CoolSavings clients see 90% retention rate
In its results for the year ended December 31, 2003, the online printable coupon issuer CoolSavings Inc. reported that its 50 highest revenue-generating clients from 2002 had maintained a 90% retention rate for 2003.
In addition, the firm's client base for the year 2003 comprised nearly 50% of the top 100 North American advertisers of 2003, and its new cross-channel marketing platform, 'Buy Anywhere', also attracted key national retail advertisers. Through 'Buy Anywhere', retailers can provide CoolSavings members with the ability to take advantage of their promotions at the retail channel of the shopper's choice, such as the company's physical store, web site, catalogue, or call centre.
More than 80 major consumer packaged goods (CPG) clients used CoolSavings' services in 2003, resulting in a 94% increase in revenue from CPG companies from 2002 to 2003. Key products utilised by CPG clients included CoolSavings' lead generation service, enhanced coupon technology, and the CoolSavings Marketing Network (a distribution network for promotional offers from CPG manufacturers, retailers and other marketers).
Member activity Members' usage of the CoolSavings service remained strong during the year, with more than 11.5 million members using CoolSavings a total of 75 million times during 2003. Although new member registrations fell by 8% in 2003 compared to 2002, revenue producing actions (consumer responses to offers) increased by 11%, suggesting better offer selection, usability, and targeting during 2003.
Financial results The company posted net income of US$1.5 million in the fourth quarter of 2003 compared to breakeven results during the same quarter of 2002. Net revenues in the fourth quarter of 2003 were US$8.1 million compared to US$8.3 million in the same period of 2002. The decrease in revenue reflected fewer new member registrations due to market-wide increases in the price of online advertising.
Gross profit in the fourth quarter of 2003 was US$7.6 million, or 94% of net revenues, compared to US$8.1 million, or 97% of net revenues in the fourth quarter of 2002. Total operating expenses in the fourth quarter of 2003 were US$6.0 million compared to US$7.8 million for the same period of 2002.
The Company's income from operations was US$1.6 million for the fourth quarter of 2003 compared to US$0.3 million for the fourth quarter of 2002. Net income for the fourth quarter of 2003 was US$1.5 million.
"This was an important quarter and year for CoolSavings on a number of levels," said Matthew Moog, president and CEO for CoolSavings, Inc. "With the enhancements we have made to our consumer data collection and targeting capabilities, and a solid client base containing many of the nation's largest advertisers, we believe we are poised for continued success in 2004."