Nasdaq: MKTW 2001 Annual Report

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Nasdaq: MKTW 2001 Annual Report Nasdaq: MKTW 2001 Annual Report THE SKY’S THE LIMIT Investors, clients, Inside Web sites turn to MarketWatch for leadership BY DAVID CALLAWAY EXECUTIVE EDITOR New face: Q&A session with For MarketWatch.com, diversity never President and COO Kathy Yates. Page 9 mattered so much as in 2001. Just as the company’s multi-pronged me- dia strategy of Internet, television and radio helped it stand out in covering the year’s top story, the Sept. 11 terrorist attacks, its diver- sified revenue stream helped it through the worst media recession in memory. Drawing on the strength of its licensing operation, the creativity of its advertising unit and a major cost-cutting campaign, MarketWatch.com was able to not only adapt to the advertising Promise shakeout, but to improve. kept It even managed to keep Nationwide: TV show and radio Company a year-old promise to be reports add dozens of stations. Page 10 reports cash-flow positive by the its first fourth quarter of 2001, fin- cash-flow ishing December with $1.3 positive million more than it had at quarter. the end of September. Page 4 Licensing, the pillar of strength during the reces- sion’s darkest hours, came through the year with higher-than-expected revenue, helping offset a decline in advertising revenue. Sticking to its tried-and-true strategy of combining ever-improved products with top service, the licensing operation landed sev- eral big-name clients, including The New Back by the Bay: Thom York Times Digital, PaineWebber Online Calandra returns to San Francisco. Page 8 Services, USAToday.com and The Motley Fool. In advertising, the decline in traditional Plus: online brokerage clients and Internet clients Letter from CEO Larry Kramer Page 2 was met with a full-thrust creative cam- Advertising Sales Page 3 Licensing Sales Page 5 Continued on Page 6 Destination Sites Page 7 2 MKTW LETTER FROM THE CEO MARKETWATCH.COM Board of Directors Larry Kramer Positive end to a memorable year Chairman and Chief Executive Officer MarketWatch.com, Inc. It’s fair to say that 2001 was a historic - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - year for the stock markets, the Internet, and Peter Glusker3 MarketWatch.com. Senior Vice President, In the fourth quarter of 2001, Market- Viacom Interactive Ventures Watch.com made history with our first posi- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Christie Hefner1 tive cash flow, ending the quarter with $37.6 Chairman and Chief Executive Officer million, $1.3 million more cash than we had Playboy Enterprises, Inc. at the start of the quarter. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - We were hit with the worst advertising Barry Herstein environment in a decade and saw our adver- Senior Vice President and Chief Marketing Officer Financial Times Group tising revenues drop from $35 million in - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2000 to $18 million in 2001. We were able Andrew Heyward2 to offset much of that loss, however, with President the growth of our licensing revenue from CBS News $16 million in 2000 to $25 million in 2001. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I’m proudest of our many editorial Stephen Hill2 Chief Executive Officer achievements during 2001. We have begun Financial Times Group to regularly produce popular in-depth sto- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ries and packages around major news events Robert Lessin and deep profiles of companies. Our Per- Chairman sonal Finance section and offerings have ex- SoundView Ventures - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - panded to serve the growing numbers of John Makinson users who are looking for ways to protect Chairman and CEO Larry Kramer Finance Director and grow their nest eggs. Pearson plc Seeing the economy deteriorate early in Watch.com home page. clients during the year included interactive - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - the year, we immediately took action to con- • In June, we became one of 13 founding Java charting, a much more dynamic tool Dan Mason tain costs. Through tight management of members of the Online Publishers Associa- than our HTML charts, and international President Infinity Radio Group costs all year, and a round of layoffs in May, tion (OPA), an industry trade group formed charting products that cover markets in 16 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - we were able to cut almost $18 million in to promote common interests on a variety of countries. We announced several major me- Jonathan May1,3 operating costs from 2000 to 2001. Despite fronts, including online advertising and in- dia licensing partnerships during the year Senior Vice President our revenue drop, we were able to reduce tellectual-property rights. including The New York Times Digital in Triarc Companies, Inc. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - our net loss by $15 million and become • The “CBS MarketWatch Weekend” tel- June, The Motley Fool in July and Russell I. Pillar cash-flow positive in the fourth quarter, a evision show continued its national growth USAToday.com in December. President and Chief Executive Officer goal established at the beginning of 2001. throughout the year, airing weekly on sta- I’m extremely happy to report the addi- Viacom Interactive Ventures There were several highlights in 2001 tions capable of reaching 85 percent of the tion of Kathy Yates as our president and - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - worth looking back on: United States by Dec. 31, 2001. COO in December. She is an experienced Jeffrey F. Rayport1,2 • Throughout the year, the company es- • The MarketWatch.com Radio Network media and Internet executive, and her ar- Chief Executive Officer Marketspace LLC (a Monitor Group company) tablished itself as an online advertising in- surpassed the 200-station milestone nation- rival has already helped to enhance our pro- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - dustry innovator. In March, we began sell- wide in less than three years. The network cedures for planning and growth. Giles Spackman3 ing advertising in day-parts, with Budweiser had grown to 208 stations covering 88 per- Now that we are on firmer financial foot- Finance Director as an initial client. In July, we announced cent of the U.S. by Dec. 31, 2001. ing, we look forward to building our compa- Financial Times Group - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - that we would de-emphasize the click- • In March, we launched the redesigned ny in 2002. We are prepared to weather dif- 1 Member, Audit Committee through rate as a metric, causing healthy in- flagship CBS MarketWatch.com Web site ficult economic times, and at the same time, 2 Member, Compensation Committee 3 Member, Mergers & Acquisitions Committee dustry debate regarding the measurement of with expanded content, more tools and new well-situated to take advantage of the upturn online advertising campaigns. In August, we advertising formats. Additional product when it comes. Corporate Management debuted TV commercials on CBS Market- launches during the year included the pre- Thanks for your support. Watch.com with American Airlines’ ads air- mium content “Market Advisers” section Larry Kramer ing on the Web site before they hit television and a state-of-the-art “Alerts” product that Chairman and Chief Executive Officer screens. In November, we rolled out the “In- allows users to sign up for instant e-mail - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - troductory Message,” a brief sponsorship messages tied to market-related events. Kathy Yates page that launches before the CBS Market- • New tools developed for licensing President and Chief Operating Officer - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Joan P. Platt Stockholder information Chief Financial Officer and Secretary - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Legal counsel Transfer agent Form 10-K Investor relations William Bishop Morrison & Foerster LLP Mellon Investor Services LLC Stockholders of record will receive MarketWatch.com, Inc. Executive Vice President and General Manager 425 Market Street 85 Challenger Road a copy of MarketWatch.com’s Form 825 Battery Street - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - San Francisco, Calif. 94105 Ridgefield Park, N.J. 07660 10-K, filed with the Securities and San Francisco, Calif. 94111 Scot McLernon Exchange Commission, which contains 415-733-0500 Office locations additional information relating to the [email protected] Executive Vice President Independent San Francisco Minneapolis company, along with the Proxy of Advertising Sales and Marketing accountants - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - New York Washington Statement prepared in connection with Exchange Scott L. Kinney PricewaterhouseCoopers LLP Los Angeles Chicago the 2002 Annual Meeting. Additionally, MarketWatch.com, Inc. is traded 333 Market Street Boston Dallas a copy of the Form 10-K is available on the Nasdaq/National Market Executive Vice President of Licensing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - San Francisco, Calif. 94105 London Tokyo without charge. System under the symbol “MKTW.” Jamie Thingelstad This Annual Report contains forward-looking statements that involve risks and uncertainties. Actual results may differ
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