Netcentives sees losses grow faster than revenue

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Despite San Francisco-based Netcentives' announcement Feb. 6 of a fivefold increase in 2000 revenue to $42.8 million, over $7.8 million in 1999, the online loyalty and direct marketing company recorded net losses of $184.7 million for the year, vs. a $46.8 million 1999 loss. Fourth-quarter losses were $84.5 million on $17.4 million in revenue; Netcentives lost $44.3 million on revenue of $11.9 million in the third quarter. In a call to investors after close of market Feb. 6, CEO West Shell III reiterated the company's previous guidance, forecasting postive cash flow from operations for fourth-quarter 2001. He said in the coming year the company plans to continue to build out its management team, invest in its technology platform and look to add new clients in five key segments: retail, media, financial services, travel and corporate incentives. Netcentives stock closed at $4.81 on Tuesday before the company's call to investors, down from its 52-week high of $76.

Copyright February 2001, Crain Communications Inc.

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