SOURCE: Mercent

Mercent

February 02, 2010 09:03 ET

Mercent Announces 87% FY2009 GAAP Revenue Growth; 50% Increase in Retailer Customer Count; Continued GAAP Profitability

SEATTLE, WA--(Marketwire - February 2, 2010) - Mercent™, a leading provider of on-demand marketing solutions for retailers, today announced FY2009 financial results with record consolidated revenues up 87% over FY2008. The company also announced 50% growth in enterprise retailer customer count in FY2009 and GAAP profitability.

"We are pleased to announce record revenues for the fourth consecutive year, driven by an expanding retailer client base, Mercent's proven and award-winning SAAS technology, and the growing consumer market reach of Mercent's online advertising programs," commented Eric Best, Mercent CEO. "Mercent continues to deliver exceptional customer and company performance, and we expect to significantly accelerate our market leadership position and scale in 2010. We remain steadfastly focused on ensuring our clients' success while driving continued revenue and profitability growth through the coming year."

Operating Highlights

During a significant economic downturn Mercent has delivered consistent and positive business performance. Highlights include:

-- 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
    Email Contact
    Tel: 206. 310.5323