Hoover’s Annual Report: Hoover’s (Nasdaq:

Hoover’s Annual Report: Hoover’s (Nasdaq: HOOV), the business information company, has released its annual report. It has some interesting details on its subscription strategy: Hoover’s has built a paid subscriber base that includes more than 8,000 multi-seat enterprise accounts, which means multiple seats/licenses within a single company. Subscription revenue represented 67 percent of its total revenue in the year ended March 31, 2002, and 49 percent of total revenue in the year ended March 31, 2001.

“During our fiscal year ended March 31, 2002, we focused our resources on growing our subscription revenue base–particularly our multi-seat enterprise accounts. We view this business as particularly attractive in that it consists primarily of 12-month contracts that are paid up-front and generate attractive cash flows and recurring revenues…Subscriptions to Hoover’s Online are priced according to the number of users and the level of functionality. We have experienced renewal rates of approximately 70 percent on our enterprise subscription business.”

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