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Summary:

Mobile content infrastructure provider Motricity hasn’t had the easiest year. In 2008, it acquired InfoSpace (NSDQ: INSP) Mobile, and moved…

imageMobile content infrastructure provider Motricity hasn’t had the easiest year. In 2008, it acquired InfoSpace (NSDQ: INSP) Mobile, and moved its operations cross country from North Carolina to InfoSpace’s Bellevue, Wash. headquarters. Soon after, Steve Elfman, one of InfoSpace’s top executives, quit to join Sprint (NYSE: S) Nextel and Motricity sued. But still, the privately held company said today it was able to meet its 2008 goal of reaching more than $100 million in revenues. The company also reported a number of statistics, which hinted at the company’s marketshare and provided some evidence that people are accessing more information and entertainment on their phones than ever before. Motricity CEO Ryan Wuerch declined to comment on the lawsuit, other than to say it continues, and declined to provide forecasts for 2009, but did fill in some of the blanks from the last year. Release.

Revenues and profitability: Wuerch: “We said $100 million was the target. We aren

  1. "…Wuerch didn’t say if Motricity was profitable in 2008, but added: “We are very pleased on how we ended 2008. Motricity is in a stronger position than it has ever been…Until we are required to, as a reporting entity, we’ll stay coy.”

    Trans: "No, we are not profitable"

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  2. And to think I've been sitting on the edge of my seat waiting to hear how Mo' has been doing over 2008…

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  3. $100 Million is probably less revenue than each of the two companies had combined BEFORE they merged. All those pageviews don't help if the pricing model is capped at a certain point. Don't confuse purchases made through the platform with revenue or profit to Motricity. Wuerch is trying to throw us off the scent. Those legacy Motricity investors of that $400+ million are never going to see a return on their money.

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  4. Figure the $2.1B worth of transactions, then they are getting an average of what, 4.5% from each transaction? <sigh> I think it will be awhile before we all get to buy their stock on the market.

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  5. Am I wrong or has the sand not shifted in the mobile content industry? Apple, RIM, Google, Nokia have all created their own application platforms that will inevitably erode Motricity's ability to capture revenue.

    If that is the case, then isn't Motricity being displaced and doomed to whither away?

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  6. They met 2008 revenue goals because of what 'old' motricity put in place in early 2008. By moving across the nation, they lost all of their engineering knowledge and pulled the foundation out from under the house. Trust me, the tower is falling, it just hasn't hit the ground yet.

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  7. ProfitShmofit Friday, February 6, 2009

    I would wager that the AT&T contract accounts for a substantial portion of this 100M. The problem of course is AT&T has dropped Motricity, and is simply waiting for their new provider to be ready come online. I wonder if releasing these figures isn't simply a last ditch effort to reload the hype machine.

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  8. I'm not sure all the numbers tie. They say the $2.1 billion cumulative gross content sales is 37% higher than last year. So that means there was $567 million in gcs last year. Then they claim a revenue of $100 million, which is about 18% of this number. Isn't this a higher cut of the revenue of each download than we've been told exists in the past? I thought it was pennies, not dimes, on the dollar.

    Also, do 11.5 BILLION page views produce only $567 million gcs? That's less than a nickel per page view. If the price of the ringtone/wallpaper downloads Motricity funnels average $5, that means there are 100 page views per purchase! If downloads average $1, that's 500 page views per purchase! Not a great conversion rate.

    And this from

    http://blog.hungrymobile.com/2008/07/mobile-content-market-history-10-years-of-mobile-entertainment-1998-2008/

    doesn't bode well:

    "Ringtones, wallpapers, and the content business will almost vanish – people will have free offerings everywhere…"

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  9. ExMoWageSlave Monday, February 9, 2009

    "The problem of course is AT&T has dropped Motricity"

    Cite?

    I don't want to start dancing on their grave -too- soon. Just soon enough.

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  10. Frankly I used to think "WOW!", Motricity is one horrible company based on the comments that have been posted here but seriously people, none of the posters (at least none have posted any hard facts) seem to have any REAL evidence of anything except that they did not like working there.

    Here is a thought for you… MOVE ON. If Motricity makes it, fine. If they do not, fine. What does it really mean to you? Get on with your lives for crying out loud. SHEESH, did you cry and moan to this extent when you worked there? Sure, maybe it was a horrible place to work but seriously, you are not there any longer! What benefit do you get from your continual beating of them? From reading your posts it seems as if you WANT them to fail purely out of vengance. How does that benefit you and why? If you worked there you probably got some shares and therefore your vitrol does not help them have any value. And even if you do not have enough shares to matter or simply do not care why would you want part of impacting in a negative way those who would like to see their shares worth something someday?

    Move on, move on, move on.. <repeat>

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