The numbers are impressive but not flattering. Three of the industry’s Internet project management and collaboration companies, Bricsnet, Buzzsaw. com and Citadon, together lost almost $200 million last year. By themselves, the companies that merged to create Citadon–Bidcom and Cephren–posted combined revenue in 2000 of $5.6 million and had operating expenses of $125 million, according to a document produced for the merger. That means their operating loss for the year came to $119.4 million.
All three companies now are involved in raising more money. No wonder these project management and collaboration companies are using profit as the battle cry for 2001. The race to win customers and brand recognition through costly marketing campaigns and heavy discounting appears to be over.