NetZero Reports Quarterly Revenue Gain, Net Loss

NetZero Inc. in Westlake Village, which provides free Internet access to customers who agree to view advertising and share their online habits, reported revenue of $16.5 million for its first fiscal quarter ended Sept. 30, up 113% from the $7.7 million reported a year ago.

This compares with revenue of $18.7 million in the June 2000 quarter.

The company added about 800,000 registered users in the most recent quarter, bringing its total registered user base to 5.7 million--representing a 185% increase in the last year. About 2.3 million users accessed NetZero’s service during September.

The company’s net loss was $28.9 million, compared with a loss of $14.9 million for the year-ago quarter and a loss of $26.9 million for the June quarter. On a per-share basis, the net loss for the quarter was 27 cents.

“During this past quarter, Net Zero faced the same pricing challenges experienced by others in the online advertising industry,” said Mark R. Goldston, chairman and chief executive.

NetZero is financed by advertisers, who are able to target certain markets among NetZero customers.