GoTo reported fourth quarter 2000 revenue of $39.8 million, an almost 200% increase over revenue of $13.3 million in the fourth quarter of 1999, and a 59% increase over revenue of $25.1 million in the third quarter of 2000.
GoTo reported a fourth quarter 2000 net loss, excluding acquisition-related charges and the impairment of acquisition-related goodwill and intangible assets, of $16.8 million, or a pro forma net loss of $0.34 per basic and diluted share, compared to a net loss of $7.2 million, or a pro forma net loss of $0.17 per basic and diluted share, in the fourth quarter of 1999. In the third quarter of 2000, GoTo reported a net loss, excluding acquisition-related charges, of $10.7 million, or a pro forma net loss of $0.22 per basic and diluted share. During the fourth quarter of 2000, the company wrote off $309.3 million of goodwill and intangible assets related to its acquisitions of Cadabra Inc. and AuctionRover.com, Inc. in accordance with Financial Accounting Standard 121, due to market conditions.
For the full year 2000, GoTo reported revenue of $103.1 million, a 285% increase over revenue of $26.8 million in 1999. The company’s net loss for 2000, excluding acquisition-related charges, the impairment of acquisition-related goodwill and intangible assets, and other income of $21.5 million resulting from the May 2000 settlement of GoTo’s trademark infringement lawsuit against the Walt Disney Company, was $47.7 million, or a pro forma net loss of $0.99 per basic and diluted share. The company reported a net loss of $29.3 million, or a pro forma net loss of $0.77 per basic and diluted share, in 1999. Including the other income of $21.5 million resulting from the trademark infringement lawsuit, GoTo’s 2000 net loss was $26.2 million, or a pro forma net loss of $0.55 per basic and diluted share.
We had a fantastic quarter to top off a breakthrough year, said Ted Meisel, president and chief executive officer, GoTo. Our revenue growth is the result of establishing Pay-for-Performance Search as a standard — the best way for Web sites to improve search as well as optimize revenue. We intend to leverage our leadership position in the coming year both to increase revenues in a difficult advertising environment and to reach our stated goal of break even in the fourth quarter.
At the end of the fourth quarter of 2000, GoTo’s unrestricted cash and liquid investment position was approximately $55.0 million, with less than $1.0 million of debt on its balance sheet.
