Autobytel Announces 1Q Results, More

By Nick Zulovich, Staff Writer
May 14, 2007

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IRVINE, Calif. — Increased revenue, combined with a payment from a patent infringement settlement, led to a positive operating income total for the first quarter of this year for Autobytel.

The company said its operating income for the first quarter of 2007 came in at $3.1 million, reversing a course where Autobytel reported operating losses during both the fourth quarter of 2006 and the same time period last year.

Officials noted that its operating loss was $9.1 million during the first quarter and $8 million during the fourth quarter of last year.

Autobytel's operating income for the first quarter of the current year was aided by $9.9 million in conjunction with a settlement with Dealix Corp., officials said.

The company also highlighted that its revenue from the first quarter of this year increased 6 percent, as compared to the fourth quarter last year. Revenue for the most recent quarter was $28.4 million, compared to $26.8 million during the fourth quarter last year. Autobytel mentioned that revenue during the first quarter of 2006 was $28.3 million.

Executives explained the percentage breakdown of how its revenue accumulated during the first quarter. They noted that 61 percent of revenue came from leads fees, another 17 percent from advertising and 22 percent from customer relationship management services. As compared to the first quarter of 2006, Autobytel explained that a 4-percent decline in revenue from lead referral fees was offset by a 25-percent increase in advertising revenue.

Autobytel also reported that the number of used-vehicle lead referral dealerships increased from 1,550 at the first quarter of last year to 1,640 at the first quarter of this year.

The company's amount of new-vehicle lead referral dealerships also increased from 2,590 to 2,640 at the first quarter of this year.

Meanwhile, Autobytel said its number of finance lead referral customers also went from 350 to 400 during that span.

Furthermore, officials noted that Autobytel's amount of domestic and restricted international cash and equivalents, as well as short-term investments, totaled $28.1 million at the end of the first quarter. That figure is $2-million more than what the company reported at the end of the fourth quarter of 2006.

"We are off to a solid start for the year," said Jim Riesenbach, president and chief executive officer of Autobytel.

"After spending much of 2006 laying a solid foundation for the future, we now are focused on our transformation to a more media-centric business model. By offering consumers an unrivaled online experience and further establishing our role as a premier online marketing partner for auto dealers and manufacturers, we believe Autobytel will be well positioned for long-term, sustainable growth and profitability," he continued.

Autobytel Highlights Upcoming Launch of MyRide.com

Company officials mentioned that MyRide.com — its new consumer Web site — is scheduled to be unveiled in June.

Autobytel explained that MyRide.com is designed to give consumers an integrated vertical search experience built around the entire vehicle purchase and ownership lifecycle. The company claimed the site is expected to provide extensive editorial and multimedia content, a largest base of used-vehicle listings, access to more than 1 million parts and accessories as well as social networking capabilities.

"We are excited about MyRide.com and its potential to transform the automotive Internet," Riesenbach point out.

"The power and robust content of MyRide.com should help us achieve our vision of becoming the leading online destination and brand that assists consumers in researching, buying and owning an automobile. The large consumer following we expect to attract to MyRide.com also should facilitate our journey toward becoming the online marketer of choice for auto dealers and manufacturers," he continued.

"The auto industry continues to account for a large and growing percentage of marketing dollars spent online, and we are confident in our ability to capture a growing share of this opportunity. With positive industry trends, a renewed focus on our core competencies and planned technology infrastructure and business process improvements, our goal of reaching profitability before the end of 2008 remains on track, and we are optimistic about our prospects for the future," Riesenbach added.

Autobytel Reaches Agreement with Technology Partner for MyRide.com

Autobytel officials also recently announced they selected Kosmix to provide Web-search technology for MyRide.com. They explained that MyRide.com will use Kosmix's categorization technology to present consumers with improved search-based content.

Kosmix officials mentioned that they plan to enhance MyRide.com's content in several areas, including:

—Reviews and Ratings

—Safety and Recalls

—Advice and Tips

—Future and Classic Cars

—Racing and Performance

—Insurance and Loans

—Fuel Economy

—Used Cars

—Green Cars

—Community Blogs and News

—Service and Repair

—Parts & Accessories

"Kosmix's best-in-Web technology will help us help consumers break through the ‘walled garden' of the current auto site model, providing seamlessly integrated content and search results that guide consumers throughout the automotive lifecycle, whether they are in the market for a new car or truck or just searching for the latest in car accessories," Riesenbach explained.

Also commenting about the partnership was Anand Rajaraman, co-founder of Kosmix.

"Categorization of the vast content on the Web is the next wave of the Internet, making every user interaction more meaningful and customized," Rajaraman explained.

"Our powerful categorization engine, combined with Autobytel's extensive industry reach and content portfolio, will give millions of consumers a way to explore and discover automotive content more efficiently and effectively than ever before," Rajaraman continued.

Autobytel Receives Honors at California Event

In other recent news, company officials said that Autobytel was chosen as one of the California Innovation Corridor's 75 Innovation All-Stars during the California Tech 100's conference held last month.

In addition, Autobytel noted that it was one of 15 companies given the California Innovation Award for outstanding leadership. The awards were endorsed by the California Commission for Jobs and Economic Growth, which is a nonprofit corporation whose members are chosen by the governor to advise him on how to expand jobs and economic growth in the state.

"We believe innovation and entrepreneurship are the drivers of economic growth in California," explained Mark Mosher, executive director of the commission.

"These Innovation All-Stars are models for our state," Mosher added.

Riesenbach also commented about Autobytel receiving the honors.

"Autobytel is pleased to be recognized by the California Innovation Corridor as an Innovation All-Star," Riesenbach noted. "Autobytel has always been committed to fulfilling the ever-changing needs of online consumers."

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