-- Attained record consolidated GAAP revenues for Q42009 and FY2009
-- 106% (2.06X) year-over-year GAAP revenue growth for Q42009
-- 87% (1.87X) year-over-year GAAP revenue growth for FY2009
-- Fourth consecutive year of more than 75% annualized GAAP revenue
growth
-- Fourth consecutive year of increasing annualized GAAP revenue
growth
-- GAAP profitable, generating positive cash flow
-- Forecasting ongoing profitability and free cash flow in FY2010
-- Increased total enterprise retailer customer count by more than 50% in
FY2009
-- Newest Tier 1 Mercent clients include Fossil®, Orvis®, Bluefly,
Inc., National Business Furniture®, Benchmark Brands, PETCO
and more
-- Attained record aggregate client gross merchandise value (GMV) for
Q42009 and FY2009
-- 121% (2.21X) year-over-year GMV growth in Q4 2009
-- 84% (1.84X) year-over-year GMV growth in FY2009
-- Fourth consecutive year of more than 75% annualized GMV growth
-- Fourth consecutive year of increasing annualized GMV growth
-- Expanded retailer online advertising reach with support for new
profit-generating programs from Google, Amazon, eBay, Microsoft Bing
and others
-- Expanded Mercent Retail™ software license sales through new strategic
channel partners, including online digital advertising agencies
-- Increasing company head count in FY2010 by approximately 30%
Tom Alberg, founding partner and managing director of Madrona Venture
Group, commented, "Mercent is succeeding at the epicenter of three growing
technology segments: SAAS technologies, online advertising and e-commerce.
The company's customer growth and expanded product suite combined with its
financial strength in 2009 occurred in the face of market declines in
online advertising and a difficult year for retailers in general. Mercent
has proven to its customers they are the partner of choice to succeed
online and the company is well-positioned as a market winner for the
long-term."
According to Wall Street analyst firm Collins Stewart, 2010 will be the
year of revival for online advertising and eCommerce. In its annual
"Internet and Software" outlook report dated January 11, 2010, the firm
forecasts worldwide Internet advertising to reach $47 billion in 2010, up
14% from 2009, with search continuing to outpace the overall market growth,
accounting for 54% of worldwide Internet advertising. The firm also expects
strong eCommerce growth in 2010, anticipating eCommerce sales to increase
by 14% over 2009 to reach approximately $510 billion.
Industry veteran and Mercent investor Steve Hamerslag supported Alberg
saying, "Mercent is a model of future success and investor value creation
with its highly predictable, recurring software subscription revenue model;
strong customer growth from more than 60% of retailers on the Internet
Retailer Top 250 list; and a proven and revenue-generating SAAS technology.
In today's environment investors place increased importance on proof of a
software vendor's financial viability. Given this, Mercent's strong balance
sheet and profitability are significant differentiating factors among
vendors in the category. We look forward to their continued progress."
"As Mercent continues to grow, we remain singularly focused on our
customers' online sales and marketing performance. To this end, we are
committing further investment towards developing our proprietary technology
platform and expanding our professional services capabilities," added Best.
"This investment will ensure Mercent maintains its market leadership
position and continues to increase company profits and free cash flow in
FY2010 and beyond."
About Mercent
Mercent is a leading provider of online channel marketing technology and
services for retailers. Through its award-winning Mercent Retail™ SAAS
technology and Mercent Performance™ professional services, Mercent helps
the world's most successful online merchants including 1-800-Flowers, Bass
Pro Shops, Brookstone, GUESS?, L'Occitane USA, Redcats Group, and REI
optimize online shopping channel marketing campaigns to drive customer
acquisition, revenues, profits, and inventory velocity. Mercent is the
single point of integration with a vast online advertising network that
includes transactional marketplaces such as Amazon.com and eBay; comparison
shopping engines (CSEs) such as Shopping.com and NextTag; affiliate
marketing programs such as LinkShare and the Google Affiliate Network; and
other product advertising channels including Microsoft Bing Cashback and
Google Product Listing Ads (PLA). The company is a 'Selling on Amazon.com'
Certified System Integrator, Buy.com Gold Certified Partner, eBay Certified
Provider and certified Google Product Search Partner. Founded by a seasoned
team of Amazon.com veterans, Mercent is a venture-funded company based in
Seattle, WA. For more information, visit www.mercent.com.
Forward Looking Statements:
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The statements contained in this document include certain predictions
and projections that may be considered forward-looking statements under
securities law. These statements involve a number of important risks and
uncertainties that could cause actual results to differ materially
including, but not limited to, the performance of joint venture partners,
as well as other economic, competitive and technological factors involving
the Company's operations, markets, services, products, and prices. With
respect to Mercent, except for the historical information contained herein,
the matters discussed in this document are forward-looking statements
involving risks and uncertainties that could cause actual results to differ
materially from those in such forward-looking statements.
Contact Information: Mercent PR Contact: Kristine Szarkowitz Tel: 206. 310.5323