Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Edward Flynn - Trident.
Edward Flynn - Trident
In regard to the number of searches, the individual searches, that’s a complete different way of handling the business. Do you really feel that that’s the way for you to go at this point completely? Are you going to totally do away with the minimums?
Patrick C. Condo
No, no. Basically we’re offering really a second option to customers. So the first option is a minimum with an advertising share. And the second option is the ability for us to charge them as a capacity model where every search that gets served we are charging the customer for regardless if they sell ads or not.
Edward Flynn - Trident
Economically, that’s the better way to go?
Patrick C. Condo
It all depends. I think it’s an option that we discuss with the customer. If we feel that the first option is the best option, then we sit with the customer and go through it. But in some cases, we have customers today that have an existing network of sites where they already sell ads.
And we’re unable to tap into that because they don’t want to give us a share of ads they’ve already sold. So this gives us the ability to go and combine those sites with new sites and create a whole different revenue stream that we weren’t able to approach before.
Edward Flynn - Trident
There’s been different speculation in the past about the Googles or the Ciscos of the world or people like that looking at your company. When you get to a point where you have, let’s say, you’re breaking even or you have more or double the customers you have now. Do you think that these people might come around?
Patrick C. Condo
Ed, I think that the way to look at this business is that it’s all about traffic. And it’s all about highly qualified advertising and targeting those ads to the most likely customers to consume the ad.
And if you look at the network we’re building and if you look at our goals, if we can get to several hundred million searches on our network, and we’re targeting a network of professionals across a wide variety of verticals. I think that that is where a lot of these large portal companies are trying to go, but they’re unable to get there because they’re targeting such a broad horizontal market.
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