Online Content Drives Hoover's Sales
-- Publishers Weekly, 8/30/1999
Hoover's Inc., which raised $42 million in a public offering in July (News, Aug. 2), reported a 70% sales increase to $3.2 million for the first period, ended June 30, 1999. Online information sales rose 82% in the quarter, while advertising, sponsorships and e-commerce revenues increased 174%, the company reported. Sales of print and CD-ROM products were lower due to a reduced emphasis. Despite the sales gain, the company's loss for the period increased to $1.8 million, compared to $700,000 in last year's first quarter. The higher loss was due to increased spending in sales and marketing as well as product development.
Among the initiatives launched in the past quarter was an agreement with NBC under which Hoover's will license some of its company information to CNBC.com, NBC's financial portal. Hoover's will also coproduce exclusive editorial content intended for use both online at CNBC.com and on-air on CNBC. NBC has acquired a minority stake in Hoover's as well. In a new alliance with Microsoft, Hoover's Company Capsules will be included as part of the free content provided by Microsoft's MSN Money Central Investor.
In a number of personnel changes, Elisabeth DeMarse joined the company as executive v-p of content, strategy and acquisitions. DeMarse had been at Bloomberg Financial Markets. Hoover's also appointed Jani Spede v-p of advertising and e-commerce, and promoted William Cargill to v-p of marketing.
