<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JANUARY 24, 2000
- --------------------------------------------------------------------------------
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
Date of Report (Date of earliest event reported): JANUARY 27, 2000
NBC INTERNET, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 000-27899 94-3333463
- ------------------------------- ----------- -------------------
(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
225 Bush Street
San Francisco, California 94104
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 288-2500
N/A
-------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS.
On January 27, 2000, the Registrant issued a press release, a copy of
which is attached hereto as Exhibit 99.1 and incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
99.1 Press Release issued by the Registrant dated January 27, 2000
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NBC INTERNET, INC.
Date: Janaury 27, 2000 /s/ John Harbottle
--------------------------------------------
John Harbottle, Executive Vice President
Finance and Chief Financial Officer
<PAGE>
Exhibit 99.1
FOR IMMEDIATE RELEASE
JANUARY 27, 2000
NBC INTERNET REPORTS FOURTH QUARTER AND 1999 FISCAL YEAR-END
FINANCIAL RESULTS
QUARTERLY PRO FORMA REVENUE GROWTH MARKS 163 PERCENT INCREASE
OVER SAME PERIOD LAST YEAR
(SAN FRANCISCO, CA) - NBC Internet, Inc. (Nasdaq: NBCI), a branded global
integrated media company, today announced its financial results for the
fourth quarter ended December 31, 1999. NBC Internet, Inc. (NBCi) reported
pro forma revenues totaling $27.3 million for the fourth quarter ended
December 31, 1999, an increase of 163 percent over pro forma revenues of
$10.4 million for the fourth quarter of 1998.
Pro forma revenues represent the combination of XOOM.com, SNAP.com and the
NBC Multimedia Division (which consists of NBC.com, NBC Interactive
Neighborhood and VideoSeeker), as if they had been combined at the beginning
of each period. Pro forma revenues, which are not presented on a basis
consistent with generally accepted accounting principles ("GAAP"), exclude
certain non-recurring revenues earned from equity instruments by the NBC
Multimedia Division, as well as revenues earned by companies purchased by
XOOM.com prior to their acquisition dates. Pro forma revenues have been
provided for illustrative purposes only.
For the quarter, NBCi reported pro forma net loss of $51.2 million, or $1.64
per share. This compares to a pro forma net loss of $24.6 million or $1.21
per share reported in the same period of the previous year. Pro forma net
loss excludes the effects of acquisition-related amortization of intangible
assets, purchased in-process research and development charges, and one-time
non-recurring charges incurred in connection with the NBCi merger, which
closed on November 30, 1999.
<PAGE>
In addition, NBCi reported annual pro forma revenues of $74.0 million for
1999, an increase of 234 percent over annual pro forma revenues of $22.1
million for 1998. NBCi reported a pro forma net loss for 1999 of $124.0
million, or $6.08 per diluted share, as compared to a pro forma net loss of
$55.6 million, or $5.30 per diluted share for 1998.
On a basis consistent with GAAP, revenues earned by Snap.com and the NBC
Multimedia Division prior to the NBCi merger are excluded from total revenues
reported by NBCi. NBCi reported GAAP revenues of $15.7 million for the fourth
quarter of 1999, an increase of 354 percent over revenues of $3.5 million for
the fourth quarter of 1998.
GAAP net loss, which includes the effects of acquisition-related amortization
of intangible assets, purchased in-process research and development charges,
and one-time non-recurring charges incurred in connection with the NBCi
merger for the fourth quarter ended December 31, 1999 was $68.2 million, or
$2.18 per share. This compares to a net loss of $4.4 million, or $0.44 per
share, reported in the same period of the previous year.
In addition, NBCi reported GAAP annual revenues of $35.6 million for 1999, an
increase of 329 percent over annual revenues of $8.3 million for 1998, and a
GAAP net loss for 1999 of $86.8 million, or $4.26 per diluted share, as
compared to a net loss of $10.8 million, or $1.37 per diluted share for 1998.
These results are preliminary, are subject to the completion of an audit of
NBCi's December 31, 1999 financial statements and are not necessarily
indicative of the results to be expected for future periods.
To hear comments on NBCi's fourth quarter and year-end financial results from
NBCi's CEO Chris Kitze; CFO and EVP, Finance John Harbottle; and President
and COO Edmond Sanctis, please visit NBCi's corporate Web site
at HTTP://WWW.NBCI.COM and click on "Investor Relations." A listen-only link
to the earnings call will appear on the top of the page.
<PAGE>
ABOUT NBC INTERNET, INC. (NBCI)
NBC Internet, Inc. (NBCi), a branded global integrated media company,
commenced operations in November 1999. NBCi integrates major media platforms,
including Internet, broadcast and cable television and radio, to deliver
powerful ways for partners to connect with users and customers. NBCi's
flagship Web site, Snap (www.snap.com), provides a comprehensive online
experience to users worldwide via Internet search & directory, community,
shopping, e-commerce, multimedia and entertainment services across all
bandwidths.
NBCi was created through the combination of Snap, XOOM.com, NBC.com, NBC
Interactive Neighborhood, VideoSeeker and a 10 percent equity stake in
CNBC.com. NBC Internet publicly trades under the ticker symbol NBCI on the
Nasdaq Stock Market-Registered Trademark-. NBC, a subsidiary of General
Electric (NYSE: GE), holds a 47 percent ownership stake in NBCi and brings to
the venture the storied heritage of 70 years of branded media and technology
innovations. NBCi is headquartered in San Francisco and has offices in New
York City, Los Angeles, Chicago and Paris, France. For more information about
NBCi and its constituent Internet services, please see the NBCi corporate Web
site at WWW.NBCI.COM.
THIS PRESS RELEASE CONTAINS STATEMENTS THAT ARE FORWARD-LOOKING. THESE
STATEMENTS ARE BASED ON NBCI'S EXPECTATIONS OF ITS FUTURE RESULTS AS OF THE
DATE OF THIS PRESS RELEASE. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
PROJECTED BECAUSE OF A NUMBER OF RISKS AND UNCERTAINTIES, INCLUDING THOSE
LISTED FROM TIME TO TIME IN NBC INTERNET INC.'S SEC REPORTS, INCLUDING BUT
NOT LIMITED TO XOOM.COM, INC.'S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED
DECEMBER 31, 1998; XOOM.COM'S QUARTERLY REPORTS ON FORM 10-Q FOR THE PERIODS
ENDED MARCH 31, 1999, JUNE 30, 1999 AND SEPTEMBER 30, 1999; THE REGISTRATION
STATEMENTS ON FORM S-4 AND FORM S-1 FILED BY NBC INTERNET, INC., AS AMENDED.
IMPORTANT FACTORS THAT COULD CAUSE THE RESULTS TO DIFFER MATERIALLY FROM
THOSE IN ANY SUCH FORWARD-LOOKING STATEMENTS INCLUDE: NBCI'S LIMITED
OPERATING HISTORY; UNPREDICTABILITY OF ITS QUARTER-TO-QUARTER RESULTS; ITS
UNPROVEN BUSINESS MODEL AND DEPENDENCE ON MEMBERS; RISKS ASSOCIATED WITH ITS
INTERNATIONAL OPERATIONS; ITS RELIANCE ON A NETWORK INFRASTRUCTURE; ITS
DEPENDENCE ON VENDORS AND SUPPLIERS; MANAGEMENT OF ITS GROWTH AND EXPANSION;
RISKS ASSOCIATED WITH BRAND DEVELOPMENT; ITS RELIANCE ON ADVERTISING REVENUE;
INTENSE COMPETITION WITH OTHER WEB COMMUNITIES AND BUSINESSES; THE RISKS OF
INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS; RISKS ASSOCIATED WITH
ACQUISITIONS; AND RELIANCE ON STRATEGIC RELATIONSHIPS.
================================================================================
CONTACTS:
Investor Relations Contact:
Roger Maes, NBCi Corporate Communications, 415/288-2568, [email protected]
Media Contact:
Robert Silverman, NBCi Corporate Communications, 212/664-2756,
[email protected]
<PAGE>
NBC INTERNET, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31, December 31,
------------------------------- ------------------------------
1999 1998 1999 1998
---------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net revenue:
Advertising..................................... $ 22,029 $ 8,107 $ 58,401 $ 15,975
E-commerce...................................... 5,252 2,262 15,628 6,174
---------------- -------------- -------------- --------------
Total net revenue.................................. 27,281 10,369 74,029 22,149
Cost of net revenue................................ 9,217 5,896 31,243 17,802
---------------- -------------- -------------- --------------
Gross profit...................................... 18,064 4,473 42,786 4,347
Operating expenses:
Operating and development....................... 6,331 3,245 19,112 10,140
Sales and marketing............................. 16,720 8,433 51,044 18,864
General and administrative...................... 8,163 4,804 26,907 13,794
Promotion and advertising provided by NBC....... 39,656 10,576 72,606 14,060
Amortization of deferred compensation.......... 1,377 465 5,079 1,576
---------------- -------------- -------------- --------------
Total operating expenses........................... 72,247 27,523 174,748 58,434
---------------- -------------- -------------- --------------
Loss from operations.............................. (54,183) (23,050) (131,962) (54,087)
Other income (expense):
Interest income................................. 4,782 114 10,995 187
Interest expense............................... (1,786) (1,684) (3,001) (1,704)
---------------- -------------- -------------- --------------
Pro forma net loss................................ $ (51,187) $(24,620) $(123,968) $ (55,604)
================ ============== ============== ==============
Pro forma net loss per share - basic and diluted.. $ (1.64) $ (1.21) $ (6.08) $ (5.30)
================ ============== ============== ==============
Number of shares used in pro forma per share
calcuation - basic and diluted............ 31,249 20,407 20,386 10,489
================ ============== ============== ==============
</TABLE>
Note: Certain prior year balances have been reclassified to conform with current
year presentation.
This pro forma statement of operations information for the three and twelve
months ended December 31, 1999 and 1998 is for illustrative purposes only and
is not prepared in accordance with generally accepted accounting principles.
It combines the operating results of Xoom.com, Snap! LLC, and the NBC
Multimedia Division (which consists of NBC.com, NBC-IN.com, and VideoSeeker)
as if they had been combined as of the beginning of the periods presented.
This pro forma statement of operations excludes the following items:
(i) acquisition-related amortization of intangible assets and purchased
in-process research and development charges of $28.0 million and $38.4
million for the three and twelve month periods ended December 31, 1999,
respectively, and $0.8 million and $2.6 million for the three and twelve
month periods ended December 31, 1998, respectively;
(ii) a one-time restructuring charge of $17.8 million for the three and
twelve month periods ended December 31, 1999. Both one-time charges were
incurred in connection with the merger of Xoom.com, Inc., Snap! LLC, and the
NBC Multimedia Division;
(iii) historical advertising revenues of $1.4 million and $10.0 million for
the three and twelve month periods ended December 31, 1999, respectively, and
$1.8 million and $5.1 million for the three and twelve month periods ended
December 31, 1998, respectively. Such revenues were earned from the receipt
of equity instruments in connection with the NBC Multimedia Division's
outsourcing agreements; and
(iv) historical advertising revenues of $0.3 million earned by MightyMail
Networks, Inc, Paralogic Software Corporation, and LiquidMarket LLC in the
year ended December 31, 1999 prior to each of their respective acquisition
dates, and $0.9 million earned by MightyMail Networks, Inc, Paralogic
Software Corporation, LiquidMarket LLC, Global Bridges Technologies, Inc,
Paralogic Corporation, and Pagecount, Inc. for the twelve months ended
December 31, 1998 prior to each of their respective acquisition dates.
<PAGE>
NBC INTERNET, INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31, December 31,
------------------------------- -------------------------------
1999 1998 1999 1998
--------------- --------------- --------------- --------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C>
Net revenue:
Advertising............................................. $ 10,426 $ 1,191 $ 19,953 $ 2,144
E-commerce.............................................. 5,252 2,262 15,628 6,174
--------------- --------------- --------------- --------------
Total net revenue.......................................... 15,678 3,453 35,581 8,318
Cost of net revenue........................................ 6,226 2,147 16,800 4,927
--------------- --------------- --------------- --------------
Gross profit............................................... 9,452 1,306 18,781 3,391
Operating expenses:
Operating and development................................ 3,694 1,050 7,674 2,939
Sales and marketing...................................... 9,646 934 21,952 2,393
General and administrative............................... 4,636 1,208 11,482 3,366
Promotion and advertising provided by NBC................ 16,858 - 16,858 -
Amortization of deferred compensation.................... 467 305 962 1,416
Purchased in-process research and development............ - - 2,603 790
Amortization of intangible assets........................ 27,986 756 35,822 1,843
Non-recurring charges.................................... 17,801 - 17,801 -
--------------- --------------- --------------- --------------
Total operating expenses.................................... 81,088 4,253 115,154 12,747
--------------- --------------- --------------- --------------
Loss from operations........................................ (71,636) (2,947) (96,373) (9,356)
Other income (expense):
Interest income.......................................... 4,750 151 10,963 187
Interest expense......................................... (1,331) (116) (1,421) (135)
Interest expense related to warrant...................... - (1,494) - (1,494)
--------------- --------------- --------------- --------------
Net loss.................................................... $(68,217) $(4,406) $(86,831) $(10,798)
=============== =============== =============== ==============
Net loss per share - basic and diluted...................... $ (2.18) $ (0.44) $ (4.26) $ (1.37)
=============== =============== =============== ==============
Number of shares used in per share
calcuation - basic and diluted...................... 31,249 9,968 20,386 7,879
=============== =============== =============== ==============
</TABLE>
Note: Certain prior year balances have been reclassified to conform with
current year presentation.
<PAGE>
NBC INTERNET, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
December 31, December 31,
1999 1998
-------------------- -------------------
ASSETS (unaudited)
<S> <C> <C>
Current assets:
Cash, cash equivalents & marketable securities................ $ 166,011 $ 56,575
Accounts receivable, net...................................... 17,223 1,368
Inventories................................................... 461 322
Note receivable from NBC, current portion..................... 78,288 -
Other current assets.......................................... 46,346 308
-------------------- -------------------
Total current assets............................................. 308,329 58,573
Fixed assets, net................................................ 18,096 2,071
Intangible assets, net........................................... 1,759,473 5,517
Marketable securities, including restricted cash of $8,990....... 27,035 -
Long-term note receivable from NBC, less current portion......... 261,712 -
Other assets..................................................... 119,451 713
-------------------- -------------------
Total assets..................................................... $ 2,494,096 $ 66,874
==================== ===================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other accrued liabilities................ $ 50,452 $ 4,294
Notes payable, current portion................................ 155 1,276
Amounts due to related parties, current portion............... 41,792 -
Deferred revenue.............................................. 18,943 443
-------------------- -------------------
Total current liabilities........................................ 111,342 6,013
Convertible notes payable due to NBC and its affiliates....... 370,000 -
Long-term obligations, less current portion................... 12,970 528
-------------------- -------------------
Long-term liabilities............................................ 382,970 528
Stockholders' equity:
Common stock.................................................. 2,100,111 75,606
Accumulated other comprehensive income........................ 4,994 -
Deferred compensation......................................... (4,121) (904)
Accumulated deficit........................................... (101,200) (14,369)
-------------------- -------------------
Total stockholders' equity....................................... 1,999,784 60,333
-------------------- -------------------
Total liabilities and stockholders' equity....................... $ 2,494,096 $ 66,874
==================== ===================
</TABLE>
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