Outsell Financial Scorecard Shows Google and Yahoo! Grabbing Growth; Diverting Revenues from Long-Established Companies
- Information Industry Growth Rate Peaks and Begins to Decline
May 31, 2005
WHAT:
Google and Yahoo! are screaming growth machines compared to the pedigreed giants that have led the information industry for decades, according to Outsell, Inc. Outsell's new "Financial Performance Scorecard, Full Year 2004" shows Google and Yahoo! earning as much new revenue as the 10 largest companies on the Outsell 100 Company Monitor SM combined.
The Outsell 100 SM portfolio is a representative cross-section of publicly traded information companies, including the leading search engine providers. The growth rate of the portfolio has peaked and is starting to decline.
Outsell's unique and in-depth analysis of these financial measures shows fundamental changes taking place in the $263 billion information industry, with companies like Google and Yahoo! squeezing revenues away from the Bottom 10 and trouncing legacy business models.
Specifically:
Revenue powerhouses-In 2004, Google and Yahoo! generated about $4 billion of new revenue from a 2003 base of $2.5 billion. The 10 largest companies in the portfolio, such as Reed Elsevier and Thomson, also generated about $4 billion in new revenue, but from a much larger base of $56 billion. Seven of the 10 giants own significant newspaper and magazine assets, and Google and Yahoo! are clearly diverting advertising revenue from them.
Growth healthy but declining-Outsell 100 companies have now completed a three-year run where they have effectively doubled their total growth rate each year, from 0.9% annual revenue growth in 2001 to 13.8% annual revenue growth in 2004. However, total quarterly growth rates are now decreasing. Outsell expects full-year 2005 growth to be in the low double digits or high single digits.
Top and Bottom 10-Top 10 companies on the Outsell 100 Company Monitor include Corporate Executive Board, Jupitermedia Corporation, Ask Jeeves, Adobe Systems, Moody's, Yahoo!, InfoSpace, Inc., Google, Autonomy and Advisory Board. Bottom 10 companies include Hyperfeed, New Horizons, Scholastic, Penton Media, Inc., Ingenta, Cadmus, Franklin Covey, Comtex, Reuters and Primedia Inc.
Outsell 100 Company Monitor rankings are based solely on financial performance. There is no qualitative, judgmental element in the rankings.
FOR A FULL REPORT:
Journalists seeking a copy of the full report, "Financial Performance Scorecard 2004: Google and Yahoo! Grab Growth as Outsell 100 Peaks," should contact Dawn Ringel, Warner Communications, 781-449-8456 or dawn@warnerpr.com.
About Outsell, Inc.:
Outsell of Burlingame, CA is the leading research and advisory firm providing actionable market analytics for the information industry. Founded in 1994, Outsell helps publishers, commercial information providers, and content software technology vendors identify, maintain, and grow markets and revenue streams. Outsell also works with information management executives in top corporations, government agencies, and educational institutions to benchmark spending, optimize performance, and demonstrate best practices. Outsell invests heavily in unique information industry data assets that form the core of its high-quality, fact-based research, analysis, and recommendations for clients worldwide. For more information, see www.outsellinc.com.
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