October 28, 2003
NEXTAG RECORDS EIGHTH-CONSECUTIVE QUARTER OF PROFITABILITY AND POSITIVE CASH FLOW
The Company Becomes the Fastest Growing Comparison Shopping Site by Expanding Its Category Coverage to Include All Types of Retail Products
SAN MATEO, CA (Oct. 28, 2003)
NexTag, a leading comparison shopping service, today announced it has recorded its eighth consecutive quarter of profitability and positive cash flow for the three-month period ending September 30, 2003.
The company's strong performance is reflected by an increase in site traffic of 23 percent between the second and third quarter of 2003, with an average of 4.4 million unique shoppers using the service in September. This represents an increase of 89 percent compared to the same period last year. (1)
Much of the company's recent growth can be attributed its successful expansion into a host of new product categories at the beginning of this year, while continuing to grow its initial base in technology and consumer electronics. Customers who previously relied on NexTag to comparison shop for computer accessories and digital cameras are now using the site to find everything from cosmetics and sportswear, to bed linens, music CDs and baby strollers.
Since launching the new product categories in January, the number of shoppers using the site has growth by more than 53 percent, making NexTag the fastest growing independent comparison-shopping service on the Internet. (1)
"This has been an extremely good year for us in every aspect of our business," said Purnendu Ojha, CEO and co-founder of NexTag. "Not only have we managed to expand our operations at a very healthy rate and grow at a faster pace than the competition, we have done so while continuing to generate positive cash flow for the company."
Along with the increased consumer interest, NexTag's growth has started to attract a lot attention among Internet retailers as well. Since the beginning of the year, the company has increased the number of merchants listing their products in NexTag's database by over 300 percent. In addition to retail titans Wal-Mart, Target and Sears, the company has been successful at attracting specialty retailers such as L.L.Bean, The Sharper Image, The Gap, Hickory Farms and Bare Necessities.
Even with the company's aggressive expansion into more product categories, NexTag continues to thrive in the consumer electronics category where it got its start, sending thousands of highly qualified sales leads to major retailers like CDW and HP every day. "Technology-related products still generate a significant portion of our revenues and will always be an integral part of our product mix," said Ojha.
"Comparison shopping is finally starting to get some serious attention as consumers are becoming more sophisticated in the ways they shop," said Rob Leathern, director and senior analyst of commerce analytics at Nielsen//NetRatings. "More that 21 million Americans used a comparison shopping service in August of this year and many more consumers are likely to rely on these services during the upcoming holidays." (1)
NexTag's growth is also generating recognition elsewhere. Earlier this month, NexTag was ranked seventh on the Deloitte 2003 Technology Fast 500 Rising Star List, an annual ranking of the fastest growing technology companies in North America. The company's three-year average revenue growth of 3,233 percent also earn it recognition as the fastest growing private company in the Bay Area by the San Francisco Business Times in the 2003 Fast 100 Awards.
NexTag, The Search Engine for Shoppers (SM), is the fastest way to compare prices online. NexTag's unique technology, including fast and relevant product search results, TruePrice and product price histories, enables shoppers to quickly compare prices of millions of products from thousands of online stores. NexTag's highly qualified traffic and performance-based pricing makes it a highly efficient sales channel for retailers, manufacturers and individuals. The company is privately held and based in San Mateo, California. For more information, go to http://www.nextag.com.
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