Filed by MapQuest.com, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: MapQuest.com, Inc.
Commission File No. 000-25877
FOR IMMEDIATE RELEASE
Contact: James Thomas Jenifer Kirtland
Chief Financial Officer Vice President, Investor Relations
MapQuest.com Wilson McHenry Company
(717) 285-8525 (510) 723-6200
[email protected] [email protected]
MAPQUEST.COM, INC. CONTINUES RECORD GROWTH
FOR THE FOURTH QUARTER 1999
Revenues surpass $11 million
Internet-based revenue up 206%, driven by growth in B to B segment
New York, NY; March 14, 2000 -- MapQuest.com, Inc. (Nasdaq: MQST), a leader in
wireless and online destination information, today announced its financial
results for the fourth quarter and fiscal year ended December 31, 1999.
Internet-related revenue from the consumer and business-to-business segments
grew 206% to a record $6.8 million in the fourth quarter of 1999 from $2.2
million in the fourth quarter of 1998. Total revenue for the quarter was a
record $11.1 million, 61% above $6.9 million in revenue in the comparable
quarter of 1998. The net loss for the recent fourth quarter was $7.9 million
compared to a net loss of $1.1 million for the same quarter in 1998. The pro
forma basic and diluted net loss per share was $(0.23) for the recent quarter,
compared to $(0.04) per share in the fourth quarter of 1998.
Included in the fourth quarter results were two non-recurring charges, totaling
$1.7 million. The charges relate to transaction costs associated with potential
acquisitions that were not consummated as well as costs associated with certain
third-party patented technology used by MapQuest.com.
"We are very pleased with the continued strong growth of our Internet business,
as we further expand our mapping solutions to businesses, consumers and wireless
applications," said Michael Mulligan, Chairman and Chief Executive Officer of
MapQuest.com. "During the fourth quarter, we added 234 new customers in the B2B
segment of our business. On the consumer side, we continued to grow traffic to
our site. We also began to focus additional resources on the growing wireless
category. To continue our momentum and drive revenue growth, we made significant
investments during the quarter in our wireless business, our Internet
operational capability and marketing.
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"In December, we announced our proposed acquisition by America Online, Inc., the
world's leading interactive services company. We are proceeding towards
completing that transaction on our expected timetable. We believe our
acquisition by AOL will enable MapQuest.com to expand its destination solutions
across a much wider audience and enable a broad base of advertisers and
businesses to better target potential customers."
For the full year ended December 31, 1999, Internet-related revenues increased
149% to a record $19.7 million, compared with $7.9 million in l998. Total
revenues for 1999 were $34.5 million, 40% above the $24.7 million in revenue in
1998. The company reported a net loss of $18.9 million for 1999, compared with a
net loss of $3.8 million in the prior year. The pro forma basic and diluted net
loss per share in 1999 was $(0.58), versus $(0.11) for 1998.
Internet Business-to-Business Segment Growth
- --------------------------------------------
The business-to-business segment continues to grow. During the fourth quarter,
MapQuest.com added 234 new customers, bringing the total customer base to over
1,000.
Since the new year, MapQuest.com has added several significant retail accounts.
In January, the company signed an agreement with Wal-Mart, the largest retailer
in the world, to provide maps and directions for the Wal-Mart website. In
February, MapQuest.com also reached agreements with five additional retail
chains, including Burger King Corporation, Chuck E. Cheese, Benihana, GNC and
Learning Express, to incorporate its mapping solutions on their websites. These
retailers join over 180 leading retailers in the U.S. that use MapQuest.com
mapping solutions to help drive customers to their stores.
MapQuest.com also recently reached an agreement with Ford Motor Company to
provide customized mapping solutions to Ford customers on its OwnerConnection
website. Other recent new customers include iVillage.com, salesforce.com and
MyTurn.com, leading vertical portals.
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Internet Consumer Segment Expansion
- -----------------------------------
During the fourth quarter, MapQuest.com increased its user base, ending the year
with 3.5 million unique visitors in December (5.4% reach), according to Media
Metrix. MapQuest.com is continuing its growth in 2000, reaching 6.1% of users on
the Internet in January with 4.2 million unique visitors.
To provide MapQuest.com users with additional value-added services and to
capitalize on the millions of printed pages generated by MapQuest users each
month, in January, the company entered into a strategic partnership with
eCoupons.com to integrate the eCoupons website within its site. The agreement
provides MapQuest.com users with access to a wide variety of special coupons and
merchant offers that are geographically relevant.
Wireless
- --------
In the fourth quarter of 1999, MapQuest.com continued its aggressive expansion
into wireless applications. MetroOne Telecommunications, Inc. agreed to license
MapQuest.com mapping technology for subscribers of its national MetroOne
Enhanced Directory Assistance (EDA), targeted at the telecommunications
industry. MetroOne callers will be able to access door-to-door driving
directions and a variety of other mapping services simply by dialing 411.
MapQuest.com is also working with Nuance, a leader in voice interface software,
to provide directions and traffic reports to telephone users.
About MapQuest.com
- ------------------
MapQuest.com, Inc. is a leader in online, voice, and wireless destination
information solutions and digital mapping solutions. Implementing a diverse
strategy for distribution, MapQuest.com provides mapping and directions to the
end user anytime, anywhere. MapQuest.com licenses its technology to more than
1,000 business partners. Through these licensing agreements MapQuest.com helps
businesses integrate maps and driving directions into their Internet, intranet,
call centers, voice and wireless applications for improved marketing and
customer service functions. MapQuest.com's diverse network of business partners
includes: AOL (NYSE: AOL), CitySearch (Nasdaq: TMCS), Yahoo (Nasdaq: YHOO),
Lycos (Nasdaq: LCOS), InfoSpace (Nasdaq: INSP), Infoseek (Nasdaq: SEEK), Excite
@Home (Nasdaq: ATHM), Travelocity (NYSE: TSG), Wal-Mart (NYSE: WMT), Bank of
America (NYSE: BAC), Blockbuster, and Dayton Hudson (NYSE: DH).
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This press release includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 concerning
MapQuest.com's business, operations and financial condition. Such
forward-looking statements are subject to various known and unknown risks and
uncertainties and MapQuest.com cautions you that any forward-looking information
provided by or on behalf of MapQuest.com is not a guarantee of future
performance. Actual results could differ materially from those anticipated in
such forward-looking statements due to a number of factors, including (i) the
volatile and competitive nature of the Internet industry, (ii) changes in
domestic and foreign economic and market conditions, (iii) the effect of
federal, state and foreign regulation on MapQuest.com's business, (iv) the
development of competitive websites and businesses; (v) MapQuest.com's relative
mix of Internet and traditional and digital mapping businesses, (vi)
MapQuest.com's ability to protect its intellectual property rights and (vii) the
effect of any future acquisitions. Investors are also directed to consider the
other risks and uncertainties discussed in MapQuest.com's Securities and
Exchange Commission filings. All such forward-looking statements are current
only as of the date on which such statements were made. MapQuest.com does not
undertake any obligation to publicly update any forward-looking statements to
reflect events or circumstances after the date on which any such statement is
made or to reflect the occurrence of unanticipated events.
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MAPQUEST.COM, INC.
Unaudited Condensed Statements of Operations
(in thousands, except share and per share amounts)
<TABLE>
Three Months Ended Year Ended
December 31 December 31
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Revenues
Business $ 4,575 $ 1,648 $ 13,113 $ 6,536
Consumer 2,246 580 6,601 1,376
------------------------------ ------------------------
Total business and consumer revenues 6,821 2,228 19,714 7,912
Digital mapping 4,273 4,642 14,773 16,805
------------------------------ ------------------------
Total revenues 11,094 6,870 34,487 24,717
Cost of Revenues
Business and consumer 3,728 1,274 10,634 4,809
Digital mapping 3,201 3,817 11,371 12,837
----------------------------- ------------------------
Total cost of revenues 6,929 5,091 22,005 17,646
----------------------------- ------------------------
Gross profit 4,165 1,779 12,482 7,071
Operating expenses
Sales and marketing 6,924 1,530 19,889 5,243
Product development 2,172 537 6,008 2,955
General and administrative 3,618 805 6,946 2,326
----------------------------- ------------------------
Total operating expenses 12,714 2,872 32,843 10,524
----------------------------- ------------------------
Operating loss (8,549) (1,093) (20,361) (3,453)
Interest income and expense, net 640 9 1,680 54
Other income (expense) (2) 10 184 244
----------------------------- -------------------------
Loss before provision for income taxes (7,911) (1,074) (18,497) (3,155)
Provision for income taxes - - 1 -
----------------------------- -------------------------
Net loss $ (7,911) $ (1,074) $ (18,498) $ (3,155)
Less preferred stock dividends and accretion - (38) (378) (667)
----------------------------- -------------------------
Net loss applicable to common stockholders $ (7,911) $ (1,112) $ (18,876) $ (3,822)
----------------------------- -------------------------
Basic and diluted loss per share $ (0.23) $ (3.31) $ (0.84) $ (12.09)
Shares used to compute basic and diluted
loss per share 34,774,915 336,101 22,374,292 316,202
Pro forma basic and diluted loss per share $ (0.23) $ (0.04) $ (0.58) $ (0.11)
Shares used to compute pro forma basic and
diluted loss per share 34,774,915 28,014,056 31,707,638 27,994,126
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</TABLE>
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MAPQUEST.COM, INC.
Unaudited Condensed Balance Sheets
(in Thousands)
December 31 December 31
1998 1999
----------- -----------
ASSETS
Current assets:
Cash, cash equivalents, and investments
in marketable debt securities $ 564 $ 42,956
Accounts receivable, net 6,775 12,518
Inventories 1,365 1,197
Prepaid expenses and other current assets 629 2,597
--------- ---------
Total current assets 9,333 59,268
Property and equipment, net 1,844 5,011
Other assets 273 731
-------- ---------
Total assets $ 11,450 $ 65,010
======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 1,715 $ 3,246
Current portion of note payable 48 -
Accrued personnel costs 562 2,393
Advance billings on contracts 498 1,480
Deferred revenue 1,208 4,081
Other accrued liabilities 1,001 3,953
-------- ---------
Total current liabilities 5,032 15,153
-------- ---------
Convertible Redeemable Preferred Stock-Series A 6,550 -
Cumulative Redeemable Preferred Stock-Series B 8,332 -
Convertible Redeemable Preferred Stock-Series C 11,595 -
Notes receivable arising from issuance of preferred
stock (291) -
Stockholders' equity (deficit):
Common stock - 36
Notes receivable for common stock - (224)
Additional paid in capital 140 88,829
Retained deficit (19,908) (38,784)
--------- ---------
Total stockholders' equity (deficit) (19,768) 49,857
--------- ---------
Total liabilities and stockholders'
equity (deficit) $ 11,450 $ 65,010
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