EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contacts:
Heidi Hutchinson Cecile Cheung
Senior Public Relations Manager Senior Account Executive
Aptimus, Inc. Edelman Seattle
(206) 441-9100 x 211 (206) 223-1606
[email protected] [email protected]
NETWORK GROWTH AND NEW TECHNOLOGY
FROM ACQUISITION OF XMARKSTHESPOT SPURS
NEW 2001 FINANCIAL MODEL FOR APTIMUS
New Model Focuses on Lead Generation as Primary Revenue Source
SEATTLE, Dec. 13, 2000 -- Aptimus, Inc. (NASDAQ:APTM), a single-source
online direct marketing network, today announced a new financial model for 2001.
The new model maintains the same analysts' expectations for total revenues of
$37 million for 2001, while relying more heavily on lead generation as the core
revenue source due to the growth in the company's network strategy.
The growth in projected lead generation revenues replaces a projected
decline in e-mail marketing revenues, which are expected to remain soft for some
time. While the company continues to believe in e-mail marketing as a major
long-term business opportunity, the company is no longer dependent on that
source of revenue to achieve its 2001 objectives. The company also continues to
project operating profitability in the second half of 2001.
Through its recent acquisition of XMarkstheSpot, a leading provider of
pay-for-performance customer acquisition infrastructure for direct marketers,
Aptimus now possesses the scalable technology necessary to build out its network
strategy. In addition, all of XMarkstheSpot's clients and partners have been
incorporated into The Aptimus Network, substantially increasing revenue
potential for 2001.
"Our network model is not only working, but we anticipate it ramping
significantly during 2001 based on what we've learned to date," said Tim Choate,
chairman and chief executive officer of Aptimus, Inc. "Early results indicate
that our recent shift to a network strategy was the right choice for Aptimus,
which set a new record in October of over two million orders for the month.
However, the network initially overwhelmed our preparations for it, forcing us
to identify a network-oriented technology solution. With the acquisition of
XMarkstheSpot, which closed last week, we now have a technology platform to
scale the network and our lead generation business more rapidly."
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Aptimus 2001 Model
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The new financial model, which projects 85 percent of revenues from lead
generation and 15 percent from marketing services (banner advertising, e-mail
marketing, etc.), centers around The Aptimus Network(TM), which presents
consumers with context-driven offers while distribution partners share in the
cost-per-action (CPA) results. The key features provided by the XMarkstheSpot
technology include increased targeting ability, dynamically served offers, lead
volume management by client and offer, and multiple offer presentation formats
for distribution partners. The revenue mix in the revised model differs
significantly from original analysts' projections of 60 percent of revenues from
marketing services/e-mail marketing and 40 percent of revenues from lead
generation in 2001.
"We strongly believe that the technology devised by XMarkstheSpot combined
with the opportunities engendered by Aptimus' network strategy will produce the
scale we need to achieve significant revenue growth in lead generation for
2001," said Choate. "While we remain optimistic about the future of e-mail
marketing, which we believe is superior to traditional direct mail, we feel it
is prudent in the short term to lower our projections for that revenue stream
given market dynamics, with lead generation through our network strategy as our
main focus."
Aptimus also announced that because the company has moved to a network
model, it will no longer report Club FreeShop membership and repeat order
percentage metrics, which are site-centric, but will continue to report
registered users. The company also will begin reporting the number of orders
taken during each quarter as a measure of network growth.
About Aptimus
Aptimus (formerly FreeShop.com, Inc.) is building the most powerful online
direct marketing network. We provide a single-source online marketing solution
that enables marketers to reach targeted audiences with specific promotional
offers throughout the Internet. With more than 80,000 specialized Web sites and
e-mail channels, as well as many of the top 100 Web properties, The Aptimus
Network presents consumers with relevant offers geared to their immediate
interests, allowing marketers to reach consumers with the right offers when they
are most likely to respond. The Aptimus Network includes a wide range of partner
sites such as NBC Internet, Inc., About, Inc., iVillage, Inc. and Aptimus-owned
sites including FreeShop.com (www.freeshop.com), Desteo (www.desteo.com);
CatalogSite (www.catalogsite.com), Free Magazine Shop
(www.freeshopmagazines.com) and FreeShop Coupons and Deals
(www.freeshopcoupons.com).
Aptimus is headquartered in Seattle, and is publicly traded on NASDAQ under
the symbol APTM. For more information, please visit www.aptimus.com.
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Aptimus 2001 Model
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This press release contains statements that may constitute "forward-looking
statements" within the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act
of 1995. Such statements include comments regarding the ability and anticipated
timing for the company to achieve profitability, the expected results or success
of particular programs or undertakings and the future rate of growth of
FreeShop.com. Prospective investors are cautioned that any such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and actual results may differ materially from those contemplated
by such forward-looking statements. Important factors currently known to
management that could cause actual results to differ materially from those in
forward-looking statements include, without limitation, fluctuation of the
company's operating results, the ability to compete successfully, the ability of
the company to maintain current client relationships and attract new ones, and
the ability to integrate acquired companies. For additional factors that may
cause actual results to differ materially from those contemplated by such
forward-looking statements, please see the "Risk Factors" described in the
company's Annual Report on Form 10-K, dated March 31, 2000, and in other
quarterly reports and filings on file with the SEC, which Risk Factors are
incorporated herein as though fully set forth. The company undertakes no
obligation to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to future
operating results.
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