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Author: rolv Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 231  
Subject: Re: (.15) Date: 10/28/1999 5:15 PM
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XOOM.com Reports Third Quarter 1999 Financial Results

PR Newswire, Thursday, October 28, 1999 at 16:24

Revenues for Quarter Grew 37 Percent Over Second Quarter 1999

    SAN FRANCISCO, Oct. 28 /PRNewswire/ -- XOOM.com, Inc. (NASDAQ:XMCM), a
leading Internet-based direct e-commerce company, today reported revenues
totaling $9.0 million for the third quarter ended September 30, 1999, an
increase of 37 percent over revenues of $6.5 million in the second quarter of
1999.  Third quarter 1999 revenues represent an increase of 289 percent over
revenues of approximately $2.3 million reported in the same period of the
previous year.
    XOOM.com reported a third quarter pro forma net loss of $3.0 million or
$0.15 per share.  This compares to a pro forma net loss of $2.7 million or
$0.16 per share for the second quarter of 1999 and a pro forma net loss of
$2.2 million or $0.25 per share reported in the same period of the previous
year.  Pro forma net loss excludes the effects of acquisition-related
amortization of intangible assets and purchased in-process research and
development charges.
    Net loss including the effects of acquisition-related amortization of
intangibles and purchased in-process research and development charges for the
third quarter ended September 30, 1999 was $8.6 million or $0.44 per share.
This compares to a net loss of $6.7 million or $0.40 per share for the second
quarter of 1999 and a net loss of $3.1 million or $0.35 per share reported in
the same period of the previous year.
    "During the third quarter we had several key accomplishments that we think
will have a significant impact on NBC Internet following our proposed merger,"
said Chris Kitze, Chairman of XOOM.com.  "Among other things, Jack Welch was
named to NBCi's Board; we acquired a company that will provide us with a
powerful online shopping service; and we unveiled a major cable TV, Internet
shopping and e-commerce initiative with ValueVision International and
Snap.com.  We are now focused on closing the merger to form NBC Internet so
that we can begin operating as a new company."
    Both e-commerce revenue and advertising revenue showed strong gains in the
third quarter.  The company's revenue growth was accompanied by the continued
positive growth of its membership base, which ended the third quarter at
10.3 million, up from 8.7 million members at the end of the second quarter and
up from 3.6 million members reported on September 30, 1998.
    "To put our revenue growth in perspective, our year-to-date revenues
through the third quarter last year were $4.9 million," said John Harbottle,
Chief Financial Officer of XOOM.com.  "This year we're at $19.9 million
through the third quarter, which marks a significant 309 percent increase."
    XOOM.com is slated to be merged with several NBC Internet assets and
Snap.com, Inc., one of the fastest-growing major Internet portal, to form one
of the first publicly traded Internet companies combining these services in a
strategic relationship with a major broadcast television network.  The new
company, to be called NBC Internet (NBCi), will use Snap.com as its umbrella
consumer brand, integrating broadcast, portal and e-commerce services.

    Third Quarter 1999 Highlights
    -- Announced nine designees to the NBCi Board, including John F. Welch,
Chairman and CEO of General Electric.
    -- Made two company acquisitions.  The first, LiquidMarket, will enable an
easy and fast way for consumers to shop for the products they want at prices
that are among the lowest on the Web.  The second, Private One, will allow
XOOM.com to add enhanced security to its email offerings.
    -- Entered into a lease agreement for over 186,000 square feet of office
space in the heart of San Francisco's financial district.  The historical
building at 225 Bush Street, formerly the Standard Oil Building, will be
renamed The NBC Internet Building and will provide an ideal location for the
headquarters of the new company, which is expected to have approximately
550 employees at its inception.
    -- Unveiled SnapTV, a major cable TV, Internet shopping and e-commerce
initiative between the proposed NBC Internet and ValueVision International.
ValueVision's home shopping cable television network will be re-branded SnapTV
and a companion SnapTV.com Internet shopping service will be launched together
with a wide-ranging direct e-commerce strategy.

    About XOOM.com, Inc.
    XOOM.com, Inc. (www.xoom.com) offers consumers high-quality, free services
over the Web, including homepage building, chat rooms, message boards, HTML
email, online greeting cards, a Web page counter, clip art and downloadable
software.  XOOM.com has pioneered direct e-commerce on the Internet by
targeting its members with product and service offers relevant to their needs
and interests.  To date, the company has attracted more than 10.7 million
members.  XOOM.com, which was founded in September 1996, is headquartered in
San Francisco and has offices in New York City, Los Angeles and Paris, France.
    NOTE:  "XOOM," "XOOM.com" and the "X-in-circle" logo are trademarks of
XOOM.com, which may be registered in certain jurisdictions.
    This press release contains statements that are forward-looking.  These
statements are based on the Company's expectations of its future results as of
the date of this press release.  Actual results may differ materially from
those projected because of a number of risks and uncertainties, including
those listed from time to time in XOOM.com's SEC reports, including but not
limited to the Company's Annual Report on Form 10-K for the year ended
December 31, 1998; the Company's Quarterly Report on Form 10-Q for the period
ended June 30, 1999; and the registration statement on form S-4 filed by NBC
Internet, Inc.  Important factors that could cause the results to differ
materially from those in any such forward-looking statements include:
XOOM.com's limited operating history; unpredictability of its
quarter-to-quarter results; its unproven business model and dependence on
members; risks associated with its international operations; its reliance on a
network infrastructure; its dependence on vendors and suppliers; management of
its growth and expansion; risks associated with brand development; its
reliance on advertising revenue; intense competition with other Web
communities and businesses; the risks of infringement of intellectual property
rights; risks associated with acquisitions; and reliance on strategic
relationships.


                                XOOM.com, Inc.
        Pro Forma Condensed Consolidated Statements of Operations (i)
                                 (Unaudited)
                   (In thousands, except per share amounts)

                                       Three Months Ended   Nine Months Ended
                                          September 30        September 30,
                                         1999       1998      1999      1998

    Net revenue:
     E-commerce                        $4,324     $1,532    $10,256   $3,366
     Advertising                        4,552        598      9,527      953
     License fees and other                80        170        120      546
    Total net revenue                   8,956      2,300     19,903    4,865

    Cost of net revenue                 2,921      1,074      7,645    2,000

    Gross profit                        6,035      1,226     12,258    2,865

    Operating expenses:
     Operating and development          3,008      1,209      5,709    2,558
     Sales and marketing                5,969        853     13,507    1,570
     General and administrative         3,180      1,059      6,846    2,158
     Amortization of deferred
      compensation                         90        304        494    1,111
    Total operating expenses           12,247      3,425     26,556    7,397
    Loss from operations              (6,212)    (2,199)   (14,298)  (4,532)

    Other income (expense):
     Interest income                    3,205         37      6,213       37
     Interest expense                    (25)       (20)       (90)     (20)

    Pro forma net loss               $(3,032)   $(2,182)   $(8,175) $(4,515)

    Pro forma net loss per share
     - basic and diluted              $(0.15)    $(0.25)    $(0.49)  $(0.63)

    Number of shares used in
     pro forma per share calcuation
      - basic and diluted              19,655      8,710     16,780    7,172

    (i) This pro forma statement of operations information for the three and
nine months ended September 30, 1999 and 1998 is for illustrative purposes
only and is not prepared in accordance with generally accepted accounting
principles.  It shows the operating results of the Company, excluding
acquisition-related amortization of intangible assets and purchased in-process
research and development charges of $5.5 million and $10.4 million for the
three and nine month periods ended September 30, 1999, respectively, and
$0.9 million and $1.9 million for the three and nine month periods ended
September 30, 1998, respectively.


                                  XOOM.com, Inc.
               GAAP Condensed Consolidated Statements of Operations
                                   (Unaudited)
                     (In thousands, except per share amounts)

                                     Three Months Ended    Nine Months Ended
                                       September 30           September 30,
                                      1999       1998      1999         1998

    Net revenue:
     E-commerce                     $4,324      $1,532    $10,256     $3,366
     Advertising                     4,552         598      9,527        953
     License fees and other             80         170        120        546
    Total net revenue                8,956       2,300     19,903      4,865

    Cost of net revenue              2,921       1,074      7,645      2,000

    Gross profit                     6,035       1,226     12,258      2,865

    Operating expenses:
     Operating and development       3,008       1,209      5,709      2,558
     Sales and marketing             5,969         853     13,507      1,570
     General and administrative      3,180       1,059      6,846      2,158
     Amortization of deferred
      compensation                      90         304        494      1,111
     Purchased in-process
      research & development            --         130      2,603        790
     Amortization of intangible
      assets                         5,532         741      7,836      1,087
    Total operating expenses        17,779       4,296     36,995      9,274
    Loss from operations          (11,744)     (3,070)   (24,737)    (6,409)

    Other income (expense):
     Interest income                 3,205          37      6,213         37
     Interest expense                 (25)        (20)       (90)       (20)

    Net loss                      $(8,564)    $(3,053)  $(18,614)   $(6,392)

    Net loss per share
     - basic and diluted           $(0.44)     $(0.35)    $(1.11)   $ (0.89)

    Number of shares used
     in per share calcuation
      - basic and diluted           19,655       8,710     16,780      7,172


                                  XOOM.com, Inc.
                    Condensed Consolidated Balance Sheets
                                (In thousands)

                                                   September 30,  December 31,
                                                        1999          1998
    ASSETS                                          (unaudited)
    Current assets:
     Cash, cash equivalents & marketable securities   $198,925      $56,575
     Accounts receivable, net                            4,032        1,368
     Inventories                                           518          322
     Other current assets                                3,747          308
    Total current assets                               207,222       58,573
    Fixed assets, net                                    7,643        2,071
    Intangibles, net                                    95,537        5,517
    Marketable securities and restricted cash
     of $4,500                                          62,937           --
    Other assets                                        15,733          713

    Total assets                                      $389,072      $66,874

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
     Accounts payable and other accrued liabilities    $10,301       $4,294
     Notes payable, current portion                        241        1,276
     Deferred revenue                                    2,409          443
    Total current liabilities                           12,951        6,013

    Long-term liabilities                                2,836          528

    Stockholders' equity:
     Common stock                                      406,675       75,606
     Deferred compensation                               (410)        (904)
     Accumulated deficit                              (32,980)     (14,369)
    Total stockholders' equity                         373,285       60,333

    Total liabilities and stockholders' equity        $389,072      $66,874

SOURCE  XOOM.com, Inc.
    -0-                             10/28/1999
    /CONTACT:  investors, Roger Maes of XOOM.com, Inc., 415-288-2568, or
roger@xoom.com/
    /Company News On-Call:  http://www.prnewswire.com/comp/139295.html or fax,
800-758-5804, ext. 139295/
    /Web site:  http://www.xoom.com/
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