EDGAR Online Reports Year 2000 Revenue Grew 106%; Contracts with Large Data Users Generate 68% of Fourth Quarter Revenue

Business Wire, Feb 1, 2001

Business Editors

SOUTH NORWALK, CT--(BUSINESS WIRE)--February 1, 2001

EDGAR(R) Online(R), Inc (NASDAQ: EDGR), a global Web-based provider of business, financial and competitive information derived from U.S. Securities and Exchange Commission data and developer of Internet-based financial and business systems solutions, today reported its financial results for the fourth quarter and year ended December 31, 2000.

For the quarter ended December 31, 2000, EDGAR Online reported record revenue of $3.4 million, an increase of 88% compared to the same period last year and an increase of 66% compared to the previous quarter. The fourth quarter EBITDA net loss (operating loss before interest, depreciation, amortization, and non-cash write down of intangible assets) was $1.2 million, or $(0.09) per share, compared to an EBITDA net loss of $1.6 million, or $(0.13) per share, for the same quarter last year and an EBITDA net loss of $1.4 million, or $(0.12) per share, in the previous quarter. The fourth quarter net loss, which included the effect of a $6.5 million non-cash write down of intangible assets primarily related to the FreeEDGAR acquisition in 1999, was $8.6 million, or $(0.61) per share, of which $(0.46) per share related to the intangible write down. Financial Insight Systems, Inc., which the Company acquired effective November 1, 2000, contributed $0.01 per share.

EDGAR Online's corporate data sales and customized ASP services reported fourth quarter revenue growth of 337% from the year-ago period; individual subscriptions improved 27% from the fourth quarter of 1999; and net advertising revenue decreased 28% from a year ago. The Company's sales contracts for customized data and applications software services to corporations accounted for 68% of total revenue in the fourth quarter of 2000 compared to 29% in 1999.

Revenue for the year ended December 31, 2000 grew to a record $9.7 million, an increase of 106% compared to $4.7 million in the same period a year earlier. The EBITDA net loss for the year ended December 31, 2000 was $6.5 million, or $(0.51) per share, compared to an EBITDA net loss of $4.0 million, or $(0.41) per share, a year earlier. Net loss, which included the effect of a $6.5 million non-cash write down of intangible assets primarily related to the FreeEDGAR acquisition in 1999, was $15.2 million, or $(1.18) per share, of which $(0.51) per share related to the intangible write down.

Commenting on the quarter's results, Tom Vos, EDGAR Online's President said, "We are pleased with our revenue growth and the improvement in operating cash flow over previous quarters. Last year was difficult for many companies in our sector. However, our management team successfully completed our transition from being largely dependent on revenue generated by public web sites, to a company that generates approximately 2/3 of its revenue from contract sales of data and software applications services to large data users. Having achieved this transition, we are now focusing our attention on ways to generate more revenue from the two million people who use our web sites monthly, while at the same time pursuing the large data and service contracts we have shown we can sign."

"We remain cautious about the economic environment in the year ahead", said Vos. "But we believe that the revenue, cash flow and EPS results we achieve this year that will demonstrate to customers, investors and employees that EDGAR Online is a vibrant, self-sustaining company."

KEY METRICS

-- Over 110 significant corporate clients, compared to 47 one year ago.

-- Over 74 million advertising impressions in the quarter, compared to 62
million one year ago.

-- Over 575,000 registered users, compared to 275,000 one year ago.

-- Over 16,000 individual paying subscribers, compared to 13,000 one year ago.

2000 HIGHLIGHTS

-- Acquired Financial Insight Systems, a privately held company that

sells EDGAR derived data and customized ASP system solutions to

large financial institutions, such as the NASDAQ.

-- Signed America Online, Inc. (NYSE:AOL) contract, replacing

Disclosure, Inc. as the supplier of SEC and IPO content to AOL.

Three-year financial content agreement makes EDGAR Online services

available to the 23 million users of AOL's Personal Finance

Channel.

-- Signed contract to supply Dun & Bradstreet with customized

financial and executive compensation information for use on Dun &

Bradstreet's "D&B Million Dollar Directory" on the Internet.

-- Signed contract with OneSource Information Services, Inc. to

provide customized information for its Business Browser product

line.

-- Established the first public repository for company financial

statements in XBRL format. XBRL (Extensible Business Reporting

Language) is expected to become the standard way in which U.S.

public companies will prepare, report and disseminate their

financial information.

-- Introduced three e-mail newsletters to improve communication with

our users and to stimulate additional use of our web sites.

-- Launched FD Express, a Web site addressing the SEC's new Fair