By Todd Cohen
San Diego-based Kintera, which provides software to nonprofits and government, reported a net loss of $9.9 million, or 33 cents a share, for the first quarter ended March 31, compared to a net loss of $5.9 million, or 21 cents a share, for the same period a year earlier.
The company, which began operating in 2001, said in its Form 10Q filed with the U.S. Securities and Exchange Commission that the first-quarter loss had increased its accumulated deficit to $63 million.
“We have experienced operating and net losses in each fiscal quarter since our inception,” the company said in the document. “We will need to increase profitability and we may not be able to do so.”
Revenue for the first quarter totaled $9.5 million, up from $3 million in the same period a year earlier.
Kintera, which completed an initial public offering in December 2003 that netted $36.1 million, attributed the revenue increase mainly to internal growth, revenue from acquired businesses and increased processing of online donations.
The company said it had processed $82.3 million in donations in the first quarter of 2004, compared to $13.3 million in the same period a year earlier.
After trading at just over $12 a share in June 2004, Kintera stock was trading at less than $3.50 a share in late May.
Kintera in February launched CharityGift, an online service that features a gift card to benefit charities.
In March, the company announced it had signed a strategic alliance agreement with Community Foundations of America in Louisville, Ky., to manage and provide web-based technology for a national donor-advised fund service.
And in April, it introduced the Kintera GivingFund, an online payment gateway for donor-advised-fund accounts with a transaction-initiation feature located on nonprofits’ websites.