Loss Widens for Autobytel
Autobytel, a lead generation company for vehicle sellers, generated $71.2 million during its fiscal 2008, down from $84.4 million a year earlier. The company makes its money primarily on lead fees and providing advertising. The company reported a net loss of $79.9 million, considerably deeper than the $5.4 million loss it took in 2007. The year ended Dec. 31.
The company’s sales and marketing expense dropped from $21.5 million in 2007 to just over $17 million in 2008.
In its fourth quarter, revenue was $14.2 million, down from $18.9 million. Sales and marketing expenses fell from $5.3 million to $3.5 million, and the company’s net loss widened from $4.4 million $15.1 million.
Autobytel’s fourth-quarter expenses included $5.1 million in severance-related costs, and $5.5 million in impairment charges.
The Observer’s Take: Seventy two million dollars is relatively small potatoes for the auto industry –especially when one considers some of this was going for foreign automobiles. Not that anyone needed it, but this is a sobering reminder of how Detroit’s difficulties can have an impact on the DM community. A question: Will Autobytel’s sales and marketing spending be a leading indicator, rising before an anticipated recovery, or will the company be passive and wait for increased demand to loosen its purse strings? And what impact will its decision either way have on its market share?
