Key stats from Greenfield Online (SRVY)'s 4Q04 results and guidance (beats and raises, stock up)

| About: Greenfield Online (SRVY)
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Greenfield Online (ticker: SRVY), a provider of Internet-based marketing surveys, announced Q4 results and guidance. Revenue and "adjusted EBITDA" slightly beat analyst estimates. Details and two quick comments:


Q4 Results

  • Net revenue was $13.6 million, up 64% year over year, and slightly above consensus of $13.5 million.
  • Adjusted EBITDA of $3.4 million beat consensus of $3.2 million, and compares to $1.4 million a year earlier.
  • Gross margin 74% was up from 66% a year earlier.
  • Gross profit of $10.0 million was up 83% year over year.
  • Operating income was $2.5 million, up  from $0.6 million a year earlier.
  • Net income was $2.4 million versus $0.4 million a year earlier.
  • Sales bookings, defined as new signed contracts for online survey work, were $14.6 million, up 55% year over year and 18% sequentially.
  • Bid volume, defined as the total value of online survey projects submitted for bid by clients, was $83 million, up 70% year over year and 8% sequentially.
  • First-quarter backlog, defined as signed contracts for online survey projects to be completed and delivered to clients during the three months ending March 31, 2005, was $11.0 million as of February 9.

Q1 Guidance

  • Revenue of $15.7-$16.0 million, 83-86% higher than 1Q '04.
  • Operating income of $2.7-$2.9 million compared to $0.4 million a year earlier.
  • Adjusted EBITDA of $3.8-$4.0 million compared to $1.3 million a year earlier.
  • Fully taxed net income (40% rate) of $1.8-$1.9 million, versus $0.2 million in 1Q '04.

Year 2005 Guidance

  • Revenues of $82-$85 million.
  • Operating margins of 24%.

Quick comments:

  • This business has fabulous visility and margins - an unusual combination. Very predictable, very profitable.
  • Good call Derek Brown!