September 5, 2000
Bingo.com Reviews Its Second Quarter
MARINA DEL REY, Calif., Sept. 5 /PRNewswire/ — Bingo.com, Inc. (OTC Bulletin Board: BIGR), ‘the most addicting experience on the Web,’ today sent the following letter to its stockholders, partners, employees and the Bingo.com community:
To Our Stockholders, Partners, Employees and the Bingo.com Community.
Our Second Quarter In Review
Thus far, 2000 has been an historic year for Bingo.com, filled with astonishing growth, corporate stability, and remarkable milestones. Since we launched our site a mere 250 days ago, our presence in the market has grown dramatically. Here are a few points to consider: we launched the new Bingo.com site in December 1999 with very few registered users, and currently we have over approximately 300,000 registered users. We currently grow registrations at a rate of 1.5 new registrants per minute, 24 hours a days, seven days a week. During the second quarter of 2000, we attracted over 2,000,000 unique visitors to our Web site. Our players spend more than 2 million minutes per day on our site, in aggregate. We served our 100 millionth Bingo cards to players earlier this month. We’ve built and launched stunning games, which are critically acclaimed in the market. The list goes on and on…
Bingo.com built these assets through a combination of creative content and proprietary technology. Owning these assets allows us to generate increased volumes of site traffic, develop fun content and loyal user communities, and launch innovative Internet advertising platforms at comparatively fixed costs. Nielsen//NetRatings in partnership with ACNielsen eRatings.com just ranked Bingo.com as “The Stickiest Site on the Internet” for the month of July, as reported by USA Today. “Stickiness” is an industry term for measuring how long users stay on a site. Their research shows that registered users are spending an astonishing average of 9 hours per month on the site. This measurement is extremely important to potential advertisers seeking a captive audience. Bain & Company, a leading global strategy-consulting firm, ranked Bingo.com in ‘the top10 e-businesses,’ for its innovation, impact and execution. Bingo.com has been voted the number one free bingo game on the Web by a number of polls. Moreover, by creating a unique blend of sticky, personal community atmosphere and entertaining features, Bingo.com has developed incredible player loyalty. Together with you, our players and shareholders, we have succeeded in making Bingo.com one of the most recognizable Internet brands, with numerous media accolades. Companies can spend hundreds of millions of dollars building brands. We have done it for considerably less. This bodes well for our future.
Now that much of the hardest engineering work is done, we are in a position to reap the rewards by licensing our proprietary technology out to others. For example, Bingo.com provides the bingo games to Netels, a new Spanish-language portal, and also recently launched our first American private label bingo game, which you can see at AlwaysFreeBingo. We are looking into adapting versions of our content for the Japanese wireless market, and are considering regular inquiries to license our bingo and poker games from interested parties all around the globe.
Recently, we announced relationships with Level 3 Communications, Sun Microsystems, and Oracle Corporation, to strengthen our infrastructure, which allows us to continue to serve more players. In April 2000, we filed a provisional patent application for a Web-based technology to monetize our incredible user sessions and potentially generate brand new revenue streams. We further expanded our games with the recent introduction of a new line-up of beautiful multi-player video poker games. A number of promising initiatives are continuously underway to develop new products and services designed to provide greater entertainment value to our loyal community.
We reported revenues from operations of $57,588 for the quarter ended June 30, 2000 — up from $4,280 in our first quarter of operations since after the launch of site in December of 1999. Revenues resulted primarily from advertising and co-branding contracts. Advertising sales, co-branding and other forms of revenue are continuing to fill the financial pipeline reducing our monthly burn rate. As a result our cash position remains strong. It is important to note that Bingo.com is just now becoming recognized as an advertising property. Ad buys on our site which were ‘test buys’ in Q2 have become full buys and, better yet, renewals in Q3. The size of the buys and the types of advertisers buying on our site is steadily improving. Our agency, Cox Interactive Sales, is finding more and more advertisers willing to spend significant dollars on Bingo.com. Building value is an evolutionary process, not an overnight occurrence. All things considered, we are doing remarkably well, so well in fact that we have reason to hope to be cash flow neutral to cash flow positive by the final quarter of this year. Thereafter we have high expectations: the Internet is still an awesome distribution engine, and we have all of the elements in place for success.
The company is projecting revenue from operations to be $275,000 in the third quarter and $450,000 in the final quarter of 2000.
We remain focused
Throughout this year, we have remained focused on enhancing the site content to deliver 100 percent customer satisfaction to our visitors on a daily basis.
The best is yet to come
As entertainment and game sites show unprecedented growth rates, Bingo.com continues to build a solid technology platform to take advantage of the exponential growth of the Internet. We are committed to improve our user experiences and expand our community, while developing new features and services. We believe Bingo.com is uniquely positioned to take advantage of the Internet opportunity as we carry out our mission to take the lead in online entertainment, and create long-term value in the company. As we look forward, we are very excited about what lies ahead. As we expand our community, add new game categories, and extend our services worldwide, we would like to thank our stockholders, partners, and employees for their support. But most of all, we especially want to thank our members.