Edgar Filing: MULTEX COM INC

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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2001

COMMISSION FILE NUMBER 0-24559
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MULTEX.COM, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

DELAWARE 22-3253344
(State of incorporation) (I.R.S. Employer Identification Number)

100 WILLIAM STREET, 7TH FLOOR
NEW YORK, NEW YORK 10038
(212) 607-2400
(Address, including zip code, and telephone number, including
area code, of registrant's principal executive offices)

Securities registered pursuant to section 12(b) of the act:
None

Securities registered pursuant to section 12(g) of the act:
Common Stock, par value $0.01 per share

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

[X] Yes [ ] No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]

The aggregate market value of voting stock held by non-affiliates of the
registrant as of March 26, 2002 was $151,752,000 (based on the last reported
sale price on the Nasdaq National Market on that date). The number of shares
outstanding of the registrant's common stock as of March 26, 2002 was
32,564,836.

DOCUMENTS INCORPORATED BY REFERENCE

The following documents (or parts thereof) are incorporated by reference into
the following parts of this Form 10-K:

Certain information required in Part III of this Form 10-K is incorporated by
reference to the registrant's Proxy Statement for its 2002 Annual Meeting of
Stockholders.

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MULTEX.COM, INC.

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ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2001

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TABLE OF CONTENTS

PAGE

PART I ......................................................................2
ITEM 1. BUSINESS..............................................................2
ITEM 2. PROPERTIES...........................................................13
ITEM 3. LEGAL PROCEEDINGS....................................................14
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS..................14
PART II .....................................................................15
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS..................................................15
ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA.................................16
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS................................................17
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK...........26
ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.............32
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE.............................................54
PART III .....................................................................55
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT...................55
ITEM 11. EXECUTIVE COMPENSATION...............................................55
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.......55
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.......................55
PART IV .....................................................................56
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K......56
SIGNATURES...........................................................57

THIS ANNUAL REPORT ON FORM 10-K INCLUDES FORWARD-LOOKING STATEMENTS MADE UNDER
THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. WORDS SUCH AS "ANTICIPATES," "EXPECTS," "INTENDS," "PLANS," "BELIEVES,"
"SEEKS," "ESTIMATES," AND SIMILAR EXPRESSIONS IDENTIFY SUCH FORWARD-LOOKING
STATEMENTS. THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE
SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THOSE EXPRESSED HEREIN. SUCH RISKS AND UNCERTAINTIES
INCLUDE, BUT ARE NOT LIMITED TO, THOSE DISCUSSED IN THE SECTION ENTITLED "RISK
FACTORS THAT MAY AFFECT FUTURE RESULTS" ON PAGES 27 THROUGH 31 OF THIS FORM
10-K. UNLESS REQUIRED BY LAW, MULTEX UNDERTAKES NO OBLIGATION TO UPDATE
FORWARD-LOOKING STATEMENTS. READERS SHOULD ALSO CAREFULLY REVIEW THE RISK
FACTORS SET FORTH IN OTHER REPORTS AND DOCUMENTS MULTEX FILES FROM TIME TO TIME
WITH THE SECURITIES AND EXCHANGE COMMISSION.

PART I

ITEM 1. BUSINESS

Multex.com, Inc. (www.multex.com) is a global provider of investment information
and technology solutions for the financial services industry. Multex clients
include investment management firms, broker/dealers, investment banks, retail
brokerages, investor relations departments, corporate, consulting and legal
information centers, and individual investors. Our services enable timely online
access to a multitude of proprietary and partner content and tools, delivered
through our own channels and those of our partners.

Our content offering includes over 5,500,000 research reports on more than
46,000 companies. These reports are published by over 850 investment banks,
brokerage firms and third-party research providers worldwide. We offer research
reports from all the top Institutional Investor-ranked U.S., European, Asian and
Latin American brokerage firms, including Merrill Lynch, Morgan Stanley, Goldman
Sachs, and Salomon Smith Barney. We also provide access to real-time earnings,
revenue and other estimates on over 16,000 companies worldwide, and corporate
and financial information on more than 15,000 companies.

Through our own Web sites and a number of strategic distribution relationships,
millions of users, including institutional investors and financial
professionals, brokers and their clients, corporate executives and individual
investors, are able to use our services. In providing investment information,
Multex's technology expertise is a key differentiator, allowing Multex to become
a leading provider of private-labeled Internet and intranet information delivery
solutions for its target markets. Multex has built complex, highly effective
browser-based client solutions that aggregate and integrate information from
multiple sources. These solutions also provide precision searching capabilities,
and disseminate information to internal and/or external audiences based on
client-defined access and authentication rules in a highly secure environment.
Multex offers a full range of hosting solutions for these private-labeled
solutions, including 24-hour support and maintenance.

INDUSTRY OVERVIEW

The last decade provided substantial worldwide growth in the global ownership of
equity and fixed-income securities. Growth in financial assets resulted from a
number of factors and trends, including households allocating more of their
assets to equity investments, sustained high returns in the equity markets over
a number of years, lower trading costs as a result of regulatory changes and
improved technologies, an increase in the number of mutual funds, a shift from
defined benefits to defined contribution pension models outside of the U.S., and
greater financial sophistication and participation on the part of individual
investors worldwide.

While the financial markets have been negatively affected in the last 18 months,
Multex believes that weakness in the stock market in late 2000 and 2001 has not
resulted in a shift away from these trends. The need for comprehensive
information, delivered on a timely basis, has now become a vital part of the
overall investment decision-making process. As a result, institutional and
individual investors continue to demand "real-time" or near "real-time" access
to global investment research and accurate market information, including
detailed issuer

fundamentals, SEC filings, business and financial news, stock quotes, stock
price graphs and annual reports to make prudent investment decisions.

Traditionally, investment research was physically mailed to investors, which
resulted in delays in the receipt of the research and significant printing,
duplicating and mailing costs. To distribute research reports on a more timely
basis, some analysts use facsimile transmissions. However, conventional
distribution methods do not allow investment banks or brokerage firms to control
which investors access and view their research. Moreover, large institutional
investors often receive hundreds of paper reports, totaling thousands of pages,
each week. Paper-based reports must be manually sorted, distributed, stored,
reviewed and prioritized, which can be time consuming and expensive. Similarly,
investment banks and brokerage firms are significant consumers of investment
research and other financial information, utilizing their own proprietary
research and other corporate documents, as well as research purchased from other
sources, to support their own banking, sales, trading and marketing functions.
These firms seek to quickly and efficiently distribute research and other data
to their investment bankers, brokers and traders in geographically dispersed
locations.

Investment research is one of the primary tools institutional and individual
investors use to assist them in deciding whether to invest in a company or
industry and when to buy or sell a particular security. Investment banks and
brokerage firms, as the primary providers of investment research, have invested
billions of dollars developing their research capabilities, which they use to
build brand name recognition, enhance customer loyalty and generate investment
banking and trading revenues. The ability to offer investment research to
investors who traditionally have not had timely access to it is increasingly
becoming a competitive advantage and a key distinguishing feature for brokerage
firms. As the industry becomes more competitive, investment banks and brokerage
firms want to distribute their research in the fastest and most efficient manner
possible to meet increasing investor demand for better and quicker access to
investment research and market information.

In response to the shortcomings of the traditional research distribution
methods, investment banks and brokerage firms have tried new distribution
methods, including e-mail and distribution through their Web sites, with varying
degrees of success. Distribution by e-mail is inefficient because it not only
requires the recipient to open and view each e-mail message, but it also lacks
easily distinguishable characteristics that would allow the recipient to
differentiate one message from another. Also, e-mail messages cannot be easily
retrieved by non-recipients. Web-site distribution by investment banks and
brokerage firms requires the investor to visit and search numerous Web sites
that provide research, which is time-consuming and inefficient.

One of the emerging trends in institutional money management is the increasing
reliance on research and analysis conducted in-house. With a deeper
understanding of their information requirements, investment management
companies, including hedge funds and mutual fund companies, now produce a large
amount of research and information to satisfy their proprietary needs. Multex
believes that investment management firms will continue to depend on a multitude
of sources, including broker research, to produce comprehensive investment
analysis.

In addition to internal research and broker research, professional investors
need other types of information and analytical tools to develop a comprehensive
and thorough investment analysis before making a trade. These information types
include conference calendars, significant events analysis, independent research
and commentary and market data.

THE MULTEX SOLUTION

Multex's investment research and financial information services provide users
online access to a wide range of research and other investment information from
corporations, leading investment banks, brokerage firms and other third-party
research providers worldwide. Our Web-based technology solutions ensure timely
receipt of information for critical investment decisions and enable research
providers to target their research more efficiently. At the same time,
recipients of the information can use our proprietary search tools to locate and
retrieve the desired information, saving the time and expense of manually
searching through printed reports. Online availability also eliminates costs
otherwise incurred in printing, mailing, sorting and filing printed reports.
Finally, we enable research and information providers to market more
efficiently, not only by reaching their target customers more effectively, but
also by providing feedback regarding their access and usage patterns. Our
services provide the following key benefits:

EXTENSIVE DATABASES OF RESEARCH AND FINANCIAL INFORMATION. We provide investors
with access to extensive online databases of research reports, consensus revenue
and earnings estimates, fundamental financial data and other investment
information on over 46,000 companies. We typically add reports to our database
at the rate of more than 48,000 new reports each week. We continually update and
maintain our database of detailed financial and corporate data on almost every
publicly-traded U.S. corporation. For some of our customers, we also provide
access to stock quotes and real-time SEC filings as part of our services. Our
consensus revenue and earnings estimates provide investors with analysts'
detailed earnings and revenue forecasts for the companies they follow, and
include forecast figures, analyst and broker names, initial and revised
estimates and revision dates. Company fundamental information offered to clients
through our Market Guide products includes a comprehensive view of a given
company, complete with business description, management information, quarterly
and annual financial data, institutional ownership information, and other vital
operational information.

EFFICIENT, COST-EFFECTIVE RESEARCH DISTRIBUTION. We enable investment banks,
brokerage firms and third-party research providers to electronically distribute
their research reports to customers, brokers, bankers and traders via the
Internet or their intranets on a real-time basis. Our services permit research
to be distributed to multiple locations simultaneously. By using our services,
research providers can target investors worldwide, monitor investor requests for
research reports and determine who has accessed their reports. Because our
services are distributed over the Internet and/or our customers' intranets,
research providers save printing and mailing costs and can more easily target
their research to their customers. Our services are password protected and
research included in our database can be accessed only by authorized users.

COMPREHENSIVE SEARCH CAPABILITIES. We have incorporated extensive search
capabilities into our services, thereby enabling users to rapidly and easily
locate relevant research from hundreds of sources, and to reduce the costs of
indexing, organizing and distributing research reports. Users can search for a
particular research report by a number of criteria, including company name,
industry, ticker symbol or analyst. Additionally, users can search on a full
text basis for words or phrases. We also enable users to create searchable,
customized research profiles and portfolios to further facilitate finding and
retrieving documents.

EASE AND EFFICIENCY OF USE. Our services are designed to facilitate the
electronic contribution and online distribution of investment research, as well
the efficient dissemination of financial and corporate data over the Internet.
Our proprietary software allows sell-side research departments and third-party
information providers to easily contribute research reports, financial models,
graphic presentations and other documents directly to our databases in
real-time. Research providers can use existing word processing and desktop
publishing software, including Microsoft Word, Excel and PowerPoint, as well as
WordPerfect, HTML and multimedia creation software, and are not required to
modify their method of document creation. For users accessing research, our
proprietary technology incorporates a graphical user interface and provides
access through leading Internet browsers to simplify finding, retrieving,
viewing and printing research reports.

PRIVATE-LABELED SOLUTIONS. Multex recognizes its clients' need for global,
national and internal brand-building and offers its information, tools and
services to help create and host private-label solutions for information access
and delivery. These solutions can aggregate information of any type or format,
integrate data from multiple sources, including a client's own data and data
from third-party sources, and disseminate information both internally within the
client and externally to prospects or customers. Clients use these private-label
solutions to create a rich environment to better service their internal and/or
external audience and to differentiate themselves from their competitors. These
private-labeled solutions are designed and developed by Multex, and hosted in
Multex's state-of-the-art data centers complete with back-up and contingency
systems, and offer global round-the-clock support and help desk functionality.
Through these solutions, Multex helps its clients focus on their core
competencies, leaving Multex to provide supporting technological capabilities.

STRATEGY

Our objective is to be the leading global provider of online investment
research, financial information and related technology services for the
institutional investment community. The following are the key elements of our
strategy:

PROVIDE EXTENSIVE INVESTMENT RESEARCH AND FINANCIAL INFORMATION. We intend to
continue to leverage our success as an investment research and financial
information source for institutional and individual investors. We continuously
target leading investment banks and brokerage firms in an effort to add their
research to our research database. By establishing relationships with other
third-party content providers, including Morningstar, Standard & Poor's, Value
Line, Quote.com and others, we can offer extensive third-party investment
research and information. Through our Market Guide division, we are able to
provide accurate, timely and objective financial, descriptive and other
information on publicly-traded corporations. Through our Multex Global Estimates
division, we are able to provide proprietary earnings and revenue estimates. We
believe that by continually incorporating additional sources of investment and
financial information into our databases, we will be well positioned to become
the premier source of high-value investment information.

EXPAND DISTRIBUTION CHANNELS. We employ a broad array of distribution channels
for our services and are continuously identifying and developing new channels.
For distribution of investment research into the institutional investor market,
we have agreements with leading third-party distributors, including FactSet,
Advent, Bloomberg, Dow Jones and Reuters. Using advanced solutions, which
include data files, XML APIs, and completely hosted solutions, we distribute
broker and independent research, estimates data, and detailed corporate and
financial information to over 150 information vendors and websites servicing
individual investors, including, Yahoo!, AOL Time Warner, Charles Schwab,
E*Trade, Fidelity, Wall Street Journal Online and professional vendors that
service the institutional marketplace including FactSet, Reuters, OneSource and
Siebel.

INCREASE AWARENESS OF THE MULTEX FAMILY OF BRANDS. We believe that increasing
the brand name awareness of Multex and our services in the financial community
will contribute to our future success. We have successfully built a brand name
among institutional investors, research providers and the consumers of financial
information and are targeting our marketing efforts to expand the global
recognition of our brand names through advertising, direct mail, trade shows,
seminars and conferences as well as joint marketing initiatives with information
providers and distributors. We seek to incorporate our branded logo on each Web
site that utilizes our information or technology to increase the client and
prospective client awareness of the Multex family of brands. We believe that the
financial media influences other buying decisions, and therefore are also
working closely with them to use Multex's estimates and financial data in return
for attribution. In recent months the Wall Street Journal and CNBC, among
others, have begun to increasingly use our information for their reporting.

SUPPORT MARKETING ACTIVITIES OF OUR RETAIL BROKERAGE CLIENTS. Through our Multex
Investor Web sites, we are targeting the individual investor market to provide
lead generation capabilities for our retail brokerage clients while providing
unique investment research information to individual investors. We intend to
expand our related sales and marketing efforts in order to increase traffic on
Multex Investor and expand our member base. In addition, to addressing the
individual investor market, we attempt to capitalize on our arrangements with
leading Internet portals and personal finance Web sites, including America
Online, The Wall Street Journal Interactive, CNNfn, Yahoo!, and Intuit. We are
also seeking to expand the scope of research available to individual investors
on Multex Investor from leading investment banks and brokerage firms. For retail
brokerage firms, Multex Investor provides an opportunity to establish a
relationship with individual investors on the Internet.

EXTEND GLOBAL PRESENCE. To provide U.S. and foreign investors with access to
financial information and investment research obtained directly from issuers or
prepared by leading investment banks and brokerage firms throughout the world,
we target international companies, contributors and subscribers from our
headquarters in New York, and from offices in London, San Francisco, Edinburgh
and Hong Kong. We believe that institutional investors in Europe, the Pacific
Rim and the numerous emerging markets require access to high quality online
investment research and information. Many investment banks and brokerage firms
in the U.S. and foreign markets are seeking to distribute their research
worldwide. For the global individual investor and retail brokerage markets,
Multex has formed joint ventures with Reuters to offer research and investment
information to individuals outside of U.S. In this respect, Multex Investor
Europe serves the individual investor and retail brokerage markets in the United
Kingdom and Germany, with sites that are now fully operational. Multex Investor
Japan serves the Japanese market and began operations in mid-2001.

MAINTAIN TECHNOLOGY LEADERSHIP. We intend to continuously develop new
technologies to enhance our services. We intend to maintain our leadership
position by continuing to improve our technology through investment in research
and development activities, use of new Internet, intranet and extranet
technologies and integration of each

of our services. In particular, we are extending our available document formats
to support XML tagging, spreadsheets, presentation applications, HTML-based
pages, URL references, and audio and video files. We continue to enhance our
intelligent categorization tool, which provides our clients context and
"learning" from the publishing habits of over 35,000 analysts. We will develop
end-to-end market-based solutions using our Tornado technology platform, which
is built on the leading web services model and allows rapid development of
modular solutions to provide greatest value to our clients.

SERVICES

The following table sets forth summary information concerning our principal
products and service offerings:

MULTEX SERVICE OFFERINGS

Name of Service Description Target Market
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MultexNET Access to real-time, Buyside and sellside
commingled broker research, institutions and
global revenue and earnings corporations.
estimates, company
fundamental information,
and other third-party
information.

MultexEXPRESS Development, hosting and Sellside investment banks
real-time distribution of and brokerage firms,
research and other buyside institutions, and
information on customized other financial services
Web sites for institutional companies.
clients.

MultexNet On-Demand Access to commingled, Corporations, financial
pay-per-view research on a institutions and advisors,
delayed basis. professional service firms
and libraries.

Multex Investor Financial destination Web Retail brokerage firms and
site with access to free individual investors.
and pay-per-view research
on a delayed basis, as well
as other financial data for
the individual investors.

Market Guide Financial and corporate Financial institutions,
information and reports on institutional investors,
over 15,000 publicly traded corporations, and financial
companies and estimate web sites.
information on 17,000
companies worldwide.

MultexIR Single source solution for Corporate investor
market insight, shareholder relations.
analysis, and shareholder
communication tools.

MULTEXNET

MultexNET enables subscribers to access, on a real-time basis over the Internet,
commingled full-text investment research reports supplied by leading investment
banks, brokerage firms and third-party research providers. In addition to
brokerage research, MultexNet also provides earnings and revenue estimates and
company fundamental data. Over 11,000 mutual fund managers, portfolio managers
and other institutional investors, as well as research analysts and other
financial services professionals, use MultexNET, which offers timely online
access to over

5,500,000 research reports and other investment information from approximately
850 information providers. Subscribers to MultexNET are offered advanced
searching and filtering capabilities, and the ability to view and retrieve the
information over the Internet. Our proprietary software enables us to distribute
a particular document only to those users who have been authorized or entitled
to access the report by the firm that authored the report. MultexNET enables
research and other information providers to monitor requests for their research
reports and determine who has accessed and viewed the reports. Subscribers who
are entitled to access particular embargoed research and third-party research
information are able to access these reports through MultexNET On-Demand on a
pay-per-view basis after the typical embargo period has ended.

Content features of MultexNET include real-time access to high-quality
multimedia and rich text research reports, earnings and revenue estimates,
company fundamental information, events calendar, stock screening tools, delayed
stock quotes and SEC filings. The searching functionality of MultexNET includes
the ability to utilize advanced searching features, which permit searches by
company name, ticker symbol, brokerage firm, analyst, industry/subject codes and
date, and report subject and type. Profiles and Alerts offer the ability to
create and modify customized profiles in order to ensure the delivery of updated
research information about those companies in a particular user's portfolio or
profile. MultexNET also offers easy-to-use document viewing, printing, faxing
and e-mail options. In addition, subscribers may arrange for automated fax
and/or e- mail distribution of research reports to the subscriber's end-users.
Preference settings offer users the ability to customize the usage experience by
fine-tuning all key aspects of MultexNET.

Research reports and other financial information available through MultexNET are
stored on our servers and made available to subscribers who have an Internet
connection, or a connection to an extranet maintained by us, Microsoft Internet
Explorer or Netscape Navigator Web browsers, and the Adobe Acrobat viewer
installed on their workstation, desktop or laptop computer. Through the recent
introduction of Multex's second-generation wireless offering, information can
also be retrieved via any hand-held device that handles micro-browser
technology. Pricing for MultexNET is based on the number of users accessing the
service.

MULTEXEXPRESS

MultexEXPRESS is our application service provider business ("ASP") that enables
investment banks, brokerage firms and other financial institutions to distribute
their own proprietary financial research, as well as corporate documents, forms,
news and other proprietary content, over the Internet or through intranets and
other private networks. Using MultexEXPRESS, investment banks, brokerage firms
and other financial institutions are able to reduce the cost of printing and
distributing research reports and other internal information and can disseminate
more timely information to their employees and customers. Similar to MultexNET,
MultexEXPRESS offers the contributing firm the ability to identify which users
actually access research through the usage reporting system incorporated into
MultexEXPRESS. MultexEXPRESS can be implemented as a unique Internet site or
seamlessly integrated into a firm's existing online presence to target
information to employees and key clients on a real-time basis. MultexEXPRESS is
built on the same technology platform and provides users with the same core
functionality found in MultexNET. MultexEXPRESS also offers additional features
and integration options targeted to the internal distribution needs of
investment banks, brokerage firms and other financial institutions.
MultexEXPRESS also provides the buy and sellside firms with solutions that help
them to better acquire and manage leads. MultexEXPRESS is generally contracted
for a one- to three-year period at a fixed rate.

MULTEXNET ON-DEMAND

MultexNet On-Demand gives corporations, financial institutions and advisors,
institutional investors, other professional service firms and libraries, the
ability to access more than 2.3 million research reports and other information
from more than 750 MultexNET research providers. Each report can be purchased on
a pay-per-view basis after an embargo period during which the research providers
make the report available on a proprietary basis only to their own employees and
customers. This service is available either on a stand- alone basis, through
strategic distribution channels or as a part of MultexNET, MultexEXPRESS or
Multex Investor. Multex Net On-Demand has foreign equities and investment
information, as well as research from third-party and independent market
research companies such as Forrester, Gartner Group and IDC.

MultexNet On-Demand customers can purchase and download the research reports to
their own computer using advanced searching and filtering technology that
locates documents by symbol, industry, brokerage firm, full-text words and
phrases, or user-defined portfolios and profiles. Users can receive e-mail
alerts throughout the day, which may be keyed to their portfolios or other
user-provided criteria. The financial research reports available to Multex Net
On-Demand customers include both those relating to a particular company and
those relating to an industry as a whole. Research from independent research
providers, including Gartner Group, Standard & Poor's, Disclosure and Value Line
Mutual Fund Survey, is also available for purchase, as well reports from the
Market Guide database. An online purchase history provides a specific list of
all of the reports purchased by an individual user.

Prices per document available through MultexNet On-Demand generally range from
$5.00 to several hundred dollars based on the length and type of document. We
share the pay-per-view fees generated from the sale of documents with the
investment bank, brokerage firm or third-party research provider that authored
the original research report, and the distributor through which the purchase was
initiated. There is no registration or subscription fee for use of this service.
Some of our users have purchased an annual subscription that enables them to
purchase individual research reports at a discounted price. We are also adding
analysis from leading third-party advisory services.

MULTEX INVESTOR

Multex Investor is an investment information destination site and an interactive
community targeting the rapidly growing individual investor market. Visitors to
Multex Investor can join as a "member" at no cost. Members of Multex Investor
can download, view and print at no cost a wide range of investment research
reports and investment content from sponsoring brokerage firms, investment
banks, and member-generated content, as well as our proprietary content. Members
also have access to over 750,000 premium "pay-per-view" investment and brokerage
research reports from over 350 brokerage firms, investment banks and third-party
information providers. Multex Investor also offers individual investors access
to Wall Street analysts, who serve as "analysts-in-residence" on a weekly
rotation basis and answer user-posted questions on specific subject or company.
For retail brokerage firms, Multex Investor acts as an intermediary between the
brokerage firms that share their institutional quality equity and fixed income
research with individual investors at no costs, and assists them with their
efforts to establish a relationship with individual investors to provide trade
execution and advice services. We have established a number of strategic
distribution relationships to promote Multex Investor, including a strategic
distribution relationship with America Online to serve as the anchor tenant for
brokerage research on the AOL Personal Finance channel. In addition, we have
established distribution relationships for Multex Investor with other Internet
portals and financial sites, including The Wall Street Journal Interactive,
CNNfn, Intuit, Quote.com and Yahoo!.

We generate revenue from Multex Investor through the sale of sponsorships to
investment banks and brokerage firms, the sale of banner advertisements that
allow interested users to link directly to the advertisers' own Web sites, and
pay-per-view sales of investment research and other financial reports.

MARKET GUIDE

Market Guide acquires, integrates, condenses and publishes accurate, timely and
objective financial, descriptive and other information on publicly-traded
corporations. Market Guide maintains one of the largest U.S. public company
databases with over 15,000 companies traded on the major U.S. and Canadian
markets. Market Guide has also created widely used and well-regarded proprietary
industry and sector groupings and assigns companies to these industries and
sectors. Market Guide then adds value by computing ratios, peer group
comparisons, growth rates and other statistics, which are presented as fielded
information in various time tested report formats that follow a recommended
analytic process and are supported by extensive educational content. Market
Guide also has a historical database of daily pricing and other information
dating back to 1983. Other product offerings include business description,
officer and director information and business and geographical segment
information.

Market Guide adds value and distinguishes itself from the competition by the
following:

o A flexible database design that presents financial statements in the same
detail as issued by each corporation. This gives users important insights
not available in competitive databases, thereby enabling them to make
better informed investment decisions;

o Mapping financial data into standardized formats to allow consistent
calculations and cross company comparisons;

o Including auxiliary information such as earnings estimates, price
performance, relative price performance, summary insider and institutional
ownership statistics, bond ratings, corporate profile information and short
interest statistics, giving users a complete perspective on each company;

o Calculating over 500 popular financial ratios, growth rates and averages
computed for the users' convenience; and

o Carefully planned, market tested display formats, including company to
industry and sector comparisons, allowing users to quickly and efficiently
make informed investment decisions.

The targeted markets for Market Guide's data and related products include
investment managers, investment research departments, financial planners,
investment counselors, investment bankers, banks, stockbrokers and brokerage
firms, individual investors, financial Web sites and other Internet sites.

Market Guide also maintains earnings and revenue estimate databases and
generates related, proprietary financial reports, which are resold through
various distributors. Marketed under the Multex Global Estimates brand, the
estimates reports and data feeds are available through MultexNet, Multex Net
On-Demand, Multex Investor, and also offered through professional information
vendors and financial web sites.

MULTEXIR

MultexIR is a recently introduced product that allows corporate investor
professionals access to real-time full-text investment research reports from the
leading investment banks, brokerage firms and third-party research providers. In
addition to brokerage research, MultexIR offers a wide range of consensus and
detailed estimates, including earnings and revenue forecasts. MultexIR also
provides company fundamental data and a screening application, which allow
corporate investor professionals to conduct peer comparisons. The ownership
information offered on MultexIR allows investor relations professionals to
analyze stock ownership in their company versus the competition, and permits
these professionals to explore institutions with the potential to own stock in
their company. MultexIR also includes access to stock quotes, news, SEC filings,
and charting capabilities.

MultexIR offers many similar functionalities as MultexNET, such as advanced
searching and filtering capabilities, and the ability to view and retrieve the
information over the Internet. The searching functionality of MultexIR includes
the ability to utilize advanced reports searching features, including searching
by company name, ticker symbol, brokerage firm, analyst, industry/subject codes
and date, and report subject and type.

Similarly, our proprietary software enables us to distribute a particular
research or other financial report only to those corporate users who have been
authorized or entitled to access the report by the firm that authored the
report. The readership and usage tools of MultexIR allow research contributors
to monitor requests for their research reports and determine who has accessed
and viewed the reports.

Portfolio capability on MultexIR allows users to create a list of companies that
interest them, and use this list to quickly access any content type, including
research, estimates and fundamental data. Preference settings on MultexIR offer
users the ability to customize the usage experience by fine-tuning all key
aspects of the service.

STRATEGIC DISTRIBUTION RELATIONSHIPS

We have established a number of strategic distribution relationships to provide
marketing and additional distribution for our services, to build traffic on our
Web sites, and to increase investor awareness of our services and the Multex
brand name. These strategic relationships target both institutional investors
and individual investors.

We have entered into agreements and strategic relationships with Bloomberg,
Disclosure, Dow Jones, FactSet and Reuters to assist us in marketing our
services to institutional investors. In each case, we share in revenues
generated

from sales to end-users through the strategic partners' distribution networks.
The principal services distributed by these strategic partners include brokerage
and independent research coupled with advanced searching mechanisms, company
fundamental data, and estimates information. This content is made available as a
service through the partners' distribution network on similar terms to those
available to subscribers of MultexNET and MultexNet On-Demand.

In order to enhance the distribution of investment research to the individual
investor market, we have entered into an agreement with America Online. This
agreement is for an initial two-year term and is automatically renewable unless
either party gives advance notice of its intention not to renew. Under our
agreement with AOL, we have secured a position as an anchor tenant for brokerage
research on the AOL Personal Finance channel as well as integrated links on
other screens within the AOL service, with links from those locations back to
Multex Investor.

In addition to the strategic relationships described above, we have entered into
agreements with numerous other distributors, including Yahoo!, Big Charts,
CNNfn, Intuit, Bloomberg, SmartMoney.com and Ziff Davis Interactive Investor, as
well as 300 affiliates, to further attract traffic to Multex Investor and our
other Web sites.

SALES AND MARKETING

Multex's sales organization is organized into market-oriented teams focused on
specific solutions offered to each of their respective markets. This allows
Multex to effectively assess the solutions need of each company and successfully
sell the required pieces of the solution. Currently, our sales personnel are
located in our offices in New York, London, Hong Kong, San Francisco, and
Edinburgh. This year we have also expanded our sales and account management
presence in Tokyo and are building relationships through our Multex Investor
Japan joint venture.

In addition to our direct sales efforts, Multex's services continue to be sold
over a growing number of third-party channels, including Reuters, Bloomberg, and
Factset, collectively reaching individual and institutional investors around the
world. We believe that our presence on these channels also serves as a
significant and continuous source of marketing for our services and the Multex
brand name.

The sales force is supported by our marketing organization, which leverages its
skills to provide corporate marketing, strategic and tactical product marketing,
public relations, advertising, and design and creative services to the sales
organization worldwide.

RESEARCH AND DEVELOPMENT

Our future success will depend upon our ability to maintain and develop
competitive technologies, to continue to enhance our current services and to
develop and introduce new services in a timely and cost-effective manner that
meets changing conditions, including evolving customer needs, new competitive
service offerings, emerging industry standards and rapidly changing technology.
We have a dedicated research and development organization that develops new
features and functionality for our existing services. The research and
development team has expertise in network design and implementation, both
Internet and intranet, software development, database architecture design,
maintenance and development and a variety of programming tools, languages and
operating systems.

CUSTOMER SERVICE AND NETWORK SUPPORT

Multex is committed to providing a high level of service and support to its
customers. Because our services are available to users 24 hours-a-day, seven
days-a-week, our Help Desk and Operations Support services are likewise
continuously available.

SYSTEM ARCHITECTURE AND TECHNOLOGY

We believe that our system architecture and proprietary technology provide us
with an important competitive advantage. We use open standard components,
including Microsoft Windows NT and Windows 2000, Microsoft Internet Information
Server, and Microsoft SQL Server versions 7.0 and SQL2000. The infrastructure of
our production sites is built to provide high availability services to both
contributors and users over Internet and intranet

channels. Load balancing and back-ups of the specific core components of our
system are in place and are fully operational, which allows continuous service
in case of unexpected component failure, maintenance and upgrades. Our
infrastructure is scalable, allowing us to quickly adjust to our expanding
client demands and support our growing database of research and financial
content.

Our operations are dependent on our ability to maintain our computer and
telecommunications systems in effective working order, and our ability to
protect our systems against damage from fire, natural disaster, power loss,
telecommunications failure or similar events. We operate two data centers in
downtown Manhattan, a new center at 75 Park Place and a second data center at
100 William Street. In April 2001, we vacated our 33 Maiden Lane data center.
The two production data centers are designed to provide highly available service
and resiliency for major operating components, with 75 Park Place equipped to
operate independently on diesel generator power in the event of a major power
disaster. However, these measures will not eliminate the significant risk to our
operations from a broader regional disaster. In addition, any failure or delay
in the timely transmission or receipt of feeds and computer downloads from our
information providers, due to system failure of the information providers, the
public network or other failures, could disrupt our operations.

COMPETITION

The market for the aggregation and distribution of investment information and
related services is intensely competitive and this competition is expected to
continue to increase. We believe that our ability to compete will depend upon
many factors both within and beyond our control, including continuing
relationships with leading providers of investment research, the timing and
market acceptance of new services and enhancements to existing services
developed by us and our competitors, ease of use, performance, price,
reliability, customer service and support, and sales and marketing efforts. Our
competitors vary in size and in the scope and breadth of services offered.
Further, we encounter direct and indirect competition from a number of sources,
including traditional media, companies that provide investment research,
including investment banks and brokerage firms, many of whom have their own Web
sites, investment newsletters, personal financial magazines and other Internet
providers of either free or subscription research services. In addition,
extensive company-specific information, as well as general investment research
relating to particular industries, may be obtained, frequently without charge,
from widely-available sources, including annual reports, Standard & Poor's
company reports, Value Line investment research reports, Media General Financial
Services and Disclosure, all of which are available from public libraries, on
the Internet and from the companies to which these reports relate, and industry
research appearing in financial periodicals.

We believe that the principal competitive factors in attracting and retaining
information providers include the ability to provide full-text,
publication-quality research reports electronically on a real-time basis,
relationships with institutional investors interested in receiving this research
and the flexibility of open architecture systems which enable any computer user
with access to a browser to receive research reports regardless of which
operating system controls the information provider's computer. We believe that
the principal competitive factors in attracting and retaining subscribers
include price of the service, the depth, breadth and timeliness of content, the
full-text search features available and the ease of use. We believe that the
principal competitive factors in attracting advertisers will include the number
of subscribers, the demographics of these subscribers and the
"pre-qualification" features that can be offered to investment banks and
brokerage firms. There can be no assurance that we will be able to compete
favorably with respect to these or any other competitive factors.

Our MultexNET and MultexNet On-Demand services compete with large and
well-established distributors of financial information, including Thomson
Financial First Call, Investext and I/B/E/S services. Our MultexEXPRESS service
competes with services provided by in-house information services personnel and
independent systems integrators. Our Multex Investor service competes with Web
sites that offer personal finance information, and Web sites hosted by
investment banks and brokerage firms, such as CSFB and Prudential Securities,
that offer a particular firm's research reports online either exclusively to
their customers or more generally to the public. Numerous other competitors,
including Standard & Poor's, Mergent and others, offer similar investment
research-based services that compete, or may in the future compete, directly and
indirectly with our services. Our Market Guide line of company information
products and Multex Global Estimates, compete with offerings from S&P Compustat,
Media General, First Call, I/B/E/S, and Zacks. Many of our existing and
prospective competitors have longer operating histories, greater name
recognition, larger customer bases and significantly

greater financial, technical and marketing resources than we do. As a result,
they may be able to respond more quickly to new or emerging technologies and
changes in investor requirements, or devote greater resources to the
development, promotion and sale of their services than we can. These competitors
may be able to undertake more extensive marketing campaigns, adopt more
aggressive pricing policies and make more attractive offers to potential
employees, subscribers, strategic partners and providers of investment research
information.

CUSTOMER CONCENTRATION

Historically, a significant portion of the Company's revenues in any particular
period has been attributable to a small number of customers. The composition of
the Company's largest customers has varied from year to year. Sales to the
Company's three largest customers accounted for approximately 20.4%, 21.5% and
22.1% of the Company's revenues during fiscal 1999, 2000 and 2001, respectively.
Moreover, sales by the Company to Merrill Lynch & Co. accounted for
approximately 10.2%, 13.5% and 11.1% of revenues in fiscal 1999, 2000 and 2001,
respectively. The loss of any significant customer, including Merrill Lynch &
Co., could have a material adverse affect on the Company's business, financial
condition and results of operations.

INTELLECTUAL PROPERTY

Our future success will depend, in significant part, on our intellectual
property, and we rely on copyright, patent, trade secret and trademark laws in
the United States and other jurisdictions to protect our proprietary rights. We
own copyrights and trade secrets in the network architecture, database
structure, computer software, and online materials, including content, that we
have developed or acquired, and currently hold limited licenses to use and
distribute software in which third parties own copyrights and trade secrets,
including standard software packages for electronic document and database
management. We have also entered into limited license agreements with the
investment banks, brokerage firms and other third-party research providers that
own the copyrights in research reports that we distribute electronically. There
can be no assurance that we will be able to maintain our licenses for research
content, that we will be able to obtain these licenses in the future on
commercially reasonable terms, if at all, or that our competitors will not be
able to independently develop competing services that avoid infringing our
proprietary rights. Also, because none of our licenses of research content are
exclusive, this content is and will be available to our current and future
competitors. Failure on our part to protect or secure ownership of, or to
maintain licensed rights to use and distribute content of others could have a
material and adverse effect on our business, results of operations and financial
condition.

We have been issued U.S. and foreign patents that claim certain aspects of an
information delivery and authentication system that provides entitlement and
electronic distribution of research documents over the Internet, as well as
aspects of systems that provide intelligent categorization of documents. These
patents expire between 2016 and 2019. We have filed applications for additional
U.S. and foreign patents covering various aspects of our core technology. There
can be no assurance that any of our pending patent applications will be allowed,
that any patents will be issued to us even if the respective applications have
been or will be allowed, or that any patents that are issued to us will not be
successfully challenged by others or otherwise invalidated. We also rely on
trade secrets and proprietary know-how for certain unpatented aspects of our
business information and technology. To protect such information, we require all
employees, consultants and licensees to enter into confidentiality agreements
limiting the disclosure and use of such information. There can be no assurance
that these agreements provide meaningful protection or that they will not be
breached, that we will have adequate remedies for any such breach, or that our
trade secrets, proprietary know-how, and technological advances will not
otherwise become known to others. In addition, there can be no assurance that,
despite precautions we have taken, others have not obtained or will not obtain
access to our proprietary technology. Further, there can be no assurance that
third parties will not independently develop substantially equivalent or better
technology or acquire equivalent business information.

We rely upon and seek to protect the trademarks and service marks that we
currently use, and those that we intend to use in the future, through
registration in the United States and other jurisdictions. We have been granted
United States federal and various foreign registrations for Multex, MultexNET,
MultexEXPRESS and Multex Investor, as well as certain associated logos, as
trademarks and service marks, and have applied for registration of the same
marks in various other foreign jurisdictions. We also use the following
trademarks and service marks: Multex, Multex.com, the Multex.com logo, Multex
Research-On-Demand, Market Guide and Multex Global Estimates. United States and
various foreign applications are pending for the other marks. There can be no
assurance that our

use of and interest in these trademarks and service marks will be subject to any
legal protection in any of the jurisdictions in which we now do business or
might do business in the future, nor that they, or any of the registrations that
have already been granted to us, will not be successfully challenged by others
and invalidated through administrative process or litigation. As our business is
dependent on brand recognition in the marketplace, any failure to maintain and
protect our trademarks and service marks could have a material and adverse
effect on our business, results of operations and financial condition.

We have licensed and expect to license some of our proprietary technology to
third parties, including joint ventures with third parties, in connection with
the establishment of our international business operations, which may be
controlled by these third parties. While we will attempt to ensure that our
proprietary rights will be protected by our business partners, no assurances can
be given that these partners will not take actions that could materially and
adversely affect the value of our proprietary rights or the reputation of our
services and technologies. We currently license some aspects of our text search
functionality and relational database technologies from third parties. Our
failure to maintain these licenses, or to find a replacement for these
technologies in a timely and cost-effective manner, could have a material
adverse effect on our business, results of operations and financial condition.

Legal standards relating to the validity, enforceability and scope of protection
of proprietary rights in Internet-related businesses are still evolving, and no
assurance can be given as to the future viability or value of any of our
proprietary rights.

GOVERNMENT REGULATION

We are subject, both directly and indirectly, to various laws and governmental
regulations relating to our business. There are currently few laws or
regulations directly applicable to commercial online services or the Internet.
However, due to the increasing popularity and use of commercial online services
and the Internet, it is possible that a number of laws and regulations may be
adopted with respect to commercial online services and the Internet. These laws
and regulations may cover issues including, for example, user privacy, pricing
and characteristics and quality of products and services. Moreover, the
applicability to commercial online services and the Internet of existing laws
governing issues including, for example, property ownership, libel and personal
privacy is uncertain and could expose us to substantial liability. Any new
legislation or regulation or the application of existing laws and regulations to
the Internet could have a material and adverse effect on our business, results
of operations and financial condition.

As our services are available over the Internet anywhere in the world, and as we
intend to offer services specifically aimed at jurisdictions outside the United
States, multiple jurisdictions may claim that we are required to qualify to do
business as a foreign corporation in each of those jurisdictions. Failure by us
to qualify as a foreign corporation in a jurisdiction where we are required to
do so could subject us to taxes and penalties for the failure to qualify. It is
possible that state and foreign governments might also attempt to regulate our
transmissions of content on our Web sites or prosecute us for violations of
their laws. There can be no assurance that violations of local laws will not be
alleged or charged by state or foreign governments, that we might not
unintentionally violate these laws or that these laws will not be modified, or
new laws enacted, in the future.

EMPLOYEES

At December 31, 2001, we employed 506 persons, compared to 561 persons at
December 31, 2000. Our future success will depend in substantial part upon our
ability to attract and retain highly qualified employees. Competition for
personnel, in particular information technology professionals, is intense, and
there can be no assurance that we will be able to retain our senior management
or other key employees, or that we will be able to attract and retain additional
qualified personnel in the future. Our employees are not represented by any
collective bargaining organization and we consider our relations with our
employees to be good.

ITEM 2. PROPERTIES

Our corporate headquarters are located in New York, New York, where we occupy
approximately 40,000 square feet under a lease that expires in 2010. This space
accommodates our corporate headquarters and one of our data centers. We also
lease 15,000 square feet of space in New York City, which accommodates another
of our data

centers and related staff. This lease expires in 2012. We have a third location
located in New York City where we lease approximately 36,000 square feet of
space under a lease that expires in 2005. We also have approximately 19,000
square feet of space located in Lake Success, New York under a lease that
expires in 2005.

We currently lease approximately 6,000 square feet of office space in San
Francisco, California under a lease that expires in 2004. We lease approximately
8,500 square feet of office space in London. This lease expires in 2010 with an
option to terminate the lease in 2005. In Hong Kong, we are leasing
approximately 3,000 square feet under a lease that terminates in 2004. In
Scotland, we are leasing approximately 13,000 square feet under a lease that
terminates in 2008.

We believe that we will be able to obtain additional space as needed on
commercially reasonable terms.

ITEM 3. LEGAL PROCEEDINGS

On and after May 8, 2001, several putative shareholder class action lawsuits
were filed against the Company, certain of our current and former officers and
directors, and a number of investment banks, including some of the underwriters
of our initial public offering. The lawsuits were filed in the United States
District Court for the Southern District of New York. The lawsuits assert claims
against us pursuant to Sections 11 and 15 of the Securities Act of 1933, and
pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as
well as Rule 10b-5 promulgated thereunder. Plaintiffs allege that the
underwriter defendants agreed to allocate stock in our initial public offering
to certain investors in exchange for excessive and undisclosed commissions and
agreements by those investors to make additional purchases of stock in the
aftermarket at pre-determined prices. Plaintiffs allege that the prospectus for
our initial public offering was false and misleading in violation of the
securities laws because it did not disclose these arrangements. We and our
current and former officers and directors are vigorously defending the actions.
The lawsuits now have been consolidated into a single action, which is being
coordinated with over three hundred other nearly identical actions filed against
other companies before one judge. No date has been set for any response to the
complaints. The complaints seek damages in an unspecified amount.

While the outcome of the claims against us cannot be predicted with certainty,
management does not believe that the outcome of these legal matters will have a
material adverse effect on our results of operations or financial condition.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of stockholders through the solicitation of
proxies or otherwise during the fourth quarter of the fiscal year ending
December 31, 2001.

PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS

PRICE RANGE OF COMMON STOCK

Multex's common stock has been quoted on the Nasdaq National Market under the
symbol "MLTX" since March 17, 1999. The following table sets forth the range of
high and low bid information (in dollars per share) as quoted on the Nasdaq
National Market for Multex common stock for the periods indicated.

Calendar Year 2000: High Low
---- ---

First Quarter $ 38.00 $ 23.50
Second Quarter 35.50 12.50
Third Quarter 29.50 16.88
Fourth Quarter 19.00 7.88

Calendar Year 2001: High Low
---- ---

First Quarter $ 22.38 $ 11.25
Second Quarter 17.68 12.00
Third Quarter 17.25 1.88
Fourth Quarter 7.05 2.00

HOLDERS

As of March 26, 2002, there were approximately 249 holders of record of our
common stock.

DIVIDEND POLICY

We have not declared or paid any cash dividends on our capital stock since
inception. We intend to retain any future earnings to finance the operation and
expansion of our business and do not anticipate paying any cash dividends in the
foreseeable future. Consequently, stockholders will need to sell shares of
common stock in order to realize a return on their investment, if any.

ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA

The following selected consolidated historical financial data is qualified by
reference to, and should be read in conjunction with, the historical financial
statements of Multex and the notes thereto and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" included elsewhere
herein.

Years Ended December 31,
------------------------
2001 2000 1999 1998 1997
---- ---- ---- ---- ----
(in thousands, except share and per share data)

Statement of Operations Data:
Gross revenues.......................... $ 96,615 $ 85,942 $ 40,850 $ 22,021 $ 12,616
Performance-based warrants.............. (2,915) - - - -
------------ ----------- ----------- ----------- -----------
Net revenues............................ 93,700 85,942 40,850 22,021 12,616
Cost of revenues........................ 25,174 17,839 10,569 5,083 2,720
Gross profit............................ 68,526 68,103 30,281 16,938 9,896
Operating expenses:
Sales and marketing..................... 25,921 26,017 26,379 8,667 4,568
Research and development................ 8,003 10,149 6,301 3,167 2,873
General and administrative.............. 32,065 25,000 14,403 10,240 8,742
Depreciation and amortization........... 17,867 11,163 4,011 2,310 1,684
Impairment and restructuring charges.... 27,387 - - - -
----------- ----------- ----------- ----------- -----------
Total operating expenses................ 111,243 72,329 51,094 24,384 17,867

Loss from operations.................... (42,717) (4,226) (20,813) (7,446) (7,971)
Net interest income (expense)........... 1,710 3,126 2,245 (186) 60
Other income (expense).................. (1,060) - (5,713) (716) -
------------ ----------- ------------ ------------ ------------
Loss from continuing operations before
income taxes............................ (42,067) (1,100) (24,281) (8,348) (7,911)
Income tax expense...................... 668 95 1,030 276 7
----------- ----------- ----------- ----------- -----------
Loss from continuing operations......... (42,735) (1,195) (25,311) (8,624) (7,918)
Discontinued operations................. - - 332 (214) (1,087)
------------ ----------- ----------- ------------ ------------
Net loss................................ $ (42,735) $ (1,195) $ (24,979) $ (8,838) $ (9,005)
============ ============ ============ ============ ============

Basic and diluted loss from continuing
operations per share.................... $ (1.33) $ (0.04) $ (1.17) $ (1.49) $ (1.46)
============= ============= ============= ============= =============
Basic and diluted net loss per share.... $ (1.33) $ (0.04) $ (1.15) $ (1.51) $ (1.62)
============= ============= ============= ============= =============

Shares used in calculating net loss
per share -- basic and diluted.......... 32,162,000 30,260,000 22,688,000 7,610,000 6,892,000
============= ============= ============= ============= =============

Years Ended December 31,
------------------------
2001 2000 1999 1998 1997
---- ---- ---- ---- ----
(in thousands)

Balance Sheet Data:
Cash, cash equivalents and marketable
securities.............................. $ 41,798 $ 45,730 $ 39,117 $ 24,171 $ 11,007
Working capital......................... 46,912 54,579 37,519 21,958 8,882
Total assets............................ 134,886 174,521 65,600 33,183 18,542
Deferred revenues....................... 9,058 10,533 5,691 3,376 2,003
Long-term debt.......................... - 84 193 403 762
Convertible preferred stock............. - - - 59,860 37,234
Total stockholders' equity (deficit).... 114,266 146,125 47,200 (34,123) (25,111)

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

THE FOLLOWING DISCUSSION OF THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF
MULTEX SHOULD BE READ IN CONJUNCTION WITH THE CONSOLIDATED FINANCIAL STATEMENTS
AND THE NOTES TO THOSE STATEMENTS INCLUDED ELSEWHERE HEREIN. THIS DISCUSSION
CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES AND ARE
MADE UNDER THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995. WORDS SUCH AS "ANTICIPATES," "EXPECTS," "INTENDS," "PLANS,"
"BELIEVES," "SEEKS," "ESTIMATES," AND SIMILAR EXPRESSIONS IDENTIFY SUCH
FORWARD-LOOKING STATEMENTS. MULTEX'S ACTUAL RESULTS AND TIMING OF CERTAIN EVENTS
COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN THESE FORWARD-LOOKING
STATEMENTS AS A RESULT OF CERTAIN FACTORS, INCLUDING, BUT NOT LIMITED TO, THOSE
SET FORTH UNDER "RISK FACTORS THAT MAY AFFECT FUTURE RESULTS" AND ELSEWHERE
HEREIN. UNLESS REQUIRED BY LAW, MULTEX UNDERTAKES NO OBLIGATION TO UPDATE
FORWARD-LOOKING STATEMENTS. READERS SHOULD ALSO CAREFULLY REVIEW THE RISK
FACTORS SET FORTH IN OTHER REPORTS AND DOCUMENTS MULTEX FILES FROM TIME TO TIME
WITH THE SECURITIES AND EXCHANGE COMMISSION.

OVERVIEW

Multex.com, Inc. is a global provider of investment information and technology
solutions for the financial services industry, including brokerage firms,
professional money management firms, hedge funds, venture capital firms, mutual
funds, investment banks, corporations and individual investors. We offer four
main products, as follows:

o MultexNET, launched in June 1996, provides access to real-time, commingled
equity and fixed income research, global earnings and revenue estimates and
company fundamental information to buyside investors, sellside
institutions, public and private corporations and libraries of professional
service firms;

o MultexEXPRESS, launched in January 1997, offers the development, hosting
and real-time distribution of research and other investment information on
customized Web sites to buyside investments firms, sellside institutions
and other financial services companies;

o Multex Investor, launched in November 1998, is the Company's financial
destination Web site that provides financial data and access to free and
pay-per-view research on an embargoed basis;

o Market Guide database, acquired in September 1999, provides investment
information products to financial institutions and Web sites, institutional
investors, corporations and professional vendors.

MultexNET is offered either as a one- to three-year subscription or on a
transactional basis. The product allows entitled institutional investors,
corporations, financial institutions and advisors to access full-text investment
research reports on a real-time basis from investment banks, brokerage firms and
other third- party research providers over the Internet or through other
distribution channels.

MultexEXPRESS is also offered pursuant to one to three year subscriptions,
generating revenue from professional service and license fees. MultexEXPRESS
enables financial institutions to distribute their proprietary financial
research, as well as other corporate documents, over the Internet, through
intranets and other private networks.

Multex Investor provides individual investors who register as members access to
a range of financial reports and services online from a majority of the
contributors to MultexNET. These reports are available either free of charge, or
for a fee determined by the research provider. Multex Investor generates
revenues from sales transactions, email and banner advertising, and contractual,
lead-generating sponsorships. Sponsors to Multex Investor include full-service
brokerage firms and other financial institutions interested in attracting
individual investors to their products, services and brands.

Market Guide acquires, integrates, condenses and publishes accurate, timely and
objective financial, descriptive and other information on public corporations.
Market Guide generates revenue primarily by licensing its database in single or
multi-year contracts.

GENERAL

In September 1999, Multex acquired Market Guide Inc. in a transaction accounted
for as a pooling of interests. The consolidated statement of operations for the
year ended December 31, 1999 includes the calendar results of operations for
Multex and Market Guide for the year ended December 31, 1999.

RESULTS OF OPERATIONS

The following table shows the percentage of total revenues represented by the
items in our consolidated statements of operations.

YEARS ENDED DECEMBER 31,
2001 2000 1999
------ ------ ------

Revenues 100% 100% 100%
Performance-based warrants -3.0% -- --
------ ------ ------
Net revenues 97.0% 100% 100%
Cost of revenues -26.1% -20.8% -25.9%
------ ------ ------
Gross profit 70.9% 79.2% 74.1%
Operating expenses:
Sales and marketing 26.8% 30.3% 64.6%
Research and development 8.3% 11.8% 15.4%
General and administrative 33.2% 29.1% 35.3%
Depreciation and amortization 18.5% 13.0% 9.8%
Impairment and restructuring charges 28.3% -- --
------ ------ ------
Total operating expenses 115.1% 84.2% 125.1%
Loss from operations -44.2% -4.9% -50.9%
Other income (expense):
Net interest income 1.7% 3.6% 5.5%
Other income (expense) -1.0% -- 14.0%
------ ------ ------
Loss from continuing operations before income taxes -43.5% -1.3% -59.4%
Income tax expense 0.7% 0.1% 2.5%
------ ------ ------
Loss from continuing operations -44.2% -1.4% -62.0%
Discontinued operations -- -- 0.9%
------ ------ ------
Net loss -44.2% -1.4% -61.1%
Redeemable preferred stock dividends -- -- -2.9%
------ ------ ------
Net loss attributable to common shareholders -44.2% -1.4% -64.1%
====== ====== ======

YEAR ENDED DECEMBER 31, 2001 COMPARED TO YEAR ENDED DECEMBER 31, 2000

Revenues

Multex's gross revenues consist of subscription fees for MultexNET, sales of
investment research on a pay-per-view basis through Multex OnDemand,
subscription, development, hosting and license fees for MultexEXPRESS, license
and redistribution fees for the Market Guide database, and sales of
sponsorships, advertising and investment research through the Multex Investor
Web site. We also provide professional services to select MultexEXPRESS clients,
including software development, customization and integration services.

Gross revenues increased 12.4% to $96.6 million for the year ended December 31,
2001 from $85.9 million for the year ended December 31, 2000. The increase in
revenues reflects increased revenues in all product lines except for Multex
Investor, which declined 26%, reflecting a sharp decline in advertising revenue.

MultexEXPRESS revenue increased 24% for the year ended December 31, 2001,
reflecting an increase in hosting and maintenance fees resulting from a larger
client base, partially offset by a decrease in revenue resulting from
cancellations from certain customers in the first quarter of 2001.

MultexNET sales increased 10% for the year ended December 31, 2001. The increase
in MultexNET sales was primarily attributable to the steady increase in the
MultexNet subscription business, partially offset by declining OnDemand report
sales in the second half of fiscal 2001. The OnDemand transaction business has
the greatest sensitivity to uncertainty in the global financial marketplace. We
believe the OnDemand business will improve as the global financial markets
stabalize and investment banking activity improves.

Multex Investor experienced a 26% decline in year over year revenue growth for
the year ended December 31, 2001. The revenue declines for the year reflect the
global slowdown in the financial markets coupled with lower advertising revenue.
However, the fourth quarter of 2001 witnessed a 28% increase in MultexInvestor
revenue on a sequential basis. This reflected an increase in transaction
revenues and increased advertising revenue as advertisers target sites with our
demographics.

Market Guide revenues increased 35% on a year over year basis for the fiscal
year ended December 31, 2001. This primarily resulted from the inclusion of the
Multex Global Estimates (formerly Barra Global Estimates) business, which was
acquired in December 2000. Market Guide revenues were negatively impacted by
customers declaring bankruptcy or experiencing financial difficulties, which
resulted in terminations of many agreements and price renegotiations.

All of the Company's product lines were negatively affected by the terrorist
attacks on September 11, 2001 and by the continued weakness in the global
financial markets. However, fourth quarter revenues reversed two quarters of
declining revenues - registering a 5% increase in sequential revenues when
compared to the third quarter of 2001.

For the year ended December 31, 2001, the Company recorded performance-related
warrant charges totaling $2.9 million associated with warrants issued to Merrill
Lynch & Co., Inc. The Company has classified this non-cash expense as
contra-revenue, thereby lowering the Company's net revenue. The
performance-based warrant charges will continue to be recorded by the Company in
each period that warrants are earned by Merrill Lynch. There were no
performance-based warrant charges in the year ended December 31, 2000.

Cost of Revenues

Cost of revenues consist primarily of fees payable to distributors of MultexNET
and Multex OnDemand, royalties payable to the authors of investment research and
content offered through Multex OnDemand, and the Multex Investor and Market
Guide web sites, internal and external development costs incurred for
MultexEXPRESS customers, research department costs related to the collection and
processing of financial data and global earnings estimates, and data
communications costs.

Cost of revenues increased 41.1% to $25.2 million for the year ended December
31, 2001 from $17.8 million for the year ended December 31, 2000. As a
percentage of gross revenues, cost of revenues increased to 26.1% for the year
ended December 31, 2001 from 20.8% for the year ended December 31, 2000. The
increase in cost of revenues was primarily due to the inclusion of data
collection costs related to the Global Estimates business, higher
telecommunication costs resulting from our new data center and costs associated
with customization work related to development and enhancements of MultexEXPRESS
sites.

Operating Expenses

SALES AND MARKETING. Sales and marketing expenses consist primarily of salaries,
commissions, advertising, public relations, tradeshow expenses and costs of
marketing materials. Sales and marketing expenses decreased 0.4% to $25.9
million for the year ended December 31, 2001 from $26.0 million for the year
ended December 31, 2000. As a percentage of gross revenues, sales and marketing
expenses decreased to 26.8% for the year ended December 31, 2001 from 30.3% for
the year ended ended December 31, 2000. The decrease in sales and marketing
expenses was primarily due to lower advertising and marketing promotions offset
in part by an increase in sales commissions resulting from an increase in gross
revenues.

RESEARCH AND DEVELOPMENT. Research and development expenses consist primarily of
salaries and benefits. Research and development expenses decreased 21.1% to $8.0
million for the year ended December 31, 2001 from $10.1 million for the year
ended December 31, 2000. As a percentage of gross revenues, research and
development

expenses decreased to 8.3% for the year ended December 31, 2001 from 11.8% for
the year ended December 31, 2000. The decrease in research and development
expenses in dollar terms was primarily attributable to an increase in the number
of internally developed software projects being capitalized in accordance with
SOP 98-1, ACCOUNTING FOR THE COSTS OF COMPUTER SOFTWARE DEVELOPED OR OBTAINED
FOR INTERNAL USE as well as a decline in the number of developers on staff.
Total costs capitalized in accordance with SOP 98-1 was approximately $2.8
million for the year ended December 31, 2001 and $150,000 for the year ended
December 31, 2000.

GENERAL AND ADMINISTRATIVE. General and administrative expenses consist
primarily of salaries and benefits, fees for professional services and
consultants, facility expenses, overhead, and office supplies and expenses.
General and administrative expenses increased 28.3% to $32.1 million for the
year ended December 31, 2001 from $25.0 million for the year ended December 31,
2000. As a percentage of gross revenues, general and administrative expenses
increased to 33.2% for the year ended December 31, 2001 from 29.1% for the year
ended December 31, 2000. Growth in general and administrative expenses reflects
an increase in compensation expense, higher bad debt reserves, and increased
professional fees related to development, legal and tax services. Additionally,
the fiscal year ended December 31, 2001 included recognition of operating
expenses related to the BARRA Global Estimates business. The BARRA Global
estimates acquisition was consummated in December 2000.

DEPRECIATION AND AMORTIZATION. Depreciation and amortization expenses consist
primarily of depreciation related to fixed assets, computer equipment and
software, and leasehold improvements, and amortization related to recently
acquired companies and the cost of warrants issued to Merrill Lynch & Co., Inc.
Depreciation and amortization for the fiscal year ended December 31, 2001
increased 60.1% to $17.9 million, compared to $11.2 million for the fiscal year
ended December 31, 2000. As a percentage of gross revenues, depreciation and
amortization expenses increased to 18.5% for the year ended December 31, 2001
from 13.0% for the year ended December 31, 2000. The increase reflects
amortization related to the BARRA Global estimates business acquired in December
2000 and increased depreciation and amortization expenses associated with
additional computer purchases and leasehold improvements related to the new data
center beginning operations in the first quarter of 2001.

IMPAIRMENT AND RESTRUCTURING CHARGES. For the fiscal year ended December 31,
2001, the Company recorded a $27.4 million charge related to impairment and
restructuring charges. The impairment charge was incurred in the quarter ended
June 30, 2001 and totaled $25.6 million reflecting the decision by management to
exit the Sage Online business and the BuzzCompany product line. Components of
this charge included $25.4 million reduction to goodwill and $0.2 million
write-off of property and equipment.

The restructuring charge was incurred in the quarter ended September 30, 2001
and totaled $1.8 million, reflecting the decision by management to reduce its
cost structure to better match its current and anticipated revenue levels, and
to refocus its sales and marketing campaigns. Components of this charge
included, (i) cash charges of approximately $0.8 million for involuntary
termination and severance benefits for approximately 100 employees (ii) non-cash
charges of approximately $0.4 million for termination of marketing contracts
associated with the Sage Online business and (iii) non-cash charges of $0.6
million for termination of an operating lease and related writedown of leasehold
improvements at a New York City location.

Loss from Continuing Operations

Loss from continuing operations totaled $42.7 million for the year ended
December 31, 2001 compared to a loss from continuing operations of $1.2 million
for the year ended December 31, 2000. Loss from continuing operations reflects
approximately $27.4 million in impairment and restructuring charges and higher
operating expenses.

Interest Income (Expense)

Net interest income decreased 45.3% to $1.7 million for the year ended December
31, 2001 from $3.1 million for the year ended December 31, 2000. The decrease in
net interest income is primarily attributable to a decline in interest rates and
a lower cash balance.

Equity in Loss from Unconsolidated Business

Equity in loss of unconsolidated business reflects a $930,000 loss the Company
recognized from its equity

investment in TheMarkets.com LLC. This investment was completed in the quarter
ended September 30, 2001. There were no comparable transactions in the fiscal
year ended December 31, 2000.

Income Taxes

Income tax expense totaled $668,000 for the fiscal year ended December 31, 2001
compared to income taxes of $95,000 for the year ended December 31, 2000. Income
tax expense for the year ended December 31, 2001 consists of state and local
franchise taxes of $387,000, federal alternative minimum tax of $81,000, and an
income tax audit provision of $200,000.

At December 31, 2001, Multex had net operating loss carryforwards of
approximately $63.2 million and research and development credits of
approximately $2.3 million for income tax purposes that expire in 2009 through
2020. The utilization with regard to timing and amount of the Company's net
operating loss carryforwards may be limited due to changes in the Company's
ownership pursuant to Section 382 of the Internal Revenue Code.

Net loss

The Company recorded a net loss of $42.7 million, or a net loss per share of
$1.33, for the fiscal year ended December 31, 2001 compared to net loss of $1.2
million, or a net loss per share of $0.04, for the year ended December 31, 2000.
The net loss reflects the global slowdown in the financial marketplace, higher
cost of revenue and operating expenses, impairment and restructuring charges,
lower interest income, and the equity loss from an unconsolidated business.

YEAR ENDED DECEMBER 31, 2000 COMPARED TO YEAR ENDED DECEMBER 31, 1999

Revenues

Revenue from MultexNET subscriptions is recognized in equal installments over
the term of the subscription. Revenue from transactions on MultexNET and Multex
Investor are recognized upon sale. Some of the transactional users of MultexNET
pay a flat annual fee for the service, which entitles them to receive research
and other reports at a discounted rate. Revenues from these users are recognized
in equal installments over the term of the subscription. Revenue from
sponsorships to Multex Investor is recognized in equal installments over the
term of the sponsorship. Revenue from professional service fees related to
MultexEXPRESS is recognized upon completion of service, whereas the license fees
are recognized over the term of the agreement. Market Guide license fees are
recognized over the term of the agreement.

Multex's revenues consist of subscription fees for MultexNET, subscription,
development and hosting fees for MultexEXPRESS, sales of investment research on
a pay-per-view basis through Multex Research-On-Demand, license and
redistribution fees for the Market Guide database, and sales of sponsorships,
advertising and investment research through the Multex Investor and Market Guide
Web sites. We also provide professional services to select MultexEXPRESS
clients, including software development, customization and integration services.
On occasion, as a service to our clients, we have acquired equipment for resale.

Revenues increased 110% to $85.9 million for the year ended December 31, 2000
from $40.9 million for the year ended December 31, 1999. The increase in
revenues was attributable to a number of factors: a significant increase in the
number of institutions and individuals using our pay-per-view service, an
increase in companies subscribing to MultexNET, an increase in the number of
installations utilizing MultexEXPRESS to distribute their proprietary research
to their employees and customers, an increase in the number of vendors
distributing the Market Guide database, and increased advertising and
sponsorship revenues from the Multex Investor and Market Guide Web sites.
Additionally, revenue reflects the inclusion of approximately nine months of
sales from Sage Online, approximately seven months of sales from Buzz Company,
and less than one month of revenue from the BARRA estimates business.

Cost of Revenues

Cost of revenues consists primarily of fees payable to distributors of MultexNET
and Multex Research-On-Demand, royalties payable to the authors of investment
research and content offered through Multex Research-On-Demand, Multex Investor
and marketguide.com, internal and external development costs incurred for
MultexEXPRESS customers, research department costs related to the collection and
processing of financial data and earnings estimates, purchases of equipment for
resale and data communications costs.

Cost of revenues increased 68.8% to $17.8 million in the year ended December 31,
2000 from $10.6 million for the year ended December 31, 1999. As a percentage of
revenues, cost of revenues decreased to 20.8% for the year ended December 31,
2000 from 25.9% for the year ended December 31, 1999. The increase in cost of
revenues in dollar terms was primarily due to royalty and distribution fee
payments as a result of increased sales of Multex Research-On-Demand, increased
data collection costs related to the maintenance and enhancement of the Market
Guide database, growth in web site traffic resulting in increased royalty
payments to content providers, increased Web site development costs resulting
from the increased number of MultexEXPRESS installations, and additional data
communications charges resulting from increased sales of subscriptions for
MultexNET and installations of MultexEXPRESS.

Operating Expenses

SALES AND MARKETING. Sales and marketing expenses consist primarily of salaries,
commissions, advertising, public relations, tradeshow expenses and costs of
marketing materials. Sales and marketing expenses decreased 1.4% to $26.0
million for the year ended December 31, 2000 from $26.4 million for the year
ended December 31, 1999. As a percentage of revenues, sales and marketing
expenses decreased to 30.3% for the year ended December 31, 2000 from 64.6% for
the year ended December 31, 1999. The decrease in sales and marketing expenses
reflect a sharp reduction in advertising expense combined with a favorable
adjustment to the accounting for sales commission expense due to a change in
facts and circumstances.

RESEARCH AND DEVELOPMENT. Research and development expenses consist primarily of
salaries and benefits. Research and development expenses increased 61.1% to
$10.1 million for the year ended December 31, 2000 from $6.3 million for the
year ended December 31, 1999. As a percentage of revenues, research and
development expenses decreased to 11.8% for the year ended December 31, 2000
from 15.4% for the year ended December 31, 1999. The increase in research and
development expenses in dollar terms was primarily due to an increase in the
number of developers employed by us, salary increases, and costs related to
creating and developing new products and enhancements.

GENERAL AND ADMINISTRATIVE. General and administrative expenses consist
primarily of salaries and benefits, fees for professional services and facility
expenses. General and administrative expenses increased 73.6% to $25.0 million
for the year ended December 31, 2000 from $14.4 million for the year ended
December 31, 1999. As a percentage of revenues, general and administrative
expenses decreased to 29.1% for the year ended December 31, 2000 from 35.3% for
the year ended December 31, 1999. The increase in general and administrative
expenses in dollar terms in each period was primarily due to increased
personnel, professional service fees and facility expenses necessary to support
our domestic and international growth.

DEPRECIATION AND AMORTIZATION. Depreciation and amortization expenses consist
primarily of depreciation related to fixed assets, computer equipment and
software, and leasehold improvements, and amortization related to recently
acquired companies and the ongoing cost of warrants issued to Merrill Lynch &
Co., Inc. Depreciation and amortization for the fiscal year ended December 31,
2000 increased 178.3% to $11.2 million, compared to $4.0 million for the fiscal
year ended December 31, 1999. As a percentage of gross revenues, depreciation
and amortization expenses increased to 13.0% for the year ended December 31,
2000 from 9.8% for the year ended December 31, 1999. The increase reflects $2.1
million in expenses related to the amortization of warrants and $2.9 million in
amortization of intangibles and goodwill related to the acquisitions of Sage
Online, Buzz Company and Barra Global Estimates. There was no comparable
amortization in 1999.

Loss from Operations

As a result of increased sales coupled with tighter cost control measures, loss
from operations decreased 79.7% to $4.2 million for the year ended December 31,
2000 from $20.8 million for the year ended December 31, 1999. As a percentage of
revenues, loss from operations was 4.9% for the year ended December 31, 2000
compared to 51.0% for the year ended December 31, 1999.

Other Income (expense)

Net interest income increased 39.2% to $3.1 million for the year ended December
31, 2000 from $2.2 million for the year ended December 31, 1999. The increase
relates to additional cash from the sale of common stock.

For the year ended December 31, 1999, Multex recorded $5.7 million in expenses
related to the September 1999 acquisition of Market Guide Inc. The majority of
these expenses related to fees for investment bankers, outside counsel,
accountants, proxy solicitors, document preparation and other costs related to
consummating the acquisition. There was no comparable transaction during the
year ended December 31, 2000.

Income Taxes

At December 31, 2000, Multex had net operating loss carryforwards of
approximately $50.0 million and research and development credits of
approximately $1.5 million for income tax purposes that expire in 2009 through
2020. The utilization with regard to timing and amount of the Company's net
operating loss carryfowards may be limited due to changes in the Company's
ownership pursuant to Section 382 of the Internal Revenue Code.

Income tax expense decreased 90.8% to $95,000 for the year ended December 31,
2000 from $1.0 million for the year ended December 31, 1999. The majority of
income tax expense recognized for the year ended December 31, 1999 relates to
Market Guide's operations prior to the September 1999 acquisition.

Loss from continuing operations

Loss from continuing operations decreased 95.3% to $1.2 million for the year
ended December 31, 2000 from $25.3 million for the year ended December 31, 1999.
The decrease in loss from continuing operations was due to higher revenues,
reflecting an increased customer base and tighter cost control measures.

Discontinued operations

Income from discontinued operations and gain from sale of discontinued
operations totaled $332,000 in the year ended December 31, 1999, reflecting
Market Guide's sale of CreditRisk Monitor to New Generation Foods in January
1999. There was no comparable transaction in the year ended December 31, 2000.

Net loss attributable to common stockholders

As a result of increased sales coupled with tighter cost control measures, net
loss decreased 95.4% to $1.2 million for the year ended December 31, 2000 from
$26.2 million for the year ended December 31, 1999.

SELECTED UNAUDITED QUARTERLY RESULTS OF OPERATIONS

The following table sets forth unaudited quarterly statement of operations data
for each of the eight quarters ended December 31, 2001. In the opinion of
management, the unaudited financial results include all adjustments, consisting
only of normal recurring adjustments, necessary for the fair presentation of our
consolidated results of operations for those periods. The consolidated quarterly
data should be read in conjunction with the audited Consolidated Financial
Statements and the Notes thereto appearing elsewhere in this report. The results
of operations for any quarter are not necessarily indicative of the results of
operations for any future period.

THREE MONTHS ENDED
----------------------------------------------------------------------------------
MAR. JUNE SEPT. DEC. MAR. JUNE SEPT. DEC.
31, 30, 30, 31, 31, 30, 30, 31,
2000 2000 2000 2000 2001 2001 2001 2001
------- ------- ------- ------- ------- ------- ------- -------
(IN THOUSANDS, EXCEPT PER SHARE DATA)

Gross revenues .............................. $16,083 $19,167 $22,823 $27,869 $29,504 $23,522 $21,314 $22,275
Performance-based warrants .................. -- -- -- -- -- (1,075) (821) (1,019)
------- ------- ------- ------- ------- ------- ------- -------
Net revenues ................................ 16,083 19,167 22,823 27,869 29,504 22,447 20,493 21,256
Cost of revenues ............................ 3,968 3,936 4,162 5,773 5,713 7,187 6,371 5,903
------- ------- ------- ------- ------- ------- ------- -------

Gross profit ................................ 12,115 15,231 18,661 22,096 23,791 15,260 14,122 15,353
Operating expenses:
Sales and marketing ....................... 6,240 5,917 6,568 7,292 6,716 7,738 6,018 5,449
Research and development .................. 2,255 2,767 2,773 2,354 2,606 1,961 1,599 1,837
General and administrative ................ 4,691 5,440 6,740 8,129 8,178 8,779 7,307 7,801
Depreciation and amortization ........... 1,656 2,848 3,261 3,398 3,752 4,912 4,658 4,545
Impairment and restructuring ............ -- -- -- -- -- 25,641 1,746 --
------- ------- ------- ------- ------- ------- ------- -------
Total operating expenses ................ 14,842 16,972 19,342 21,173 21,252 49,031 21,328 19,632
------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from operations ............... (2,727) (1,741) (681) 923 2,539 (33,771) (7,206) (4,279)
Net interest income ......................... 697 616 883 930 566 494 409 241
Other income (expenses) ..................... -- -- -- -- -- (173) (807) (80)
------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from operations
before income tax ......................... (2,030) (1,125) 202 1,853 3,105 (33,450) (7,604) (4,118)
Income tax expense .......................... 47 48 (8) 8 90 290 75 213
------- ------- ------- ------- ------- ------- ------- -------
Net income (loss) ........................... $(2,077) $(1,173) $ 210 $ 1,845 $ 3,015 $(33,740) $(7,679) $(4,331)
======= ======= ======= ======= ======= ======= ======= =======

Basic and diluted income
(loss) - per share ........................ $ (0.07) $ (0.04) $ 0.01 $ 0.06 $ 0.09 $ (1.05) $ (0.24) $ (0.13)
======= ======= ======= ======= ======= ======= ======= =======

PERCENTAGE OF TOTAL REVENUES
Gross revenues .............................. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Performance-based warrants .................. -- -- -- -- -- (4.6) (3.9) (4.6)
------- ------- ------- ------- ------- ------- ------- -------
Net revenues ................................ 100.0 100.0 100.0 100.0 100.0 95.4 96.1 95.4
Cost of revenues ............................ 24.7 20.5 18.2 20.7 19.4 30.6 29.9 26.5
------- ------- ------- ------- ------- ------- ------- -------
Gross profit ................................ 75.3 79.5 81.8 79.3 80.6 64.9 66.3 68.9
Operating expenses:
Sales and marketing ....................... 38.8 30.9 28.8 26.2 22.8 32.9 28.2 24.5
Research and development .................. 14.0 14.4 12.2 8.4 8.8 8.3 7.5 8.2
General and administrative ................ 29.2 28.4 29.5 29.2 27.3 37.3 34.3 35.0
Depreciation and amortization ........... 10.3 14.9 14.3 12.2 13.1 20.9 21.9 20.4
Impairment and restructuring ............ -- -- -- -- -- 109.0 8.2 --
------- ------- ------- ------- ------- ------- ------- -------
Total operating expenses .............. 92.3 88.5 84.8 76.0 72.0 208.4 100.1 88.1
------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from operations ............... (17.0) (9.0) (3.0) 3.3 8.6 (143.6) (33.8) (19.2)
Net interest income (expense) ............... 4.4 3.2 3.9 3.3 1.9 2.1 1.9 1.1
Other income (expenses) ..................... -- -- -- -- -- (0.7) (3.8) (0.4)
------- ------- ------- ------- ------- ------- ------- -------
Income (loss) from operations
before income tax ......................... (12.6) (5.8) 0.9 6.6 10.5 (142.2) (35.7) (18.5)
Income tax expense .......................... 0.3 0.3 (0.0) 0.0 0.3 1.2 0.4 1.0
------- ------- ------- ------- ------- ------- ------- -------
Net income (loss) ........................... (12.9)% (6.1)% 0.9% 6.6% 10.2% (143.4)% (36.0)% (19.4)%
======= ======= ======= ======= ======= ======= ======= =======

Our quarterly revenues, margins and results of operations have fluctuated
significantly in the past and are expected to continue to fluctuate
significantly in the future. Causes of these fluctuations have included and may
include, among other factors, demand for our services, the size and timing of
both new and renewal subscriptions, the number, timing and significance of new
services introduced by us and our competitors, our ability to develop, market
and introduce new and enhanced services on a timely basis, the level of service
and price competition, changes in operating expenses, changes in the mix of
services offered, changes in our sales incentive strategy, sharp declines in the
volume or price levels of securities transactions and general economic factors.
Any one or more of these factors could have a material and adverse effect on our
business, results of operation and financial condition, and makes the prediction
of results of operations on a quarterly basis unreliable.

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2001, we had $41.8 million of cash, cash equivalents and
marketable securities, a decrease of $3.9 million from December 31, 2000.

Net cash provided by operating activities was $7.9 million for the year ended
December 31, 2001, compared to net cash used in operating activities of $4.3
million for the year ended December 31, 2000.

Net cash provided by operating activities for the year ended December 31, 2001
consisted of the Company's net loss of $42.7 million reduced by its noncash
expenses of $51.9 million, decreases in accounts receivable of $6.6 million and
current and other assets of $0.4 million, offset in part by a reduction in
accounts payable and accrued expenses of $6.8 million, and deferred revenue and
other liabilities of $1.5 million. The Company's noncash expenses include
depreciation and amortization of $19.8 million, performance based warrant
charges of $2.9 million, impairment and restructuring charges of $26.6 million
and bad debt expense of $2.6 million.

Net cash used in operating activities for the year ended December 31, 2000
consisted of the Company's net loss of $1.2 reduced by noncash expenses of $13.4
million, including depreciation and amortization of $11.6 million and bad debt
expense of $1.0 million. In addition, net cash was reduced by increases in
accounts receivable of $16.6 million and current and other assets of $4.1
million, offset in part by an increase in accounts payable and accrued expenses
of $0.9 million and an increase in deferred revenue of $3.4 million.

During the year ended December 31, 2001 net cash of $9.9 million was provided by
investing activities. This amount includes net proceeds from sales and purchases
of marketable securities of $24.5 million and proceeds from sale of investment
of $1.0 million offset by purchases of property and equipment of $15.6 million.
During the year ended December 31, 2000 net cash of $37.4 million was used by
investing activities. This amount includes acquisitions of three companies for
$20.3 million, and purchases of property and equipment of $25.0 million, offset
in part by net proceeds from sales and purchases of marketable securities of
$7.9 million.

During the year ended December 31, 2001, net cash of $2.8 million was provided
by financing activities. This amount primarily includes proceeds from the sales
of securities from our employee stock purchase plan and our stock option plan.
During the year ended December 31, 2000, net cash of $56.0 million was provided
by financing activities. This amount consisted of proceeds from sale of stock to
Merrill Lynch and The Munder NetNet Fund, and from our employee stock purchase
program and stock option plan.

Our principal commitments consist of obligations outstanding under lease
agreements for offices. The total approximate future minimum annual rental
payments under these leases are as follows: (expressed in 000's)

2002........................................................ $4,611
2003........................................................ 4,581
2004........................................................ 4,558
2005........................................................ 4,519
2006........................................................ 3,022
Thereafter.................................................. 9,388
-------
$30,679
=======

In addition, under certain circumstances we may be required to provide
additional funding for an investment that we account for under the equity
method.

We believe that our existing cash, cash equivalents and marketable securities
balances will be sufficient to meet our anticipated cash needs for working
capital and capital expenditures for at least the next twelve months.

RECENT ACCOUNTING PRONOUNCEMENTS

We continue to assess the effects of recently issued accounting standards. The
impact of all recently adopted and issued accounting standards has been
disclosed in the footnotes to the audited consolidated financial statements.

CRITICAL ACCOUNTING POLICIES

We consider accounting policies related to revenue recognition, and impairment
of long-lived assets to be critical due to the estimation process involved.

REVENUE RECOGNITION

Pursuant to Staff Accounting Bulletin (SAB) 101, "Revenue Recognition in
Financial Statements", we recognize revenue when a signed contract exists, the
fee is fixed and determinable, delivery has occurred and collection of the
resulting receivable is probable. For contracts with multiple elements (e.g.,
website development services, hosting services and computer equipment), we
allocate revenue to each element of the contract based on objective evidence of
the element's fair value. Our MultexEXPRESS business frequently includes
multiple elements including website development, hosting fees and access to our
broker research. If we do not accurately estimate the resources required for
each element or do not manage the projects properly within the appropriate
accounting periods, then revenue may not be recorded and recognized in the
appropriate accounting period.

IMPAIRMENT OF LONG -LIVED ASSETS

At December 31, 2001, our long-lived assets include $21.9 million of goodwill
and intangible assets. With regard to these assets, events that would cause us
to conduct an impairment assessment include significant losses of customers,
operating results of acquired businesses that continually failed to meet
management's performance expectations, and diminished utility of acquired
technology. In assessing the fair market value of goodwill and intangibles, we
must make assumptions regarding estimated future cash flows. If, after
conducting such assessment, indications of impairment are present in long-lived
assets, the estimated future undiscounted cash flows associated with the
corresponding assets would be compared to its carrying amounts to determine if a
change in useful life or a write-down to fair value is necessary. If these
estimates or related assumptions change, we may be required to record impairment
charges for these assets.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

CURRENCY RATE FLUCTUATIONS

Our results of operations, financial position, and cash flows are not materially
affected by changes in the relative values of non-U.S. currencies to the U.S.
dollar. We do not use derivative financial instruments to limit our foreign
currency risk exposure.

INTEREST RATE FLUCTUATIONS

Our results of operations, financial position, and cash flows are not materially
affected by changes in market interest rates. We have no long-term debt
obligations. We had $41.8 million in cash, cash equivalents and marketable
securities as of December 31, 2001.

RISK FACTORS THAT MAY AFFECT FUTURE RESULTS

MULTEX'S BUSINESS COULD BE MATERIALLY AND ADVERSELY AFFECTED BY THE CURRENT (OR
ANY FUTURE) DOWNTURN IN THE FINANCIAL SERVICES INDUSTRY

We are dependent upon the continued demand for the distribution of investment
research and other information over the Internet, which makes our business
susceptible to downturns in the financial services industry. Our current results
of operations reflect, in part, the effects of the current slowdown in our
markets. The September 11, 2001 terrorist attacks affected many of our customers
located in and around the World Trade Center, which, together with the broader
effects of the terrorist attacks, compounded the effects of an already slow
global economy. In addition, U.S. financial institutions are continuing to
consolidate, increasing the leverage of our information providers to negotiate
prices and decreasing the overall potential market for some of our services.
Weakness in the financial services industry has adversely impacted our
subscription renewal rates and may continue to do so. These effects may continue
and may worsen if our customers and clients do not recover or if additional
events adverse to the global economy or the financial services industry occur.

MULTEX.COM'S BUSINESS WOULD BE MATERIALLY AND ADVERSELY AFFECTED IF THE MARKET
FOR ONLINE INVESTMENT RESEARCH DOES NOT CONTINUE TO GROW

In order to be successful, we must increase our revenues from subscription fees
for MULTEXNET, and from development, hosting, license, and subscription fees for
MULTEXEXPRESS. We must generate additional sales of investment research on a
pay-per-view basis through MULTENET ONDEMAND, attract more users to and generate
more leads for our sponsors from MULTEX INVESTOR, and increase the total license
fees generated from the MARKET GUIDE database. Our recent results of operations
with respect to MULTEX INVESTOR reflect the adverse effects of lack of growth
(and even contraction) in certain of our markets. In order to accomplish our
objectives, we must:

o anticipate and adapt to the changing Internet and financial markets;

o attract and retain more subscribers, research and data contributors, and
technology and business partners;

o successfully execute our sales, marketing, and branding strategies, both
domestically and internationally;

o attract, retain and motivate qualified personnel;

o respond to actions taken by our competitors;

o continue to build an infrastructure to effectively manage our business and
handle any future changes in usage; and

o integrate acquired businesses, technologies, assets, products and services.

If we are unsuccessful in addressing these risks or in executing our business
strategy going forward, our business, results of operations, and financial
condition would be materially and adversely affected.

THE MARKETS FOR OUR PRODUCTS AND SERVICES CHANGE RAPIDLY

The market for the distribution of investment research and other information
over the Internet is rapidly evolving, and demand and market acceptance for
these services continue to be subject to a high level of uncertainty. The market
relating to retail investing has deteriorated considerably in the 18 months, and
all of our markets continue to face considerable uncertainty. It is difficult to
predict with any assurance the growth rate, if any, and the ultimate size, of
our markets. We cannot assure you that the markets for our services will
recover, will continue to develop, or that our services will ever achieve broad
market acceptance. If our customers are not able to recover from the effects of
the continued downturn in the global economy; if the market for our services
weakens further, develops more slowly than expected once recovery begins, or
becomes saturated with competitors; if our services do not achieve broad market
acceptance; or if pricing becomes subject to further competitive pressures, our
business, results of operations and financial condition would be materially and
adversely affected.

CUSTOMER CONCENTRATION

accounted for approximately 10.2%, 13.5% and 11.1% of revenues in fiscal 1999,
2000 and 2001, respectively. The loss of any significant customer, including
Merrill Lynch & Co., could have a material adverse affect on the Company's
business, financial condition and results of operations.

MULTEX'S BUSINESS COULD BE MATERIALLY AND ADVERSELY AFFECTED BY PRESSURES
OF COMPETITION

The market for the distribution of investment research and other information
over the Internet is intensely competitive. We currently face strong competition
in many of our markets. Increased competition could result in price reductions,
reduced gross margins and loss of market share, any of which could have a
material and adverse effect on our business, results of operations and financial
condition. We currently face direct and indirect competition for contributors of
investment research and other reports, and for subscribers, from large and
well-established distributors of financial information, such as Thomson
Financial Services. Some of our competitors enjoy exclusive distribution
arrangements with major financial institutions. We also compete with, among
others:

o companies that provide investment research, including investment banks and
brokerage firms, many of whom have their own Web sites;

o other providers of either free or subscription research and data services
on the Internet;

o services provided by some of our strategic distributors that are
competitive in one or more respects with our service offerings;

o prospective competitors that offer investment research-based services;

o various written publications, including traditional media, investment
newsletters, personal financial magazines and industry research appearing
in financial periodicals;

o services provided by in-house management information services personnel and
independent systems integrators;

o providers of reports filed under the Securities Exchange Act of 1934 and
other filings with the Securities and Exchange Commission;

o Standard & Poor's company-specific reports; and

o Value Line investment research reports.

Whether or not our competitors are successful, competition with these entities
or information sources, may materially and adversely affect our business,
results of operations, and financial condition. It is also possible that new
competitors may emerge and rapidly acquire significant market share.

THE LOSS OF ANY OF MULTEX'S KEY PERSONNEL COULD HAVE A MATERIAL AND
ADVERSE EFFECT

Our future success will depend, in substantial part, on the continued service of
our senior management team, none of whom has entered into an employment
agreement with us other than a non-competition/non-disclosure agreement. The
loss of the services of one or more of our key personnel could have a material
and adverse effect on our business, results of operations and financial
condition. We have from time to time in the past experienced, and we expect to
continue to experience in the future, difficulty in hiring and retaining highly
skilled employees with appropriate qualifications.

DOING BUSINESS INTERNATIONALLY SUBJECTS US TO ADDITIONAL REGULATORY
REQUIREMENTS, TAX LIABILITIES AND OTHER RISKS

There are risks inherent in doing business in international markets, including
unexpected changes in regulatory requirements, potentially adverse tax
consequences, export restrictions and controls, tariffs and other trade
barriers, difficulties in staffing and managing foreign operations, political
instability, fluctuations in currency exchange rates, and seasonal reductions in
business activity during the summer months in Europe and various other parts of
the world, any of which could have a material and adverse effect on the success
of our international operations and, consequently, on our business, results of
operations and financial condition. Furthermore, we cannot assure you that
governmental regulatory agencies in one or more foreign countries will not
determine that the services provided by us constitute the provision of
investment advice, which could result in our having to register in these
countries as an investment advisor or in our having to cease selling our
services in these countries, either of which could have a material and adverse
effect on our business, results of operations and financial condition.

MULTEX'S RECOVERY FROM THE SEPTEMBER 11TH TERRORIST ATTACKS MAY NOT PROCEED
AS EXPECTED

Multex has allocated significant resources to its recovery efforts resulting
from the aftermath of the September 11, 2001 terrorist attacks. We may continue
to incur significant additional expenses as a result of increased security
requirements, loss of personnel, and other related costs. In addition, many of
Multex's customers are still in the midst of efforts to recover from the
attacks. Those efforts may or may not be successful, or may happen more slowly
than anticipated.

BECAUSE MULTEX'S BUSINESS IS DEPENDENT UPON NETWORK AND COMPUTER SYSTEMS LOCATED
IN ONE AREA, WE ARE SUSCEPTIBLE TO PROBLEMS CAUSED BY NATURAL DISASTERS,
TERRORIST ATTACKS, POWER FAILURES, SYSTEM FAILURES, SECURITY BREACHES OR OTHER
DAMAGE TO OUR SYSTEM

Our electronic distribution of investment research utilizes proprietary
technology that resides principally in New York City. The continued and
uninterrupted performance of our network and computer systems is critical to our
success. There can be no assurance that such solutions can be implemented in a
timely and cost-effective manner, or at all. Any natural disaster, attack, power
outage or system failure that causes interruptions in our ability to provide our
services to our customers, including failures that affect our ability to collect
research from our information providers or provide electronic investment
research to our users, could reduce customer satisfaction and, if sustained or
repeated, would reduce the attractiveness of our services. An increase in the
volume of research reports handled by our systems, or in the rate of requests
for this research, could strain the capacity of our software or hardware, which
could lead to slower response times or system failures. Furthermore, we face the
risk of a security breach of our systems that could disrupt the distribution of
research and other reports and information. Our business, results of operations
and financial condition could be materially and adversely affected if any of
these problems occur or recur.

Our operations are dependent on our ability to protect our network and computer
systems against damage from computer viruses, fire, power loss, data
communications failures, vandalism and other malicious acts, and similar
unexpected adverse events, such as the September 11, 2001 terrorist attacks. We
continue to devote resources towards our recovery from the September 11, 2001
disaster and protecting our infrastructure against any similar disaster in the
future. In addition, the failure of our communications providers to provide the
data communications capacity in the time frame required by us, as occurred, for
example, in the aftermath of the September 11th attacks, could again cause
interruptions in the delivery of our services.

THE MARKET PRICE OF OUR SHARES MAY EXPERIENCE EXTREME PRICE AND
VOLUME FLUCTUATIONS

The stock market has, from time to time, experienced extreme price and volume
fluctuations. The market prices of the securities of Internet-related companies
have been especially volatile, including fluctuations that are often unrelated
to the operating performance of the affected companies. Broad market
fluctuations of this type have adversely affected, and may continue to adversely
affect the market price of our common stock. The market price of our common
stock has been, and could continue to be, subject to significant fluctuations
due to a variety of factors, including:

o public announcements concerning us or our competitors, or the Internet
generally;

o fluctuations in operating results;

o downturns in the financial services industry generally or the market for
securities trading in particular;

o introductions of new products or services by us or our competitors;

o future sales of shares of our common stock by major shareholders;

o future sales of shares issuable upon the exercise of outstanding options
and warrants in the public market;

o changes in analysts' earnings estimates; and

o announcements of technological innovations.

In the past, companies that have experienced volatility in the market price of
their stock have been the target of securities class action litigation. We are
currently involved in securities class action litigation that could result in
substantial costs and a diversion of our management's attention and resources
and could have a material adverse effect on our business, results of operation
and financial condition. We may be subject to further suits in the future.

OUR EXECUTIVE OFFICERS, DIRECTORS AND 5% OR GREATER STOCKHOLDERS SIGNIFICANTLY
INFLUENCE ALL MATTERS REQUIRING A STOCKHOLDER VOTE

Our executive officers, directors and existing stockholders who each own greater
than 5% of the outstanding common stock and their affiliates, in the aggregate,
beneficially own approximately 58% of our outstanding common stock. As a result,
our executive officers, directors and 5% or greater stockholders will be able to
significantly influence the outcome of all matters requiring approval by our
stockholders, including the election of directors and approval of significant
corporate transactions. This concentration of ownership may also have the effect
of delaying or preventing a change in control.

DISTRIBUTION AND OTHER FEES TO RESEARCH PROVIDERS AND STRATEGIC PARTNERS
INCREASE MULTEX'S COSTS

Royalties and distribution fees payable to our information providers and
strategic partners to obtain distribution rights to research reports included in
MULTEX ONDEMAND constitute a significant portion of our cost of revenues. We
face from time to time considerable competitive pressure to increase these
royalties. Such increases have materially affected our results of operations as
described herein. If we are required to further increase the royalties or fees
payable to these information providers or strategic partners, these increased
payments could have additional material and adverse effects on our business,
results of operations and financial condition.

THE INADVERTENT DISTRIBUTION OF RESEARCH REPORTS COULD RESULT IN A CLAIM FOR
DAMAGES AGAINST MULTEX OR HARM OUR REPUTATION

Under certain of our contracts we are required to restrict distribution of
financial information to those users who have been authorized or entitled to
access the report by the information provider. We might inadvertently distribute
a particular report to a user who is not so authorized or entitled, which could
subject us to a claim for damages by the information provider or which could
harm our reputation in the marketplace, either of which could have a material
and adverse effect on our business, results of operations and financial
condition.

WE MAY BE SUBJECT TO LEGAL CLAIMS IN CONNECTION WITH THE CONTENT WE PUBLISH AND
DISTRIBUTE ON THE INTERNET

As a publisher and distributor of online content, we face potential direct and
indirect liability for claims of defamation, negligence, copyright, patent or
trademark infringement, violation of the securities laws and other claims based
upon the reports and data that we publish. For example, by distributing a
negative investment research report, we may find ourselves subject to defamation
claims, regardless of the merits of such claims. Computer failures or human
error may also result in incorrect data being published and distributed widely.
In these and other circumstances, we might be required to engage in protracted
and expensive litigation, which could have the effect of diverting management's
attention and require us to expend significant financial resources. Our general
liability insurance may not cover all of these claims or may not be adequate to
protect us against all liability that may be imposed. Any claims or resulting
litigation could have a material and adverse effect on our business, results of
operations and financial condition.

IF THE INTERNET INFRASTRUCTURE IS NOT ADEQUATELY MAINTAINED, WE MAY BE UNABLE TO
PROVIDE INVESTMENT RESEARCH AND INFORMATION SERVICES IN A TIMELY MANNER

Our future success will depend, in substantial part, upon the maintenance of the
Internet infrastructure, including a reliable network backbone with the
necessary speed, data capacity and security, and the timely development of
enabling products for providing reliable and timely Internet access and
services. Our temporary loss of Internet data communications due to the
September 11th terrorist attacks illustrates this risk. There can be no
assurance that the Internet infrastructure will continue to be able to support
the demands placed on it or that the performance or reliability of the Internet
will not be adversely affected. The Internet has experienced a variety of
outages and other delays as a result of damage to portions of its infrastructure
or otherwise, and these outages or delays could adversely affect the web sites
of our contributors, subscribers or distributors.

WE MAY BECOME SUBJECT TO BURDENSOME GOVERNMENT REGULATION AND
LEGAL UNCERTAINTIES

The laws governing the Internet remain largely unsettled, even in areas where
there has been legislative action. Legislation and/or regulation could dampen
the growth in the use of the Internet generally and decrease the

acceptance of the Internet as a communications and commercial medium, which
could have a material and adverse effect on our business, results of operations
and financial condition. In addition, due to the global nature of the Internet,
it is possible that, although transmissions relating to our services originate
mainly in the State of New York, governments of other states, the United States
or foreign countries might attempt to regulate our services or levy sales or
other taxes on our activities. We cannot assure you that violations of local or
other laws will not be alleged or charged by local, state, federal or foreign
governments, that we might not unintentionally violate these laws or that these
laws will not be modified, or new laws enacted, in the future. Any of these
developments could have a material and adverse effect on our business, results
of operations and financial condition.

ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

(a)(1) Consolidated Financial Statements

MULTEX.COM, INC.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

PAGE
Report of Independent Auditors .............................................. 33

Consolidated Balance Sheets as of December 31, 2001 and 2000 ................ 34

Consolidated Statements of Operations for the years ended
December 31, 2001, 2000 and 1999 .......................................... 35

Consolidated Statements of Stockholders' Equity (Deficit) for the years
ended December 31, 2001, 2000 and 1999 .................................... 36

Consolidated Statements of Cash Flows for the years ended
December 31, 2001, 2000 and 1999 .......................................... 37

Notes to Consolidated Financial Statements .................................. 39

Schedule II - Valuation and Qualifying Accounts ............................. 54

(a)(2) Supplementary Data

Not Applicable.

REPORT OF INDEPENDENT AUDITORS

To the Board of Directors and Stockholders of
Multex.com, Inc.

We have audited the accompanying consolidated balance sheets of
Multex.com, Inc. (the "Company") as of December 31, 2001 and 2000, and the
related consolidated statements of operations, stockholders' equity (deficit)
and cash flows for each of the three years in the period ended December 31,
2001. Our audits also included the financial statement schedule listed in the
Index at Item 14(a). These financial statements and schedule are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the consolidated financial position of
Multex.com, Inc. as of December 31, 2001 and 2000, and the consolidated results
of its operations and its cash flows for each of the three years in the period
ended December 31, 2001 in conformity with accounting principles generally
accepted in the United States. Also, in our opinion, the related financial
statement schedule when considered in relation to the basic financial statements
taken as a whole, presents fairly in all material respects the information set
forth therein.

ERNST & YOUNG LLP

New York, New York
January 29, 2002

MULTEX.COM, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

DECEMBER 31,
ASSETS 2001 2000
-------- --------
Current assets:
Cash and cash equivalents $ 40,771 $ 20,237
Marketable securities 1,027 25,493
Accounts receivable, less allowance of
$2,795 in 2001 and $1,240 in 2000 18,268 27,497
Other current assets 4,208 6,542
-------- --------
Total current assets 64,274 79,769

Property and equipment, net 38,236 37,909
Goodwill, net 6,100 33,704
Intangibles, net 15,795 17,649
Investments 4,236 4,468
Other 6,245 1,022
-------- --------
Total assets $134,886 $174,521
======== ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,341 $ 4,805
Accrued expenses 5,963 9,852
Deferred revenues 9,058 10,533
-------- --------
Total current liabilities 17,362 25,190

Long term liabilities:
Deferred rent 3,251 3,119
Other 7 87
-------- --------
Total long term liabilities 3,258 3,206

Stockholders' equity:
Preferred stock - $.01 par value:
Authorized - 5,000,000 shares; none issued
and outstanding -- --
Common stock - $.01 par value:
Authorized - 200,000,000 shares; issued
and outstanding 32,525,000 shares
at December 31, 2001 and 31,741,000 at
December 31, 2000 325 317
Additional paid-in capital 227,108 216,683
Accumulated deficit (104,071) (61,336)
Deferred equity consideration (8,920) (9,671)
Accumulated other comprehensive (loss) income (176) 132
-------- --------
Total stockholders' equity 114,266 146,125
-------- --------
Total liabilities and stockholders' equity $134,886 $174,521
======== ========

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

MULTEX.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)

YEARS ENDED DECEMBER 31,
----------------------------------
2001 2000 1999
-------- ------- --------
Gross revenues $ 96,615 $85,942 $ 40,850
Performance-based warrants (2,915) -- --
-------- ------- --------
Net revenues 93,700 85,942 40,850

Cost of revenues 25,174 17,839 10,569
-------- ------- --------
Gross profit 68,526 68,103 30,281

Operating expenses:
Sales and marketing 25,921 26,017 26,379
Research and development 8,003 10,149 6,301
General and administrative 32,065 25,000 14,403
Depreciation and amortization 17,867 11,163 4,011
Impairment and restructuring charges 27,387 -- --
-------- ------- --------
Total operating expenses 111,243 72,329 51,094

Loss from operations (42,717) (4,226) (20,813)

Other income (expense):
Interest income 1,761 3,214 2,359
Interest expense (51) (88) (114)
Equity in loss from unconsolidated
business (930) -- --
Other (130) -- (5,713)
-------- ------- --------
Loss from continuing operations
before income taxes (42,067) (1,100) (24,281)
Income tax expense 668 95 1,030
-------- ------- --------
Loss from continuing operations (42,735) (1,195) (25,311)

Discontinued operations:
Income from discontinued operations,
net of taxes -- -- 106
Gain on sale of discontinued operations,
net of taxes -- -- 226
-------- ------- --------
-- -- 332

Net loss (42,735) (1,195) (24,979)
Redeemable preferred stock dividends -- -- 1,188
-------- ------- --------
Net loss attributable to common stockholders $(42,735) $(1,195) $(26,167)
======== ======= ========

Earnings (loss) per common share - basic
and diluted:
Continuing operations, net of redeemable
preferred Stock dividends $ (1.33) $ (0.04) $ (1.17)
Discontinued operations -- -- 0.01
------- ------- -------
Net loss $ (1.33) $ (0.04) $ (1.15)
======= ======= =======

Number of shares used in computing basic
and diluted loss per share 32,162 30,260 22,688
======= ======= =======

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

MULTEX.COM, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(IN THOUSANDS)

ACCUMULATED
COMMON STOCK ADDITIONAL OTHER
---------------------- PAID-IN ACCUMULATED DEFERRED COMPREHENSIVE
SHARES AMOUNT CAPITAL DEFICIT COMPENSATION INCOME (LOSS) TOTAL
--------- --------- --------- --------- --------- ------------- ---------

Balance at
December 31, 1998 ............ 8,043 $ 80 $ 2,039 $ (34,766) $ (1,460) $ (16) $ (34,123)
---------
Net loss ....................... -- -- -- (24,979) -- -- (24,979)
Translation adjustment ......... -- -- -- -- -- 1 1
Unrealized loss on
marketable securities ........ -- -- -- -- -- (49) (49)
---------
Comprehensive loss ............. -- -- -- -- -- -- (25,027)
---------
Redeemable preferred
stock dividend ............... -- -- (1,188) -- -- -- (1,188)
Conversion of redeemable
preferred stock to
common stock ................. 14,861 149 60,912 -- -- -- 61,061
Issuance of common stock,
net of offering costs ........ 3,284 33 41,604 -- -- -- 41,637
Exercise of options ............ 945 9 3,508 -- -- -- 3,517
Amortization of deferred
compensation relating
to stock options ............. -- -- -- -- 480 -- 480
Compensation related to
acceleration of option
vesting ...................... -- -- 161 -- -- -- 161
Issuance of common stock
from the employee stock
purchase plan ................ 47 1 572 -- -- -- 573
Issuance of warrants ........... -- -- 1,956 -- (1,456) -- 500
Amortization of warrants ....... -- -- -- -- 5 -- 5
Accumulated deficit
adjustment ................... -- -- -- (396) -- -- (396)
--------- --------- --------- --------- --------- --------- ---------

Balance at December 31, 1999 ... 27,180 272 109,564 (60,141) (2,431) (64) 47,200
---------
Net loss ....................... -- -- -- (1,195) -- -- (1,195)
Translation adjustment ......... -- -- -- -- -- (100) (100)
Unrealized gain on
marketable securities ........ -- -- -- -- -- 296 296
---------
Comprehensive loss ............. -- -- -- -- -- -- (999)
---------
Issuance of common stock ....... 3,412 34 85,404 -- -- -- 85,438
Exercise of options ............ 542 5 3,005 -- -- -- 3,010
Amortization of deferred
compensation relating
to stock options ............. -- -- -- -- 480 -- 480
Issuance of common stock
from the employee stock
purchase plan ................ 141 1 1,621 -- -- -- 1,622
Exercise of warrants ........... 266 3 (3) -- -- -- --
Issuance of warrants ........... -- -- 9,810 -- (9,810) -- --
Amortization of warrants ....... -- -- -- -- 2,090 -- 2,090
Tax benefit from option
exercises .................... -- -- 1,884 -- -- -- 1,884
Purchase of software ........... 200 2 5,398 -- -- -- 5,400
--------- --------- --------- --------- --------- --------- ---------

Balance at December 31, 2000 ... 31,741 317 216,683 (61,336) (9,671) 132 146,125
---------
Net loss ....................... -- -- -- (42,735) -- -- (42,735)
Translation adjustment ......... -- -- -- -- -- 12 12
Unrealized loss on
marketable securities ........ -- -- -- -- -- (320) (320)
---------
Comprehensive loss ............. -- -- -- -- -- -- (43,043)
---------
Exercise of options ............ 262 3 1,377 -- -- -- 1,380
Issuance of common stock
from the employee stock
purchase plan ................ 201 2 1,624 -- -- -- 1,626
Issuance of common stock ....... 274 2 1,234 -- -- -- 1,236
Deferred compensation
related to restricted
stock ........................ -- -- 3,845 -- (3,845) -- --
Issuance of common stock
relating to restricted
stock ........................ 47 1 (138) -- -- -- (137)
Amortization of deferred
compensation relating
to stock options ............. -- -- -- -- 469 -- 469
Amortization of deferred
compensation relating
to restricted stock .......... -- -- -- -- 1,874 -- 1,874
Issuance of warrants in
connection with
performance based
contract ..................... -- -- 2,915 -- -- -- 2,915
Adjustment of
compensation expense ......... -- -- (432) -- -- -- (432)
Amortization of warrants ....... -- -- -- -- 2,253 -- 2,253
--------- --------- --------- --------- --------- --------- ---------
Balance at
December 31, 2001 ............ 32,525 $ 325 $ 227,108 $(104,071) $ (8,920) $ (176) $ 114,266
========= ========= ========= ========= ========= ========= =========

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

MULTEX.COM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)

YEARS ENDED DECEMBER 31,
-----------------------------------
2001 2000 1999
-------- --------- --------

OPERATING ACTIVITIES
Net loss from continuing operations ........................... $(42,735) $ (1,195) $(25,311)
Adjustments to reconcile net loss from continuing
operations to net cash used in operating activities:
Amortization of equity consideration ...................... 4,163 2,570 646
Depreciation and amortization of property
and equipment ........................................... 11,028 6,129 3,365
Amortization of goodwill and intangibles .................. 4,586 2,924 --
Amortization of issuance and financing costs .............. -- -- 13
Performance- based warrant charges ........................ 2,915 -- --
Deferred income tax ....................................... -- -- 191
Deferred rent ............................................. 132 688 2,012
Bad debt expense .......................................... 2,589 1,057 901
Accumulated deficit adjustment ............................ -- -- (396)
Loss on sale of investment ................................ 173 -- --
Gain on sale of marketable securities ..................... (324) -- --
Impairment and restructure charges ........................ 26,610 -- --
Changes in operating assets and liabilities:
Accounts receivable ..................................... 6,640 (16,653) (8,187)
Other current assets .................................... 622 (283) (2,700)
Other assets ............................................ (251) (3,820) (1,283)
Accounts payable ........................................ (2,832) (2,426) 2,977
Accrued expenses ........................................ (3,978) 3,293 3,179
Deferred revenues ....................................... (1,475) 3,442 2,315
Other liabilities ....................................... (3) (50) (28)
-------- -------- -------
Net cash provided (used) in operating activities
from continuing operations .................................. 7,860 (4,324) (22,306)

INVESTING ACTIVITIES
Purchases of marketable securities ............................ (35,016) (101,595) (41,957)
Proceeds from sale or maturities of marketable securities ..... 59,486 109,426 28,895
Proceeds form sale of investment .............................. 1,045 -- --
Acquisition of companies, net of cash acquired ................ -- (20,268) --
Purchases of property and equipment ........................... (15,612) (24,999) (8,634)
-------- -------- -------
Net cash provided (used) in investing activities .............. 9,903 (37,436) (21,696)

FINANCING ACTIVITIES
Net proceeds from issuances of stock .......................... 2,869 56,233 45,727
Proceeds from issuance of warrants ............................ -- -- 500
Repayment of long-term debt and capital leases ................ (110) (224) (624)
---- ---- ----
Net cash provided by financing activities ..................... 2,759 56,009 45,603

DISCONTINUED ACTIVITIES
Income from discontinued operations including gain on
sale, net of taxes ........................................ -- -- 106
Adjustments to reconcile income from discontinued
operations to net cash used in discontinued operations:
Gain on sale of discontinued operations, net of taxes ..... -- -- 225
-------- -------- -------
Net cash provided by discontinued operations .................. -- -- 331

Effect of exchange rate changes on cash ....................... 12 (101) 1
-------- -------- -------
Increase in cash and cash equivalents ......................... 20,534 14,148 1,933
Cash and cash equivalents, beginning of year .................. 20,237 6,089 4,156
-------- -------- -------
Cash and cash equivalents, end of year ........................ $ 40,771 $ 20,237 $ 6,089
======== ======== =======

MULTEX.COM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS-(CONTINUED)
(IN THOUSANDS)

YEARS ENDED DECEMBER 31,
------------------------------
2001 2000 1999
------- ------- -------
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION
Noncash investing and financing activity:
Acquisition of fixed assets through
capital leases .......................... -- -- $ 280
=======
Accrued purchases of fixed assets ......... $ 368 $ 1,455 $ 844
======= ======= =======
Issuance of restricted stock .............. $ 3,845 -- --
=======
Unrealized gain (loss) on marketable
securities .............................. $ (320) $ 296 $ (49)
======= ======= =======
Stock issued for acquisitions ............. -- $39,238 --
=======
Stock issued to unconsolidated business ... $ 1,236 -- --
=======
Stock issued for exercise of warrants ..... -- $ 3 --
=======
Fair market value of warrants issued ...... $ 2,915 $ 9,810 $ 1,956
======= ======= =======
Noncash consideration received on sale
of investment ........................... $ 250 -- --
=======
Taxes paid ................................ $ 423 $ 227 $ 419
======= ======= =======
Interest paid ............................. $ 51 $ 88 $ 88
======= ======= =======

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2001

1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

Multex.com, Inc. (the "Company" or "Multex") is a global provider of
investment information and technology solutions to the financial services
industry, including brokerage firms, professional money management firms, hedge
funds, venture capital firms, mutual funds, investment banks, corporations, and
individual investors. Headquartered in New York, the Company also has offices in
Lake Success (New York), San Francisco, London, Edinburgh and Hong Kong.

BASIS OF PRESENTATION

The Company's fiscal year ends on December 31. On September 23, 1999, the
Company completed the acquisition of Market Guide Inc. ("Market Guide"), which
was accounted for as a pooling of interests. The pooling of interests method of
accounting requires the restatement of all periods as if the Company and Market
Guide had always been combined. All prior year consolidated financial statements
include the acquisition of Market Guide.

PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements include the accounts
of Multex.com, Inc. and its wholly-owned subsidiaries. Significant intercompany
account balances and transactions have been eliminated in consolidation.

USE OF ESTIMATES

The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

SEGMENT INFORMATION

The Company discloses information regarding segments in accordance with
Statement of Financial Accounting Standards (SFAS) No. 131, DISCLOSURES ABOUT
SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION. SFAS No. 131 establishes
standards for reporting of financial information about operating segments in
annual financial statements and requires reporting selected information about
operating segments in interim financial reports. The disclosure of segment
information was not required as the Company operates in only one business
segment.

RECLASSIFICATIONS

Certain reclassifications were made to the prior years' financial
statements to conform with the current year presentation.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

STOCK-BASED COMPENSATION

The Company measures compensation expense related to the grant of stock
options and stock-based awards to employees in accordance with the provisions of
Accounting Principles Board ("APB") Opinion No. 25, under which compensation
expense, if any, is generally based on the difference between the exercise price
of an option, or the amount paid for the award, and the market price or fair
value of the underlying common stock at the date of the award. Stock-based
compensation arrangements involving nonemployees are accounted for under SFAS
No. 123, ACCOUNTING FOR STOCK-BASED COMPENSATION, under which such arrangements
are accounted for based on the fair value of the option or award. As required by
SFAS No. 123, the Company discloses pro forma net loss per share information
reflecting the effect of applying SFAS No. 123 fair value measurement to
employee and director arrangements.

In March 2000, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 44, ACCOUNTING FOR CERTAIN TRANSACTIONS INVOLVING STOCK
COMPENSATION, an Interpretation of APB No. 25, which became effective beginning
July 1, 2000. The adoption of this new accounting standard did not have a
significant effect on the Company's financial position or results of operations.

CONCENTRATION OF CREDIT RISK

At December 31, 2001, substantially all cash and cash equivalents were
held in seven financial institutions.

The Company's customers are concentrated among institutional investors
and financial professionals, including mutual fund managers, portfolio managers,
brokers and their clients, as well as through third party redistributors. The
Company derives most of its revenue from customers located within the United
States. For the year ended December 31, 2001, the Company's non-US revenue and
net loss was primarily from the United Kingdom and totaled approximately $14.0
million and $0.4 million, respectively.

One customer accounted for approximately 11% of revenues for the year
ended December 31, 2001 and approximately 18% of accounts receivable at December
31, 2001. The same customer accounted for approximately 13% and 10% of revenues
for the year ended December 31, 2000 and 1999, and approximately 20% and 21% of
accounts receivable at December 31, 2000 and 1999, respectively. The Company
performs ongoing credit evaluations, generally does not require collateral and
establishes an allowance for doubtful accounts based upon factors surrounding
the credit risk of customers, historical trends, and other information; to date,
such losses have been within management's expectations.

DERIVATIVES AND HEDGING ACTIVITIES

In 2000, the Company adopted SFAS No. 133, ACCOUNTING FOR DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES, AS AMENDED. To date, the Company has not
made use of the financial instruments covered by this statement and therefore
there is no impact on its financial position or results of operations.

FOREIGN CURRENCY TRANSLATION

The financial statements of foreign subsidiaries have been translated
into U.S. dollars in accordance with SFAS No. 52, FOREIGN CURRENCY TRANSLATION.
The functional currency of the Company's foreign operating units is the local
currency in the country in which the unit operates. All assets and liabilities
have been translated using the exchange rate in effect at the balance sheet
date. Statement of operations amounts have been translated using the average
exchange rate for the period. Adjustments resulting from such translation have
been reported separately as a component of other comprehensive income in
stockholders' equity.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts reported in the balance sheets for cash and cash
equivalents, accounts receivable, accounts payable and accrued expenses
approximate their fair values.

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid investments with a maturity of 90
days or less when purchased (other than commercial paper included in marketable
securities) to be cash equivalents.

MARKETABLE SECURITIES

Marketable securities are classified as available for sale. Marketable
securities consist of mutual funds, government securities, corporate notes and
bonds, certificates of deposit and commercial paper. Marketable securities are
carried at fair value, which approximates cost.

PROPERTY AND EQUIPMENT

Property and equipment are stated at cost, and depreciation is computed
using the straight-line method over the estimated useful life of the asset or
the life of the lease, whichever is shorter, which ranges from two to five
years.

CAPITALIZED SOFTWARE COSTS

The Company capitalizes certain software development costs in accordance
with the American Institute of Certified Public Accountants ("AICPA") issued
Statement of Position No. 98-1, "Accounting for the Cost of Computer Software
Developed or Obtained for Internal Use". Costs incurred during the application
development stage of a project for the Company's own use are currently
capitalized. Upon project completion the capitalized costs are amortized over
its useful life, which is generally three years. For the year ended December 31,
2001, the Company capitalized software development costs totaling $2.9 million,
which related to 12 projects. The costs primarily consist of payroll and related
charges.

GOODWILL AND INTANGIBLES

Goodwill is amortized using the straight-line method principally over 10
years. Acquired identifiable intangible assets consisting of customer lists,
database content and database software are amortized using the straight-line
method over estimated useful lives ranging from 5 to 10 years.

IMPAIRMENT OF LONG-LIVED ASSETS

The Company continually reviews amortization periods and the carrying
value of long-lived assets, including furniture and fixtures, property and
equipment, goodwill and intangibles to determine whether there are any
indications of reduction in useful lives or impairment losses. With respect to
goodwill and intangibles, events that would cause the Company to conduct an
impairment assessment include significant losses of customers, operating results
of acquired businesses that continually failed to meet management's performance
expectations, diminished marketability of acquired databases, or diminished
utility of acquired technology. If, after conducting such assessment,
indications of impairment are present in long-lived assets, the estimated future
undiscounted cash flows associated with the corresponding assets would be
compared to its carrying amounts to determine if a change in useful life or a
write-down to fair value is necessary.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

DEFERRED REVENUE

Deferred revenue represents the unamortized portion of annual
subscriptions received in advance, and fees received from customers in advance
of performance of services.

REVENUE RECOGNITION

Pursuant to Staff Accounting Bulletin 101, the Company recognizes revenue
when a signed contract exists, the fee is fixed and determinable, delivery has
occurred, and collection of the resulting receivable is probable. For contracts
with multiple elements (e.g., website development services, hosting services and
computer equipment), the Company allocates revenue to each element of the
contract based on objective evidence of the element's fair value.

Revenues from subscriptions are recognized in equal installments over the
term of the subscriptions. Non-subscription revenues from the MULTEXNET
ON-DEMAND service are recognized upon sale. Revenues from sponsorships and
advertising are recognized in equal installments over the term of the contract.
Revenues from database licensing fees are recognized over the term of the
contract. Revenues from professional services are recognized when the services
are accepted by the client. Such services are primarily customization software
services that allow the Company's services to interface and function with the
customers' existing software platforms.

ADVERTISING

The Company expenses the costs of advertising as incurred. Advertising
expense for the years ended December 31, 2001, 2000, and 1999 was approximately
$3.8 million, $6.4 million, and $15.3 million, respectively.

EARNINGS (LOSS) PER SHARE

The Company calculates earnings per share in accordance with SFAS No.
128, EARNINGS PER SHARE, and SEC Staff Accounting Bulletin No. 98. Accordingly,
basic earnings per share is computed using the weighted average number of common
and dilutive common equivalent shares outstanding during the period. Common
equivalent shares consist of shares issuable upon the exercise of stock options
(using the treasury stock method); common equivalent shares are excluded from
the calculation if their effect is anti-dilutive.

COMPREHENSIVE INCOME

The Company follows the requirements of SFAS No. 130, REPORTING
COMPREHENSIVE INCOME, for the reporting and display of comprehensive income and
its components. SFAS No. 130 requires unrealized gains or losses on the
Company's available for sale securities and foreign currency translation
adjustments to be included in other comprehensive income (loss).

RECENT ACCOUNTING PRONOUNCEMENTS

In July 2001, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards No. 141 "Business Combinations"
(SFAS No. 141) and Statement of Financial Accounting Standards No. 142 "Goodwill
and Other Intangible Assets" (SFAS No.142), effective for the fiscal years
beginning after December 31, 2001. FAS 141 requires business combinations
initiated after June 30, 2001 to be accounted for using the purchase method of
accounting. Under FAS 142, goodwill and intangible assets are no longer
amortized but are reviewed annually for impairment. Separable intangible assets
that are not deemed to have indefinite lives will continue to be amortized over
their useful lives. The amortization provisions of FAS 142 apply to goodwill and
intangible assets acquired after June 30, 2001. The company will apply the new
rules on accounting for goodwill and other intangible assets beginning January
1, 2002. Application of the non-amortization provisions of FAS 142

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

1. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

will result in a reduction of goodwill amortization of approximately $675,000,
annually.

In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144, "Accounting for the Impairment or the Disposal of Long-Lived Assets ("SFAS
No. 144") which supercedes ("SFAS No. 121") Accounting for the Impairment of
Long -Lived Assets and for Long-Lived Assets to be Disposed of." The provisions
of this statement are effective for fiscal years beginning after December 15,
2001. The adoption of this new accounting pronouncement is not expected to have
a material impact on the Company's consolidated financial position or results of
operations.

2. MARKETABLE SECURITIES

The cost, gross unrealized gains and losses and fair value of the
investment securities available for sale are as follows (expressed in 000's):

GROSS GROSS
UNREALIZED UNREALIZED
DECEMBER 31, 2001 COST GAINS LOSSES FAIR VALUE
---------------------------- --------- ---------- ---------- ----------
Mutual funds................ 1,100 -- (73) 1,027
-------- ----- ----- --------
$ 1,100 $ -- $ (73) $ 1,027
======== ===== ===== ========

GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED
DECEMBER 31, 2000 COST GAINS LOSSES FAIR VALUE
---------------------------- --------- ---------- ---------- ----------
U.S. government notes
and bonds................ $ 13,220 $ 214 $ -- $ 13,434
Corporate bonds and notes... 6,393 25 -- 6,418
Commercial paper............ 4,040 28 -- 4,068
Euro dollar bonds........... 559 -- -- 559
Mutual funds................ 1,034 -- (20) 1,014
-------- ----- ----- --------
$ 25,246 $ 267 $ (20) $ 25,493
======== ===== ===== ========

Realized gains upon redemption of marketable debt instruments are
included in interest income.

3. PROPERTY AND EQUIPMENT

Property and equipment consist of the following (expressed in 000's):

DECEMBER 31,
-------------------
2001 2000
------- -------
Computer and telecommunications equipment
and related software............................. $43,636 $37,104
Furniture, fixtures and office equipment........... 5,207 3,149
Leasehold improvements............................. 13,411 12,616
------- -------
62,254 52,869

Less accumulated depreciation and amortization..... 24,018 14,960
------- -------
$38,236 $37,909
======= =======

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

4. GOODWILL AND INTANGIBLES

The Company has allocated the purchase price of acquired companies to
identifiable tangible assets and liabilities and intangible assets based on the
nature and the terms of the various purchase agreements and evaluation of the
acquired businesses. Amounts not allocated to tangible assets and liabilities
and identifiable intangible assets have been recorded as goodwill.

Goodwill and other identifiable intangible assets consist of the
following (expressed in 000's):

DECEMBER 31,
-------------------
2001 2000
------- -------
Goodwill .......................................... $ 6,775 $35,808
Accumulated amortization .......................... (675) (2,104)
------- -------
Goodwill, net ..................................... $ 6,100 $33,704
======= ========

Database technology ............................... $11,677 $11,677
Database content .................................. 6,100 6,114
Customer lists .................................... 675 678
Accumulated amortization .......................... (2,657) (820)
------- -------
Other intangibles, net ............................ $15,795 $17,649
======= ========

Amortization expense for goodwill and intangibles was $4.6 million for the year
ended December 31, 2001 and $2.9 million for the year ended December 31, 2000.
In addition, goodwill was reduced by approximately $25.4 million in 2001 as a
result of impairment charges.

Beginning in 2002, the Company will adopt SFAS No. 141 and will no longer
amortize goodwill. Goodwill and intangibles will be reviewed for impairment on a
periodic basis.

5. ACQUISITIONS

BARRA GLOBAL ESTIMATES

On December 7, 2000, the Company acquired the BARRA Global Estimates
business from BARRA, Inc. for approximately $12.5 million in cash. The BARRA
Global Estimates business provides consensus and attributed estimates of
financial performance metrics from more than 400 non-U.S. brokers covering over
11,000 companies in more than 60 countries. The acquisition has been accounted
for by the purchase method of accounting and accordingly, the excess of the
purchase price over the fair market value of the net assets acquired has been
allocated to goodwill and identifiable intangibles. This acquisition did not
meet the criteria for pro forma disclosure due to immateriality.

BUZZCOMPANY, INC.

On May 10, 2000, the Company acquired all of the outstanding shares of
BuzzCompany, Inc., a developer of next-generation e-community software and a
provider of web application development services. The Company issued 1,058,000
shares of common stock, with a fair market value of $21.55 per share. The
acquisition has been accounted for by the purchase method of accounting and
accordingly, the excess of the purchase price over the fair market value of the
net assets acquired has been allocated to goodwill and identifiable intangibles.
On June 30, 2001, the Company exited the Buzz software product line, resulting
in an impairment charge of approximately $10.3 million.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

5. ACQUISITIONS (CONTINUED)

SAGE ONLINE, INC.

On March 20, 2000, the Company acquired all of the outstanding shares of
Sage Online, Inc., a provider of live events and interactive community for
personal finance, including mutual fund and equity content, chat rooms, forums
and message boards. The Company issued 354,000 shares of common stock, with a
fair market value of $31.16 per share, and paid $6.0 million in cash. The
acquisition has been accounted for by the purchase method of accounting and
accordingly, the excess of the purchase price over the fair market value of the
net assets acquired has been allocated to goodwill. On June 30, 2001, the
Company exited the Sage Online business, resulting in an impairment charge of
$15.3 million.

MARKET GUIDE INC.

On September 23, 1999, pursuant to an Agreement and Plan of Merger and
Reorganization, the Company acquired Market Guide Inc., an online provider of
financial information and data. The merger was accounted for as a pooling of
interests with each Market Guide shareholder receiving one share of the
Company's common stock for each outstanding share of Market Guide stock. The
Company issued 4,900,000 shares of its common stock and assumed stock options to
purchase 680,000 shares of the Company's common stock. In connection with the
merger, the Company incurred approximately $5.7 million in costs related to the
transaction.

Unaudited combined and separate results of the Company and Market Guide
for the period from January 1, 1999 to September 23, 1999 were (expressed in
000's):

MARKET INTER-
MULTEX GUIDE COMPANY COMBINED
------ ------ ------- --------
Revenues ................... $ 19,235 $ 8,319 $(178) $ 27,376
Net loss ................... (14,883) (2,809) -- (17,692)

6. IMPAIRMENT AND RESTRUCTURING CHARGES

IMPAIRMENT

During the quarter ended June 30, 2001, the Company recorded an
impairment charge of $25.6 million relating to Sage Online and BuzzCompany.

SAGE ONLINE

The Company decided to discontinue Sage Online, a provider of live
events, chat rooms and message boards directed towards the individual investor.
This was due to general economic conditions and a decline in demand for such
services. As a result, the Company recorded a charge of $15.1 million to
goodwill, representing the net balance of goodwill acquired, and a $0.2 million
charge to property and equipment, representing the net balance of property and
equipment acquired.

BUZZCOMPANY

The Company decided to discontinue direct sales of BuzzCompany software,
which provides collaboration solutions directed towards financial services
providers. This was primarily due to a decline in demand of the software offered
as a stand-alone product. The Company continues to integrate and bundle "Buzz"
services into its existing products. As a result, the Company recorded a charge
of $10.3 million to goodwill, representing the net balance of goodwill acquired.
The intangible assets representing database technology and content have not been
impaired.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

6. IMPAIRMENT AND RESTRUCTURING CHARGES (CONTINUED)

RESTRUCTURING CHARGE

During the quarter ended September 30, 2001, the Company recorded a
restructuring charge of approximately $1.8 million. This charge primarily
resulted from the Company's plan to reduce its cost structure to better match
its current and anticipated revenue levels, and to refocus its sales and
marketing campaigns. Components of this charge included (i) cash charges of
approximately $0.8 million for involuntary termination and severance benefits
for approximately 100 employees (ii) noncash charges of approximately $0.4
million for termination of marketing contracts, and (iii) noncash charges of
$0.6 million for termination of an operating lease and related writedown of
leasehold improvements at a New York City location.

7. ACCRUED EXPENSES

Accrued expenses consist of the following (expressed in 000's):

DECEMBER 31,
----------------
2001 2000
------ ------
Payroll and related costs ..................... $1,795 $1,261
Accrued vacation .............................. 265 265
Accrued bonuses ............................... 56 3,668
Royalties ..................................... 629 833
Professional fees ............................. 541 653
Due to BARRA acquisition ...................... -- 1,124
Taxes ......................................... 447 188
Other ......................................... 2,230 1,860
------ ------
$5,963 $9,852
====== ======

8. COMMITMENTS

OPERATING LEASES

The Company has various lease agreements for offices. Lease terms
generally range from five to ten years with options to renew at varying terms.
The approximate future minimum annual rental payments under these operating
leases are as follows (expressed in 000's):

2002..................................................... $4,611
2003..................................................... 4,581
2004..................................................... 4,558
2005..................................................... 4,519
2006..................................................... 3,022
Thereafter............................................... 9,388
-------
$30,679
=======

Total rental expense for the years ended December 31, 2001, 2000 and 1999
was approximately $4.9 million, $3.6 million, and $1.8 million, respectively.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

9. LONG-TERM DEBT

On June 30, 2000, the Company entered into a $10.0 million Revolving
Credit Facility (the "Facility") with a bank, which bears interest at an annual
rate of prime plus one-half percent or LIBOR plus two and one-half percent. The
Facility expires on July 1, 2002 and is secured by certain eligible accounts
receivable. Under the Facility, the Company is required to maintain certain
levels of net worth and other financial ratios.

The availability of borrowings has been reduced by certain outstanding
letters of credit. As of December 31, 2001, the Company had outstanding letters
of credit issued in the amount of $1.5 million and $8.5 million remaining
availability under the Facility.

10. REDEEMABLE PREFERRED STOCK

During 1998, the Company authorized 80,000 shares of $.01 par value
Series E convertible preferred stock ("Series E Stock") and issued 80,000 shares
of the Series E Stock for $20,000,000. In connection with the issuance of the
Series E Stock, the Company incurred issuance costs of approximately $100,000.

In March 1999, the series A, B, C, D and E redeemable preferred stock was
converted into 14,861,112 shares of the Company's common stock upon the
consummation of the initial public offering.

11. STOCKHOLDERS' EQUITY

COMMON STOCK

In March 1999, the Company effected a 1-for-2 reverse stock split. All
common share information included in the accompanying financial statements has
been adjusted to reflect the one-for-two reverse stock split.

On March 17, 1999, the Company commenced its initial public offering of
common stock. The Company realized proceeds of approximately $41.6 million, net
of underwriting discounts and commission and related expenses from the initial
public offering of 3.45 million shares of its common stock, of which 3.3 million
shares were issued and sold by the Company.

During 1999, the Company issued 945,000 shares of its common stock for
approximately $3.5 million in connection with the exercise of stock options and
issued 47,000 shares of its common stock for approximately $573,000 in
connection with the Company's employee stock purchase plan.

During 2000, the Company issued 542,000 shares of its common stock for
approximately $3.0 million in connection with the exercise of stock options and
issued 141,000 shares of its common stock for approximately $1.6 million in
connection with the Company's employee stock purchase plan.

In July 2000, the Company issued 1.0 million shares of its common stock
in a private placement for approximately $30.0 million.

During 2001, the Company issued 262,000 shares of its common stock for
approximately $1.4 million in connection with the exercise of stock options and
issued 201,000 shares of its common stock for approximately $1.6 million in
connection with the Company's employee stock purchase plan. In addition, the
Company also issued 47,000 shares in connection with restricted stock grants to
certain employees.

COMMON STOCK RESERVED FOR ISSUANCE

At December 31, 2001, the Company has reserved approximately 12.9 million
shares of its common stock for issuance in connection with shares issuable under
the Company's stock option plan, employee stock purchase plan and warrant
commitments.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

11. STOCKHOLDERS' EQUITY (CONTINUED)

PREFERRED STOCK

In March 1999, the Company authorized the issuance of 5,000,000 shares of
preferred stock, par value $0.01 per share.

12. EMPLOYEE STOCK PURCHASE PLAN

The Company maintains an Employee Stock Purchase Plan (the "ESPP"), which
allows eligible employees to purchase shares of common stock of the Company
through payroll deductions at 85% of the fair market value during specific
purchase periods, as described in the ESPP. A total of 750,000 shares of common
stock have been authorized for issuance under the ESPP. As of December 31, 2001,
366,000 shares are reserved for issuance under the ESPP. For the years ended
December 31, 2001, 2000 and 1999, 201,000, 141,000, and 47,000 shares of common
stock had been issued for total proceeds of $1.6 million, $1.6 million, and
$573,000, respectively.

13. STOCK OPTIONS

In June 2000, the stockholders approved amendments to the Company's 1999
Stock Option Plan (the "Option Plan") to increase the number of shares of Common
Stock available under such plan by an additional 3.5 million shares and to
increase the number of shares by which the share reserve under the Option Plan
will automatically increase on the first trading day in each calendar year from
three percent (3%) of the shares of Common Stock outstanding on the last trading
day of the immediately preceding calendar year to five percent (5%) of such
outstanding shares, subject to a maximum annual increase of 900,000 shares.

The Company established the Option Plan in March 1999. The Option Plan is
a successor equity incentive program to the Company's 1993 Stock Incentive Plan,
which terminated upon the Company's initial public offering of its common stock.
All outstanding options under the 1993 Stock Incentive Plan have been
transferred into the Option Plan. An aggregate of 12.1 million options to
purchase shares of the Company's common stock have been authorized for issuance
under the Option Plan.

During the years ended December 31, 1998 and 1997, the difference between
the estimated fair market value of the Company's common stock and the options'
exercise price on the date of grant was determined to be approximately $873,000
and $1,077,000, respectively. This deferred compensation is being amortized for
financial reporting purposes over the vesting period of the options and the
amount recognized as expense during the years ended December 31, 2001, 2000 and
1999 amounted to approximately $37,000, $480,000, and $480,000, respectively.
For the years ended December 31, 2001, 2000 and 1999, all options were issued at
the fair market value of the Company's common stock on the date of grant.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

13. STOCK OPTIONS (CONTINUED)

The following transactions occurred with respect to stock options issued
for the years ended December 31, 2001, 2000 and 1999:

WEIGHTED-
AVERAGE
NUMBER OF EXERCISE
OPTIONS PRICE
---------- ------
Outstanding December 31, 1998 ............ 2,839,150 $ 2.59
Granted during the year .................. 3,002,450 16.64
Cancelled during the year ................ (237,000) 6.68
Exercised during the year ................ (819,752) 3.51
---------- ------
Outstanding December 31, 1999 ............ 4,784,848 11.04
Granted during the year .................. 5,030,326 15.91
Cancelled during the year ................ (691,056) 14.02
Exercised during the year ................ (541,590) 5.56
---------- ------
Outstanding December 31, 2000 ............ 8,582,528 8.27
Granted during the year .................. 3,785,747 4.54
Cancelled during the year ................ (1,723,115) 15.71
Exercised during the year ................ (262,242) 5.26
---------- ------
Outstanding December 31, 2001 ............ 10,382,918 10.83
---------- ------

The following table summarizes information concerning outstanding options
at December 31, 2001:

OPTIONS OUTSTANDING OPTIONS EXERCISABLE
------------------------------------------------------- ----------------------
WEIGHTED
WEIGHTED AVERAGE
EXERCISE NUMBER OF AVERAGE REMAINING NUMBER OF WEIGHTED
PRICE OPTIONS EXERCISE CONTRACTUAL OPTIONS AVERAGE
RANGE OUTSTANDING PRICE LIFE EXERCISABLE PRICE
------------- ----------- -------- ----------- ----------- -------
$ 0.01 - 0.01 4,337 $0.01 7.8 3,307 $0.01
0.02 - 0.02 5,125 0.02 3.9 5,125 0.02
0.10 - 0.10 1,685 0.10 6.1 969 0.10
0.50 - 0.55 709,726 0.53 5.4 699,351 0.53
0.77 - 1.15 6,122 0.91 6.8 3,322 0.88
2.07 - 3.00 2,184,400 2.08 9.3 121,650 2.28
4.50 - 6.00 1,059,875 4.85 8.4 487,374 5.10
7.50 - 10.44 1,157,526 9.01 8.2 416,587 8.79
12.00 - 17.88 4,434,247 15.54 8.1 1,572,248 15.47
18.94 - 27.56 288,125 23.76 4.5 230,625 23.49
28.56 - 34.56 531,750 30.49 8.0 210,875 30.20
---------- ---------
10,382,918 10.83 8.1 3,751,433 11.44
========== =========

Options outstanding under the Plan primarily vest in four equal annual
installments commencing on the first anniversary of the grant and expire ten
years after the date of grant.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

13. STOCK OPTIONS (CONTINUED)

Pro forma information regarding net loss and net loss per share is
required by SFAS 123, and has been determined as if the Company had accounted
for its employee stock options under the fair value method of that statement.
The weighted average fair value of options granted during the years ended
December 31, 2001, 2000 and 1999 was $4.16, $11.47, and $12.87, respectively.
The fair value of the options was estimated at date of grant using a
Black-Scholes option pricing model with the following assumptions:

ASSUMPTIONS 2001 2000 1999
----------- ------- ------- -------
Volatility factor of the expected market
price of the Company's common stock ... 1.09 0.980 1.172
Average risk-free interest rate ......... 3.93% 6.35% 5.63%
Dividend yield .......................... 0.0% 0.0% 0.0%
Average life ............................ 4 years 4 years 4 years

The Black-Scholes option valuation model was developed for use in
estimating the fair value of traded options that have no vesting restrictions
and are fully transferable. In addition, option valuation models require the
input of highly subjective assumptions including the expected stock price
volatility. Because the Company's stock options have characteristics
significantly different from those of traded options, and because changes in the
subjective input assumptions can materially affect the fair value estimate, in
management's opinion, the existing models do not necessarily provide a reliable
single measure of the fair value of its stock options.

The Company's pro forma information is as follows (expressed in 000's,
except per share amounts):

2001 2000 1999
-------- -------- --------
Pro forma net loss available to
common Stockholders ................... $(61,963) $(18,269) $(33,414)
Pro forma basic and diluted
loss per share ........................ $ (1.93) $ (0.60) $ (1.47)

14. PENSION PLAN

The Company established a defined contribution plan (the "401(k) Plan")
under Section 401(k) of the Internal Revenue Code. All employees of the Company
are eligible to participate in the 401(k) Plan upon hire. Participants may
contribute up to 20% of their eligible earnings, as defined. The Company may
decide to make an additional contribution to the 401(k) Plan on behalf of the
401(k) Plan participants. No additional contributions have been made by the
Company for the years ended December 31, 2001, 2000 and 1999.

15. INCOME TAXES

Under FASB Statement No. 109, "Accounting for Income Taxes," the
liability method is used in accounting for income taxes. Under this method,
deferred income tax assets and liabilities result from temporary differences
between the income tax basis of assets and liabilities and their reported
amounts in the financial statements that will result in taxable income and
deductions in future years.

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

15. INCOME TAXES (CONTINUED)

Significant components of the Company's deferred tax assets (liabilities)
are as follows (expressed in 000's):

DECEMBER 31,
-------------------
2001 2000
------- -------
Net operating loss carryforward ........... $28,458 $23,047
Research and development credits .......... 2,260 1,593
Depreciation and amortization ............. 2,694 1,894
Deferred revenue .......................... 3,430 4,740
Sales incentives .......................... 3,266 941
Deferred rent ............................. 950 1,403
Other ..................................... 2,604 1,099
Acquired intangibles ...................... (7,152) (7,942)
------- -------
36,510 26,775
Valuation allowance ....................... (34,626) (24,891)
------- -------
$ 1,884 $ 1,884
======= =======

In assessing the realization of deferred tax assets, management considers
whether it is more likely than not that such benefit will be realized. The
ultimate realization of deferred tax assets is dependent upon the generation of
future taxable income. For the year ended December 31, 2000, management reversed
approximately $1.9 million of the deferred tax asset valuation allowance due to
projected taxable income for the year ended December 31, 2001. Management
expects taxable income for the year ended December 31, 2002. Therefore, the $1.9
million deferred tax asset was not reversed.

At December 31, 2001, the Company had net operating loss carryforwards of
approximately $63.2 million and research and development credits of
approximately $2.3 million for income tax purposes that expire in 2009 through
2021. The utilization with regard to timing and amount of the Company's net
operating loss carryforwards may be limited due to changes in the Company's
ownership pursuant to Section 382 of the Internal Revenue Code.

The provision for income taxes from continuing operations consists of the
following (expressed in 000's):

YEARS ENDED DECEMBER 31,
--------------------------
2001 2000 1999
---- ------ ----
Current ................................. $668 $1,979 $ 839
Deferred ................................ -- (1,884) 191
---- ------ ---
$668 $ 95 $1,030
==== ====== =======

The reconciliation of income taxes computed at the U.S. Federal statutory
rate to income tax expense is as follows (expressed in 000's):

YEARS ENDED DECEMBER 31,
------------------------------
2001 2000 1999
-------- ------- -------

Tax at U.S. statutory rate of 34% ....... $(14,530) $(374) $(8,255)
U.S. losses without benefit ............. 7,355 -- 8,724
Foreign losses with no U.S. benefit ..... 5 479 --
Expenses not deductible for U.S. ........
tax purposes .......................... 6,236 771 --
Change in valuation allowance ........... -- (1,425) --
State taxes ............................. 275 734 370
Other ................................... 1,327 (90) 191
-------- ------- -------
$ 668 $ 95 $ 1,030
======== ======= =======

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

16. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted
earnings per share (expressed in 000's, except per share amounts):

YEARS ENDED DECEMBER 31,
----------------------------------
2001 2000 1999
-------- -------- --------
Numerator:
Net loss ................................ $(42,735) $ (1,195) $(24,979)
Redeemable preferred stock dividends ...... -- -- 1,188
-------- -------- --------
Numerator for basic and diluted loss
per share--net loss attributable
to common stockholders .................. $(42,735) $ (1,195) $(26,167)
======== ======== ========
Denominator:
Denominator for basic and dilutive
loss per share--weighted
average shares ........................ 32,162 30,260 22,688
======== ======== ========
Basic and diluted loss per share .......... $ (1.33) $ (0.04) $ (1.15)
======== ======== ========

The following securities have been excluded from the dilutive per share
computation as they are antidilutive (expressed in 000's):

AT DECEMBER 31,
----------------------------------
2001 2000 1999
-------- -------- --------
Stock options ............................. 10,383 8,583 4,785
Warrants .................................. 1,319 850 418

17. DISCONTINUED OPERATIONS

On January 15, 1999, Market Guide completed the sale of its CreditRisk
Monitor ("CRM") division for approximately $2,300,000, which consisted of
approximately $1,200,000 paid in cash and notes receivable of approximately
$1,100,000. The Company recorded a gain on the sale of approximately $226,000,
net of taxes of $163,000, relating to the cash portion of the proceeds received
in excess of the net assets of the division. The notes receivable are summarized
as follows:

o $1,000,000 secured promissory note, bearing interest at 6.0% beginning on
July 1, 2001, payable in 24 equal monthly installments of principal and
interest in the amount of approximately $44,000 commencing July 31, 2001
through June 30, 2003. The present value of such promissory note was
approximately $792,000 at its origination.

o $98,000 secured expense promissory note, accruing interest beginning on
February 1, 1999, payable in 24 equal monthly installments of principal
and interest in the amount of approximately $5,000 commencing February
28, 2001 through January 31, 2003.

18. MERRILL LYNCH

In December 1999, the Company entered into a multi-year partnership with
Merrill Lynch to co-develop global research and information Web sites for
clients of Merrill Lynch's institutional e-commerce portal. As part of this
strategic partnership, the Company amended its Electronic Distribution Services
Agreement with Merrill Lynch (the "EDS Amendment"). Pursuant to the EDS
Amendment, the Company:

(i) On December 22, 1999, sold for a purchase price of $400,000, a warrant to
purchase 100,000 shares of the Company's common stock at an exercise
price of $20 per share. The Company valued this warrant and

MULTEX.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)

18. MERRILL LYNCH (CONTINUED)

recorded a deferred charge of $1,856,000 using the Black Scholes
valuation model. This charge is being amortized over the term of the EDS
Amendment.

(ii) On December 22, 1999, sold for a purchase price of $100,000, warrants to
purchase 1,500,000 shares of the Company's common stock at an exercise
price of $20 per share. The warrants vest based on certain performance
and renewal criteria described in the EDS Amendment and will be accounted
for at their fair market value on the date when the performance is
complete.

(iii) On February 1, 2000, issued 1,000,000 shares of the Company's common
stock to Merrill Lynch at a purchase price of $21.60 per share.

(iv) On February 1, 2000, issued vested warrants to purchase 750,000 shares of
the Company's common stock with an exercise price of $50 per share. The
Company has recorded a deferred charge equal to the fair value of the
warrants on February 1, 2000. The Company valued these warrants, using
the Black Scholes valuation model, at $9.8 million. These charges are
being amortized over the term of the EDS Amendment.

(v) On February 1, 2000, purchased technology from Merrill Lynch for $500,000
and 200,000 shares of the Company's common stock. The purchase price of
the technology is being amortized over the term of the EDS Amendment.

In connection with the EDS Amendment, the Company recorded amortization
expense for the deferred charges of $2.3 million and recorded performance
related warrant charges of $2.9 million for the year ended December 31, 2001.
For the year ended December 31, 2000, the Company recorded amortization expense
for deferred charges of $2.1 million.

19. THE MARKETS.COM LLC

In July 2001, the Company completed its equity participation agreement
with TheMarkets.com LLC ("TheMarkets.com"), a portal for investment institutions
established by a consortium of global brokerage and investment banking firms.
The Company issued 274,130 shares of its common stock to TheMarkets.com in
exchange for a membership interest of approximately 6%. In addition, in
accordance with a previously executed services agreement, the Company provides
development, hosting and content services to the TheMarkets.com. The Company has
accounted for its investment in the TheMarkets.com under the equity method of
accounting. The Company paid TheMarkets.com a subscription fee of $930,000 for
the year ended December 31, 2001. As of December 31, 2001, the Company's
investment in TheMarkets.com had a carrying value of $1,236,000. Under certain
circumstances, the Company may be obligated to provide additional funds to
TheMarkets.com in future years.

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
(in thousands)

BALANCE AT CHARGED TO CHARGED TO BALANCE
BEGINNING COSTS AND OTHER AT END
OF PERIOD EXPENSES ACCOUNTS DEDUCTIONS OF PERIOD
---------- ---------- ---------- ---------- ---------

For the Year Ended December 31, 2001
Allowance for doubtful accounts ......... $ 1,240 $ 2,589 -- $(1,034)(a) $ 2,795
For the Year Ended December 31, 2000
Allowance for doubtful accounts ......... $ 423 $ 1,057 -- $ (240)(a) $ 1,240
For the Year Ended December 31, 1999
Allowance for doubtful accounts ......... $ 172 $ 901 -- $ (650)(a) $ 423

(a) Uncollectible accounts written off, net of recoveries.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

Not Applicable.

PART III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The Company will furnish to the Securities and Exchange Commission a definitive
Proxy Statement (the "Proxy Statement") not later than 120 days after the end of
the fiscal year ended December 31, 2001. The information required by this item
is incorporated herein by reference to the Proxy Statement.

ITEM 11. EXECUTIVE COMPENSATION

The information required by this item is incorporated herein by reference to the
Proxy Statement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The information required by this item is incorporated herein by reference to the
Proxy Statement.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The information required by this item is incorporated herein by reference to the
Proxy Statement.

PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a) 1. FINANCIAL STATEMENTS

Reference is made to the index of consolidated financial
statements included in Item 8 of this Annual Report on Form
10-K.

2. FINANCIAL STATEMENT SCHEDULES

Schedule II - Valuation and Qualifying Accounts.

All other schedules are omitted because they are not required,
not applicable or the required information is contained
elsewhere.

3. EXHIBITS

The Index to Exhibits in paragraph (c) below is incorporated
herein by reference.

(b) REPORTS ON FORM 8-K

None.

Index to Exhibits

3.1 Amended and Restated Certificate of Incorporation (incorporated by
reference to Exhibit 3.1 of Registrant's Annual Report on Form 10-K as
filed April 2, 2001).

3.2 Certificate of Amendment to Amended and Restated Certificate of
Incorporation (incorporated by reference to Exhibit 3.2 of Registrant's
Annual Report on Form 10-K as filed April 2, 2001).

3.3 Amended and Restated Bylaws (incorporated by reference to Exhibit 3.3
of Registrant's Annual Report on Form 10-K as filed April 2, 2001).

4.1 Specimen common stock certificate (incorporated by reference to Exhibit
4.1 of Registrant's Registration Statement on Form S-1, as amended
(Registration No. 333-70693)).

4.2 See Exhibits 3.1, 3.2 and 3.3 for further provisions defining the
rights of holders of common stock of the Registrant.

10.1 Multex.com, Inc. 1999 Stock Option Plan, as amended and restated as of
June 29, 2000 (incorporated by reference to Exhibit 99.1 of
Registrant's Registration Statement on Form S-8 (Registration No.
333-45998)). (*)

10.2 Form of Written Compensation Agreement between Multex.com, Inc. and
Christopher Feeney (incorporated by reference to Exhibit 99.4 of our
Registration Statement on Form S-8 (Registration No. 333-45998)). (*)

21.1 Subsidiaries of the Registrant.

23.1 Consent of Ernst & Young LLP.

* Management contract or compensatory plan or arrangement.

(d) FINANCIAL STATEMENT SCHEDULES

See Item 14(a) 2 above.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, Multex.com, Inc. has duly caused this Report to be signed
on its behalf by the undersigned, thereunto duly authorized in the City of New
York, State of New York, on this 29th day of March, 2002.

MULTEX.COM, INC.

By: /s/ Isaak Karaev
------------------------------
Isaak Karaev
Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed by the following persons on behalf of Multex.com,
Inc. and in the capacities indicated as of March 29, 2002.

By: /s/ Isaak Karaev
----------------------------------------------------
Isaak Karaev
Chairman of the Board of Directors and
Chief Executive Officer
(Principal Executive Officer)

By: /s/ Jeffrey S. Geisenheimer
----------------------------------------------------
Jeffrey S. Geisenheimer
Chief Financial Officer and Senior Vice President
(Principal Financial and Accounting Officer)

By: /s/ Homi M. Byramji
----------------------------------------------------
Homi M. Byramji
Senior Vice President and Director

By: /s/ I. Robert Greene
----------------------------------------------------
I. Robert Greene
Director

By: /s/ Lennert J. Leader
---------------------------------------------------
Lennert J. Leader
Director

By: /s/ John Tugwell
----------------------------------------------------
John Tugwell
Director

By: /s/ Devin N. Wenig
----------------------------------------------------
Devin N. Wenig
Director