profit 1,869 181
Operating expenses:
Sales and marketing 2,060 1,411
Product development 2,114 85
General and administrative 2,754 1,098
Amortization of purchased intangibles 1,360 -
----------------------------------------
Total operating expenses 8,288 2,594
Operating loss (6,419) (2,413)
Other income 195 456
----------------------------------------
Loss before provision for income taxes (6,224) (1,957)
Provision for income taxes 46 16
----------------------------------------
Net loss $(6,270) $(1,973)
========================================
Net loss per share basic and diluted (1) (0.59) (0.76)
========================================
Weighted average shares outstanding (1) 10,544,834 2,604,267
========================================
</TABLE>
(1) Weighted average shares outstanding and net loss per share do not give
effect to the stock split that will be distributed to stockholders on May 14,
1999.
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