New-York-based online community and value added web content provider, Theglobe.com Inc, tripled its losses in the three months to September, marking the company’s first reported quarter as a public entity. Third quarter net losses jumped to $5.7m compared to last year’s losses of $1.8m while revenues rose to $1.6m against $207,000 last time. The company’s spectacular IPO in mid-November marked a new level of absurdity in the current internet stock frenzy as the shares, originally priced at $9, opened at $87 and then fell back to around $40. Theglobe.com’s primary source of revenue is the sale of advertising space on the web pages viewed by its 2 million members. Based upon this income and the hopes of future revenues from e-commerce arrangements and membership subscriptions, Theglobe.com is valued at around $430m, based on Monday’s closing share price of $44.50. The net proceeds from the recent float were $27.5m, which CFO Frank Joyce said would bring an added level of flexibility to the company’s growth plan. Increasing losses in the third quarter were attributed to the sudden increase in staff salaries and increased advertising budget, combined with the on-going costs of revising the firm’s web site.
