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Greenfield Results and Intentions
Internet MR group Greenfield Online, Inc has reported financial results for Q1 2005, with net revenue of $15.3m, up 77% on the year, and gross profit up 86% to $10.8m. The company has made three major acquisitions in the last few months, and next plans to begin panel-building in Asia.
Q1 operating income was up from $0.4m in 2004 to $2.5m. Net income was $2.5m, compared to $0.3m for the first quarter of 2004. The company improved its operating margin to 17%.
President and CEO Dean Wiltse described the first quarter as 'extremely positive for us as our bookings and bid activity were at the highest levels in the Company's history, without taking into consideration acquisitions that occurred during the quarter'.
'We believe our base business, combined with our acquisitions of Ciao AG, Rapidata and goZing make Greenfield Online the largest independent survey solutions provider - from a revenue perspective - in a high growth market' continues Wiltse. 'We are now focused on the task of integration and driving revenue and operating synergies'. Together with its three recent acquisitions, the company now has a total of 700 worldwide customers and more than 400 employees in 10 countries across three continents.
Sales bookings in the first quarter, defined as new signed contracts for online survey work, reached $19.5m, up c.79% on the year and up 34% from the fourth quarter of 2004. Bid volume, defined as the total value of online survey projects submitted for bid by clients in Q1 of 2005was $108m, up c.69% on Q1 2004 and up 30% from Q4 2004.
Bob Bies, Executive VP and CFO, says that with 'only 15 percent of the global market opportunity estimated as having converted to the Internet by the end of 2004, we believe we have a vast growth opportunity ahead of us... In the first quarter of 2005, revenue from our Non-Top 20 customers grew by 188% over the prior year and the number of Non-Top 20 customers grew by 92%. We expect to build on our momentum in the second quarter and beyond'.
The company also announced a decision to discontinue building panel for competitors, which eliminates about $2m in revenue from its forecasts for the rest of the year, which are detailed on the company's site at www.greenfield.com . 'We estimate' concludes Bies 'that the pro-forma revenue growth rate of the combined entity (based on continuing operations) is approximately 45% year over year from 2004 to 2005'.
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