Communicate.com discloses record revenues
Domain name and e-commerce firm Communicate.com (OTCBB: CMNN.ob) disclosed record revenues for fiscal year 2005.
Communicate.com, owner of premium domain names counting Perfume.com, Body.com, Brazil.com, and Boxing.com, disclosed record revenues for its 2005 fiscal year.
The firm’s revenue grew to almost $5.8M from $3.5M in the prior year. Revenue from advertising and parked domains increased regarding and approached $1M. eCommerce sales, such as those on its Perfume.com site, increased to nearly $4.8M from just shy of $2M the year prior. The firm did not sell any domains in 2005. Instead, it was a net buyer, picking up 650 dot-com domains. This is a common theme among domain name firms. Instead of unloading domains, they are mostly in buy mode.
David Jeffs, President of Communicate.com, stated, “In 2005, eTail became our prime focus and by far our largest revenue stream, increasing 144% over 2004, allowing us to strategically eliminate our reliance on domain name sales. The fourth quarter, which was the best sales quarter in firm history, accounted for approximately 47% of revenues. We remained profitable even as we expanded our workforce and invested significantly more towards marketing and client buyout. The result is an eTail firm primed to move to the next level.”
Fiscal 2006 Outlook:
“We project revenues between $8.5 million and $10 million, fueled by growth at our eTail properties, and expect to be at least marginally profitable this year. As a result of the proliferation of online retail shopping during the gift-giving holiday season, we anticipate that approximately 45% of our revenues will come in the fourth quarter. Perfume.com, which has emerged as a leading online fragrance retailer, will account for the majority of revenues this year, while Body.com, recently ‘soft-launched’ as a health and vanity eTailer, ought to start to generate meaningful revenues in the second half of the year.”
Looking beyond 2006, Jeffs added, “We aim to develop Communicate into a $50 million, profitable, eTail-driven firm within three to four years.”
$50M is an aggressive control, but CMNN’s track record makes this goal seem reasonable.
