posted 04-19-2000 11:30 AM         

"Our goal is to be the leading e-commerce enabling company for businesses and merchants."
- Key there is enabling, not selling books and videos

"We currently derive substantially all of our revenues from merchant services and the ShopNow marketplace. With the recent launch of b2bNow.com, we expect to derive additional revenues from the purchase, sale and exchange of goods and services through that portal."
- explanation of both marketplace revenue (listings) and enabling revenue (helping merchants get online), as well as working more with b2b clients.

"Revenues from merchant services are generated principally through development fees, hosting fees and sales and marketing services. Our merchant services can be purchased as a complete end-to-end suite of services or separately, allowing businesses and merchants to select only those services they desire. We recognize revenues from development of custom applications and online stores and marketing projects on a percentage of completion basis over the period of development or the period of the marketing project. These projects generally range from two to five months. Hosting contracts typically have a term of one year, with fees charged on a monthly basis."
- Explanation of how revenue is received from their businesses

"We expect to derive revenues from transactions, advertising, merchandising and services fees from b2bNow.com, our business-to-business portal and online marketplace. In addition, in January 2000 we entered into a definitive agreement to acquire Ubarter.com, which operates an online business-to-business barter marketplace. We plan to incorporate the barter marketplace as an additional feature of b2bNow.com to provide businesses with an alternative way to conduct transactions with each other. As of December 31, 1999, we had not recorded any revenues from b2bNow.com."
- expectation of revenue explanation for b2bNow

"Revenues for the year ended December 31, 1999 were $37.0 million compared to $7.2 million for the year ended December 31, 1998, an increase of $29.8 million."
- Total revenues

"The ShopNow marketplace and transaction processing portion of revenues for the year ended December 31, 1999 was $25.8 million compared to $4.2 million for the year ended December 31, 1998, an increase of $21.6 million. The BuySoftware.com portion of these revenues was 37.7% for the year ended December 31, 1999, compared to 93.4% for the year ended December 31, 1998. During 1999 we experienced a significant increase in our merchant listings, shopper traffic and affiliate and syndication shopping sites, which resulted in an increase in merchandising and advertising revenues, transaction processing fees and sales of products to shoppers, exclusive of BuySoftware.com."
- So website revenue is around 69.7% of total revenue (though how much of that comes from etailing specific sites is unclear)

"The merchant services portion of revenues for the year ended December 31, 1999 was $11.1 million compared to $2.9 million for the year ended December 31, 1998, an increase of $8.2 million. The increase in our merchant services revenues was due primarily to increased demand for merchant services, including the services of Media Assets."
- So 30% comes from the enabling business

Now based on this (assuming I understand it correctly), i would like to see a larger percentage coming from the 30% side, but I expect it to grow in the future once SPNW starts to realize more of the potential with the b2bNow site, as more revenues will come from enabling b2b sites than from etailing sites.

posted 04-19-2000 10:15 AM         

quote:

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Originally posted by smario:
I think the major problem is the fact that investors are associating this company with etailing. While it's true that they provide a forum for etailers to sell their wares on the net, most importantly they are an e-commerce enabler.

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posted 02-17-2000 10:35 AM         

"ShopNow.com Inc. (Nasdaq: SPNW), a leading e-commerce enabling company, announced today the pricing of its public offering of 8,000,000 shares of common stock at 14.50 per share. Of the shares being offered, 7,913,607 shares are being offered by ShopNow.com and 86,393 shares are being offered by certain selling shareholders. In addition, ShopNow.com has granted the underwriters an option to purchase a maximum of 1,200,000 shares to cover over-allotments. The closing of the offering is anticipated to occur on February 18, 2000."