Bankrate's business model has enabled it to become the Internet's
leading consumer banking marketplace. Bankrate, Inc. operates Bankrate.com,
one of the most visited destinations on the Web. The site connects more
than 4,800 financial institutions with more than 4 million individuals
each month who are seeking objective information that will enable them
to make critical personal finance decisions.
 Bankrate.com
provides in-depth information on mortgages, credit cards, new and used
auto loans, money market accounts and CDs, checking and ATM fees, home
equity loans and online banking fees.
Revenue is generated through online publishing, hyperlinks
(advertisements which facilitate transactions between buyers and sellers),
print publishing and licensing. More than 450 financial institutions advertise
on Bankrate.com. The majority of advertisers are traditional banking institutions
that recognize the value that Bankrate offers in reaching new customers
via the Internet.
With connections to more than 80 online partners, including
Yahoo!, America Online, MSN, The Wall Street Journal Online and The New
York Times Online, Bankrate.com has become the preferred channel of distribution
for consumer banks on the Internet.
The Company's information is also distributed through more
than 100 newspapers, including eight of the nation's top 10. Customers
include The Wall Street Journal, The New York Times, USA Today, and numerous
other national and regional publications.
| RECENT
FINANCIAL PERFORMANCE |
For the first quarter ended March 31, 2003, Bankrate, Inc. reported its
sixth consecutive profitable quarter as a result of increased advertiser
demand and traffic patterns. Net income rose to a record $2.0 million,
or $0.13 per share on a diluted basis, from $690,000, or $0.05 per share
on a diluted basis, excluding the non-cash gain on early extinguishment
of debt of $2.0 million in the quarter ended March 31, 2002. (Net income
for the quarter ended March 31, 2002 was $2.7 million or $0.19 per share
on a diluted basis). Total revenue for the first quarter rose 52% to a
record $8.5 million from $5.6 million in the first quarter of 2002. These
results reflect Bankrate's ability to generate strong top and bottom line
growth on a stable fixed expense base.
For the eighth consecutive quarter, the Company generated
cash from operations. Cash increased $1.8 million from $11.0 million at
December 31, 2002 to $12.8 million at March 31, 2003, and Bankrate remains
virtually debt-free. The strong balance sheet and cash flow represent
a solid base for future growth, enabling Bankrate to extend its product
lines either through internal expansion or by acquisition.
comScore Media Metrix ranks Bankrate.com as the Number 1 site in the Financial
Information and Advice category. Consumers view Bankrate.com as a trusted
brand, a site where they can educate themselves about all aspects of a
banking transaction, and where they can privately comparison shop to find
the products to best meet their individual needs. Bankrate's competitive
strengths, include:
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High Quality Editorial and Data
-- The Company is respected as the authoritative online, print and
broadcast source for rates and editorial content on banking and credit.
Bankrate is the data source of record for the Associated Press, Bloomberg
Financial Markets, the New York Times, the Wall Street Journal, and
the Federal Reserve, as well as over 100 print publications. |
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A Free and Neutral Marketplace
-- Bankrate's rate information and rankings are completely objective.
All US banks, credit unions and other financial institutions are able
to be included regardless of whether they advertise or not. Rate data
is normalized so the consumer can easily make "apples-to-apples"
comparisons. |
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Ease of Use for Decision Making
-- Bankrate facilitates transactions between buyers and sellers by
listing current rates, and telephone numbers for financial institutions
-- some of which are hyperlinked through an advertising arrangement.
Consumers are able to connect with ease and speed with the specific
banks that meet their individual needs. |
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Value for Advertisers -- Advertisers
are keenly aware that Bankrate.com is the place to reach consumers
who are in the midst of making serious financial decisions. Therefore,
advertisers are willing to pay premium rates to compete for the Bankrate
"in-market" audience. The vast majority - over 90% - of
Bankrate's advertising base are traditional companies, not dot-coms.
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A Network with Reach -- Bankrate
was one of the early adopters of both the Internet and the co-brand
distribution model. The Company currently has more than 80 partners
that contribute 30% of the Bankrate's total traffic. These partners
include some of the top tier Web sites including AOL, Yahoo!, MSN,
Bloomberg, USA Today, Motley Fool, and NASDAQ. |
As a category leader and a trusted source, Bankrate has built enormous
brand equity and a very strong franchise. These elements and the Company's
technological infrastructure could be extremely expensive to build from
scratch.
The management team has successfully implemented a restructuring
strategy and has made the infrastructure investments necessary to enable
the Company to continue to grow profitability. Covering more than 100
products segmented geographically in all 50 states, the Company is sufficiently
diversified to meet the needs of most Americans in any economic cycle.
The Company's strong balance sheet and cash flow have placed it in the
position of being able to take advantage of opportunities that may present
themselves to extend its product lines either through internal growth
or by acquisition.
Management
Team | Board
of Directors | Awards
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