===========================================================================
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
-----------------------------------
FEBRUARY 16, 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
incorporation or Number)
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)
===========================================================================
<PAGE>
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 and the
year ended December 31, 1998.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(c) Exhibits
99.1 Financial information for theglobe.com, inc., for the quarter and
the year ended December 31, 1998.
<PAGE>
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: February 19, 1999.
theglobe.com, inc.
By: /s/ Francis T. Joyce
----------------------------
Name: Francis T. Joyce
Title: Vice President and
Chief Financial Officer
EXHIBIT 99.1
[GRAPHIC OMITTED]
THEGLOBE.COM ANNOUNCES FOURTH QUARTER RESULTS
9.3 MILLION USERS JOIN LEADING ONLINE COMMUNITY
STRONG ADVERTISING FROM MAJOR CONSUMER BRANDS
(February 16, 1999, New York, NY) theglobe.com (Nasdaq: TGLO), the leading
online community which fully integrates professional content, commerce and
community, today reported results for the fourth quarter ended December 31,
1998.
Revenues for the fourth quarter of 1998 were $2.8 million, representing a
78% increase over third quarter 1998 and a 682% increase over fourth
quarter 1997. Pro forma net loss for the quarter was $4.5 million or $0.53
per share versus $4.3 million or $0.64 per share for the third quarter 1998
and $1.0 million or $0.16 for the fourth quarter 1997. Gross profit for the
fourth quarter was $1.7 million versus $946,000 in the third quarter 1998
and $170,000 in the fourth quarter 1997. Gross margins were 60%, 61% and
48% respectively for the periods.
In December 1998, the number of users at theglobe.com grew to 9.3 million,
up from 6.3 million at the end of September 1998. The number of members
grew to nearly 2.3 million in December 1998 from 2.0 million in September
1998.
During the fourth quarter of 1998, the number of advertisers at
theglobe.com grew 32% from 111 in the third quarter to 147 in the fourth
quarter versus 14 advertisers in the fourth quarter 1997. New advertisers
in the quarter included American Express, AT&T, BankAmerica, CNN/SI,
Hewlett Packard, Hilton, Intuit, Kodak, Kellogg's Brands, Office Max and
Philips Electronics.
In 1998, 68.9% of all advertisers were consumer brands including, Procter &
Gamble, Nabisco, Lego, Schering-Plough, Cathay Pacific, Lee Jeans, Levis
and Carter Wallace.
For all of 1998, revenues increased by 615% to $5.5 million versus $770,000
for 1997. Pro forma net loss for 1998 was $14.7 million or $2.06 per share,
as compared to $3.6 million or $0.54 per share for 1997. Gross profit for
1998 rose to $3.3 million versus $347,000 for 1997. Gross margins in 1998
rose to 59% versus 45% in 1997.
"User growth has increased substantially as theglobe.com continues to
develop the vertical themes within our community to provide greater depth
and breadth to the online community experience", stated Stephan Paternot,
Co-CEO and co-President, theglobe.com. "Major household brands are
recognizing our site as clearly offering unique advertising opportunities
to target specific demographics, in ways that go well beyond what other
sites and traditional media offer."
"theglobe.com has delivered another quarter of strong revenue growth due to
an increase in both the number of advertisers as well as the average
commitment per advertiser," explained Frank Joyce, Chief Financial Officer,
theglobe.com.
Earlier this month, theglobe.com announced the purchase of Azazz, a leading
interactive department store recently rated by BizRate.com as one of the
highest rated customer certified department stores on the Web. The Company
extended its e-commerce strategy during the quarter by launching
globeDirect, a direct marketing service which notifies members by email of
products that are tailored to their interests.
Todd Krizelman,co-CEO and co-President, theglobe.com, added "While our
rapid revenue growth has mainly been derived from advertising sales to
date, our recent acquisition of Azazz.com demonstrates our continuing
aggressive e-commerce strategy. The acquisition will enable theglobe.com to
offer a broad array of products, attractive prices and premium customer
service to our millions of monthly users."
ABOUT THEGLOBE.COM
theglobe.com is one of the world's leading online communities with over 9.3
million users in the United States and abroad. theglobe.com is setting the
standard for online communities by providing members with a wealth of
services and content. The intuitive site is designed to foster a user's
creative and interactive experience. Content providers for 10 themes of
interest (Art, Business, Entertainment, Life, Metro, News, Romance, Sports,
Technology & Travel) include Reuters, E! Online, Thomson Investors Network,
Fox Sports, & CNet.
Member content is promoted in every area of the site, integrated around the
abundance of data and news available at theglobe.com. By satisfying its
users' personal and practical needs, theglobe.com seeks to become their
online home. The company's primary revenue source is the sale of
advertising, with additional revenues generated through e-commerce
arrangements and the sale of membership subscriptions for enhanced
services.
globeDirect, a direct marketing and retail service is aimed at supplying
its members with point and click buying power.
theglobe.com and globeDirect are service marks of theglobe.com, Inc.
theglobe.com
SUMMARY FINANCIAL DATA
Pro forma results excluding non-recurring,
non-cash charge
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
---------------------- ----------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
Dollars in thousands,
except per share data
Revenues $ 2,775 $ 355 $ 5,510 $ 770
Gross profit 1,654 170 3,271 347
Pro forma operating
loss before
non-recurring,
non-cash charge (4,672) (1,226) (15,488) (3,883)
Pro forma net loss
before non-recurring,
non-cash charge (1) $ (4,532) $ (1,034) $ (14,675) $ (3,584)
========== ========== ========== ==========
Pro forma net loss
per share - basic &
diluted before
non-recurring,
non-cash charge $ (0.53) $ (0.16) $ (2.06) $ (0.54)
========== ========== ========== ==========
Pro forma weighted
average number of
common shares
outstanding (2) 8,580,252 6,628,006 7,135,042 6,620,508
========== ========== ========== ==========
- ---------------
(1) Pro forma net loss excludes a non-recurring, non-cash charge of $1.4
million in connection with the transfer of outstanding warrants to
certain officers of the Company during the third quarter 1998.
(2) Pro forma weighted average shares outstanding for all periods
presented assumes that the 5,473,735 shares of Common Stock issued
upon the automatic conversion of the Company's Preferred Stock in
connection with the initial public offering had been outstanding
during each period.
theglobe.com
SUMMARY FINANCIAL DATA
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
---------------------- ----------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
Dollars in thousands,
except per share data
Revenues $ 2,775 $ 355 $ 5,510 $ 770
Gross profit 1,654 170 3,271 347
Operating loss before
non-recurring, non-
cash charge (4,672) (1,226) (15,488) (3,883)
Non-recurring, non-cash
charge -- -- (1,370) --
========== ========== ========== ==========
Operating loss (4,672) (1,226) (16,858) (3,883)
Net Loss $ (4,532) $ (1,034) $ (16,046) $ (3,584)
========== ========== ========== ==========
Net Loss per share basic
and diluted $ (0.76) $ (0.90) $ (6.74) $ (3.13)
========== ========== ========== ==========
Weighted average shares
outstanding 5,962,379 1,154,271 2,381,140 1,146,773
========== ========== ========== ==========
CONTACTS: Esther Loewy, theglobe.com, 212-886-0803 or [email protected]
Corey Cutler, Dewe Rogerson Inc., 212-419-4229 or [email protected]
- ---------------------------------------------------------------------------
FORWARD-LOOKING STATEMENTS: This news release contains forward-looking
statements, which are based upon 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 company. 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 change and platform
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 the company's registration statement on Form
S1. The company undertakes 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.
- ---------------------------------------------------------------------------
