InfoUSA Reports $73.9M in First-Quarter Revenue
The first quarter ended on March 31.
"The fact that we achieved these results during the most severe U.S. economic slowdown in a decade is extremely encouraging," said Vin Gupta, chairman/CEO of infoUSA, Omaha, NE. "We closed several deals with new customers in all of our divisions. This is significant in that we signed new business at a time when many of our customers and prospects were curtailing or postponing orders due to the weakened economy."
One area that saw growth was infoUSA's Small Business Group, which reported revenue of $30.9 million for first quarter 2001, compared with $29.2 million for fourth quarter 2000 and $33.2 million for first quarter 2000.
Last year's revenue included a $1 million nonrecurring sale of consumer data to the U.S. Census Bureau for the 2000 census.
The Small Business Group experienced double-digit revenue growth and increased profitability during first quarter 2001 from several of its vertical market groups. These included the Middle Market, Library, infoCanada and American Church List divisions.
In addition, revenue for the group's Internet divisions -- ListBazaar.com and businessCreditUSA.com -- increased sharply, and both sites were highly profitable. Field sales offices, which provide consultative sales solutions to small businesses, increased revenue by 15 percent to $3.1 million, and the company believes this market has continued high growth potential.
The Large Customer Group, on the other hand, reported first-quarter 2001 revenue of $27.3 million, compared with $27.6 million for fourth quarter 2000 and $29.9 million for the year-ago first quarter.
Despite softer customer demand resulting from the economic downturn and the adverse impact on its customers from the postal rate increase, the group has been able to increase its profitability. This is because of changes in its business mix, including the addition of new customers in the financial, telecommunications and direct marketing industry that purchased higher-margin core content and processing services.
The group also benefited from cost containment programs implemented during the past two quarters.