Question for Retirement Fun:
Can you explain what went wrong with their recurring revenue model back in 2007/2008? I think I know what's going on here, but I'd like to hear your explanation for their dismal performance in 2008 when they supposedly had 90% recurring revenue and an economic climate that they say favors the entreprenuerial use of their products.
Here is a press release by PWEB, dated 1/31/08. Notice all the blue sky talk about previous promotions driving future sales, and the prominent mention of recurring revenue.
Pacific WebWorks Recaps 2007 - Highlights Growth
Thursday January 31, 2008 9:00 am ET
SALT LAKE CITY--(BUSINESS WIRE)--Pacific WebWorks, Inc. (OTCBB:PWEB - News) today updated the market on certain accomplishments achieved throughout the year and outlined its expectations for 2008.
2007 represents an important period in the history of Pacific WebWorks, Inc. During 2007 the company implemented its new marketing initiatives with great success. While final numbers for the year end December 31, 2007 are not yet complete the company will finish the year with revenues exceeding 200% of revenues reported in 2006. The company is now cash flow positive and has transitioned from operating losses from continuing operations of over $1 million in 2006 to operating profits in amounts exceeding any previous year in the company’s history. The company is also free of any debt outside of routine payables and legacy liabilities related to discontinued operations.
Largely due to the success of our marketing and product promotions in 2007 our active customer base increased over 600% from approximately 6,500 customers in 2006 to nearly 40,000 customers in 2007. Nearly 90% of company revenues are now recurring monthly revenues related to the hosting which we provide to our portfolio of customers.
In the near future the company will announce several new significant agreements, including new distributor agreements and credit card processing agreements. Additionally, the company will be announcing the relocation of its corporate offices into a new, state-of-the-art facility designed to support continuing growth and product development.
CEO Ken Bell reported, “The growth that we experienced during 2007 has been very rewarding. We have positioned ourselves for continued growth and expect 2008 to be a continuation of the success we experienced in 2007. While our percentage growth rate will clearly be reduced, we expect our overall growth to continue at a high rate. Coming off the record year we had in 2007, we foresee continued growth and success for 2008 and into the foreseeable future. We appreciate the commitment of our staff and the continuing support of our shareholders.”
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