Hoover's Inc. reported that total sales for the second quarter ended September 30, 1999, rose 86% to $3.8 million, while the company's net loss increased to $3.3 million from $0.9 million in the same period in fiscal 1999.
A 476% jump in advertising, sponsorships and e-commerce revenues to slightly more than $1 million led the sales gain, while online information sales increased 64% to $2.6 million. Sales of printed materials and CD-ROMs fell 45.5% to $158,000, due to Hoover's success in encouraging customers to access information through its Web site rather than buying CD-ROMs or books.
A number of factors contributed to Hoover's higher loss, including costs associated with the redesign and launch of its Web site, Hoover's Online: The Business Network (www.hoovers. com). During the quarter, Hoover's also began a $10-million national brand-building advertising campaign to support the new site. The campaign includes ads on CBS, CNBC, ESPN, MSNBC and CNN, while print ads have appeared in such publications as Fortune, Wired, Business Week, the New York Times and the Wall Street Journal.
For the six-month period ended September 30, revenues rose 79.5% to $7 million, and the net loss increased to $5.1 million from $1.6 million.
