<PAGE>
 
                                                                    Exhibit 13.1



                               Amended Pages to
                      1998 Annual Report to Stockholders
               ------------------------------------------------




<PAGE>
 
Selected Financial Data

The following selected financial data should be read in conjunction with the
financial statements and notes thereto and "Management's Discussion & Analysis
of Financial Condition and Results of Operations" included elsewhere in this
Annual Report. The statement of operations data for the years ended December 31,
1998, 1997 and 1996 and the balance sheet data as of December 31, 1998 and 1997
are derived from the audited financial statements of EarthWeb, and are included
elsewhere in this Annual Report. The balance sheet data as of December 31, 1996
and 1995 and the statement of operations data for the year ended December 31,
1995 are derived from the audited financial statements of EarthWeb not included
herein. The historical results presented here are not necessarily indicative of
future results.

<TABLE>
<CAPTION>
                                                             Year Ended December 31,

Selected Financial Data                              1998                 1997         1996         1995
Dollars in thousands, except per share data
--------------------------------------------------------------------------------------------------------
<S>                                                  <C>                  <C>         <C>          <C>
STATEMENT OF OPERATIONS DATA:
Revenues                                       $    3,349           $    1,135   $      472   $       --
Cost of revenues                                    2,131                1,358          314           --
Gross profit (deficit)                              1,218                 (223)         158           --
--------------------------------------------------------------------------------------------------------
Operating expenses
 Product development                                1,476                1,003           68           36
 Sales and marketing                                4,547                1,018          252           --
 General and administrative                         3,356                2,567        1,802          626
 Depreciation and amortization                      1,116                  893          101           42
   Total operating expenses                        10,495                5,481        2,223          704
--------------------------------------------------------------------------------------------------------
Loss from operations                               (9,277)              (5,704)      (2,065)        (704)

Interest and other income, net                        307                  267           61           (1)
Loss from continuing operations                    (8,970)              (5,437)      (2,004)        (705)
Loss from discontinued operations                      --               (2,384)         (42)          65
Net Loss                                           (8,970)              (7,821)      (2,046)        (640)
-------------------------------------------------------------------------------------------------------- 

Basic and diluted net loss per share
 from continuing operations                         (2.37)               (1.86)       (0.69)       (0.24)
Basic and diluted net loss per share
 from discontinued operations                          --                (0.81)       (0.01)        0.02
Basic and diluted net loss per share               $(2.37)              $(2.67)      $(0.70)  $    (0.22)
--------------------------------------------------------------------------------------------------------   

Weighted average shares outstanding
 used in computing basic and diluted
 net loss per share                             3,782,575            2,925,000    2,925,000    2,925,000

Note: On a pro forma basis the net loss per share for 1998 was $1.53. The pro
forma share amount is computed by using the sum of the weighted average number
of shares of common stock and the 2,439,833 shares of common stock issued upon
conversion of preferred stock.

 
                                                                     As of December 31,
Dollars in thousands                                 1998                 1997         1996         1995
--------------------------------------------------------------------------------------------------------
BALANCE SHEET DATA:
Cash and cash equivalents                      $   25,292           $    4,775   $    3,779   $      886
Working capital                                    23,705                4,317        3,315          865
Total assets                                       30,477                8,514        5,652        1,393
Long-term obligations                                  66                   85           94           25
Stockholders' equity                               26,852                6,445        4,259        1,251
</TABLE>

                                       
                                     -10-

<PAGE>
 
<TABLE>
<CAPTION>
                                                                                     Year Ended December 31,
<S>                                                                           <C>           <C>           <C>
 
Statements of Operations                                                             1998          1997          1996

Revenue                                                                       $ 3,349,165   $ 1,135,141   $   472,109
Cost of revenues                                                                2,131,593     1,358,293       314,332
---------------------------------------------------------------------------------------------------------------------
 
Gross profit (deficit)                                                          1,217,572      (223,152)      157,777
--------------------------------------------------------------------------------------------------------------------- 

Operating expenses:
 Product development                                                            1,475,665     1,003,422        68,410
 Sales and marketing                                                            4,546,839     1,018,313       252,287
 General and administrative                                                     3,356,567     2,566,670     1,801,744
 Depreciation and amortization                                                  1,115,698       892,600       100,859
--------------------------------------------------------------------------------------------------------------------- 
 Total operating expenses                                                      10,494,769     5,481,005     2,223,300
--------------------------------------------------------------------------------------------------------------------- 
Loss from operations                                                           (9,277,197)   (5,704,157)   (2,065,523)
 
Interest and other income, net                                                    307,409       267,139        61,497
--------------------------------------------------------------------------------------------------------------------- 
Loss from continuing operations                                                (8,969,788)   (5,437,018)   (2,004,026)
Discontinued operations:
 Loss from discontinued operations                                                     --    (2,142,934)      (42,255)
 Loss on disposal of discontinued operations                                           --      (240,585)           --
---------------------------------------------------------------------------------------------------------------------
 
Net loss                                                                      $(8,969,788)  $(7,820,537)  $(2,046,281)
--------------------------------------------------------------------------------------------------------------------- 
Basic and diluted net loss per share from continuing operations               $     (2.37)  $     (1.86)  $     (0.69)

Basic and diluted net loss per share from discontinued operations             $        --   $     (0.81)  $     (0.01)
 
Basic and diluted net loss per share                                          $     (2.37)  $     (2.67)  $     (0.70)
--------------------------------------------------------------------------------------------------------------------- 
Weighted average shares of common stock outstanding
 used in computing basic and diluted net loss per share                         3,782,575     2,925,000     2,925,000
---------------------------------------------------------------------------------------------------------------------
</TABLE> 
The accompanying notes are an integral part of these financial statements.

                                            -17-
<PAGE>
 

Risks and Uncertainties

The Company has a limited operating history and its prospects are subject to the
risks, expenses and uncertainties frequently encountered by companies in the new
and rapidly evolving markets for Internet products and services. These risks
include the failure to develop and extend the Company's online service brands,
the rejection of the Company's services by Web consumers, vendors and/or
advertisers, the inability of the Company to maintain and increase the levels of
traffic on its online services, as well as other risks and uncertainties. In the
event that the Company does not successfully implement its business plan,
certain assets may not be recoverable.

Use of Estimates

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements and reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from these estimates. The Company's significant estimates include
the useful lives of fixed assets and intangibles and the accounts receivable
allowance for doubtful accounts.

Long-Lived Assets

The carrying amount of assets is reviewed on a regular basis for the existence
of facts or circumstances, both internally and externally, that suggest
impairment. To date no such impairment has been indicated except as disclosed in
Note 3. The Company determines if the carrying amount of a long-lived asset is
impaired based on anticipated undiscounted cash flows before interest. In the
event of impairment, a loss is recognized based on the amount by which the
carrying amount exceeds fair value of the asset. Fair value is determined
primarily using the anticipated cash flows before interest, discounted at a rate
commensurate with the risk involved.

Net Loss Per Share

In 1997, the Financial Accounting Standards Board ("FASB") issued Statement of 
Financial Accounting Standards No. 128, "Earnings per Share" ("SFAS No. 128"). 
SFAS No. 128 replaced primary and fully diluted earnings per share with basic 
and diluted earnings per share. Unlike primary earnings per share, basic 
earnings per share excludes any dilutive effect of options, warrants and 
convertible securities. Diluted earnings per share is very similar to fully 
diluted earnings per share. Basic earnings per share is computed using the 
weighted-average number of common shares outstanding during the period. Diluted 
earnings per share is computed using the weighted-average number of common and 
common stock equivalent shares outstanding during the period. Common equivalent 
shares have been excluded from the computation as their effect is antidilutive 
for all years. Net loss per share amounts for all periods have been restated to 
conform to SFAS No. 128 requirements. There were 200,090 and 498,692 options 
outstanding as of December 31, 1997 and 1998 that could potentially dilute 
earnings per share in the future. Such options were not included in the 
computation of diluted loss per share because to do so would have been 
antidilutive for all periods presented.

The pro forma net loss per share is computed by dividing the net loss by the sum
of the weighted average number of shares of common stock including the shares
issued as a result of the assumed conversion of all outstanding shares of
Convertible Preferred Stock.

                                                                            1998
--------------------------------------------------------------------------------
Pro forma basic and diluted net loss per share                           $(1.53)
--------------------------------------------------------------------------------
Shares used in computing pro forma basic diluted
 net loss per share                                                   5,880,467


Stock Split

The company authorized and implemented a 0.65-for-one reverse stock split in
connection with the initial public offering of the Company's common stock on
November 10, 1998. All references to the number of shares of common stock have
been retroactively restated in the financial statements to reflect the effect of
this transaction.

                                             22
<PAGE>

for awards in 1998 and 1997 consistent with the provisions of SFAS No. 123, the
Company's net loss would have been adjusted to the pro forma amounts indicated
below.

<TABLE>
<CAPTION>
                                                         December 31, 1998   December 31, 1997
----------------------------------------------------------------------------------------------
<S>                                                      <C>                 <C>
Net loss -- as reported                                        $(8,969,788)        $(7,820,537)
Net loss -- pro forma                                          $(9,022,961)        $(7,860,720)
Basic net loss per share -- as reported                        $     (2.37)        $     (2.67)
Basic net loss per share -- pro forma                          $     (2.39)        $     (2.69)
</TABLE>

The fair value of each option grant is estimated on the date of the grant using
the "Black-Scholes option-pricing model" with the following weighted average
assumptions used for grants for the years ended December 31, 1998 and 1997; zero
dividend yield; no volatility (all options were issued prior to the
effectiveness of the IPO); a weighted average risk-free interest rate of 5.34%
and 6.90%, respectively; and expected lives of 4 and 5 years, respectively.

During the year ended December 31, 1998, the Company issued stock options with
strike prices below the then fair market value and, as a result, recorded
deferred compensation of approximately $368,000. Deferred compensation is
amortized over the four-year vesting period of the options. As of December 31,
1998, compensation cost of approximately $41,000 has been recognized.

1998 Employee Stock Purchase Plan  The Company's 1998 Employee Stock Purchase
Plan (the "Stock Purchase Plan") was approved by the Board of Directors in
November 1998. The Stock Purchase Plan is intended to qualify as an "employee
stock purchase plan" under Section 423 of the Code in order to provide employees
of the Company with an opportunity to purchase Common Stock through payroll
deductions. An aggregate of 159,000 shares of the Company's Common Stock has
been reserved for issuance under the Stock Purchase Plan and is available for
purchase thereunder, plus an annual increase to be added on the first day of the
Company's fiscal year beginning in 2000 equal to the lesser of (i) 400,000
shares, (ii) two percent (2%) of the outstanding shares on such date or (iii) a
lesser number of shares determined by the Compensation Committee. At December
31, 1998, employee contributions to the Plan were approximately $66,000, which
will purchase shares of common stock on July 31, 1999.

8. Income Taxes

The components of the net deferred tax asset as of December 31, 1998 and 1997
consists of the following:

<TABLE>
<CAPTION>
                                                                    1998          1997
-----------------------------------------------------------------------------------------
<S>                                                             <C>           <C>
Operating loss carryforward                                     $ 7,328,880   $ 3,325,050
Depreciation of fixed assets and amortization of intangibles         13,856       254,250
-----------------------------------------------------------------------------------------
Net deferred tax asset                                            7,342,736     3,579,300
Less, Valuation allowance                                        (7,342,736)   (3,579,300)
Deferred tax asset                                              $         0   $         0
-----------------------------------------------------------------------------------------
</TABLE>

The difference between the Company's U.S. federal statutory rate of 35%, as well
as its state and local rate, net of a federal benefit of 7%, when compared to
its effective rate of 0% is principally comprised of its valuation allowance.

As of December 31, 1998, the Company has a net operating loss carryforward for
Federal income tax purposes of approximately $16,300,000. The carryforwards will
begin to expire in 2011 if not used. The net deferred tax asset has been fully
reserved due to the uncertainty of the Company's ability to realize this asset
in the future.


                                      27
<PAGE>
 
Quarterly Results of Operations (Unaudited)

The following table sets forth unaudited quarterly statement of operations data
for each of the four quarters during the years ended December 31, 1997 and 1998.
In the opinion of management, this information has been prepared substantially
on the same basis as the audited financial statements appearing elsewhere in
this Annual Report, and all necessary adjustments, consisting only of normal
recurring adjustments, have been included in the amounts stated below to present
fairly the unaudited quarterly results. The quarterly data should be read in
conjunction with the audited financial statements of EarthWeb and the notes
thereto appearing elsewhere in this Annual Report. The operating results for any
quarter are not necessarily indicative of the operating results for any future
period.
<TABLE>
<CAPTION>
 
Quarter ended              March 31,   June 30,   Sept. 30,   Dec. 31,   March 31,   June 30,   Sept. 30,   Dec. 31,
                                1997       1997        1997       1997        1998       1998        1998       1998
--------------------------------------------------------------------------------------------------------------------
<S>                        <C>         <C>        <C>         <C>        <C>         <C>        <C>         <C>
Dollars in thousands
Total revenues                   330        262         194        349         308        666         944       1431
Cost of revenues                 258        343         346        411         395        398         601        737
Gross profit (deficit)            72        (81)       (152)       (62)        (87)       268         343        694
-------------------------------------------------------------------------------------------------------------------- 
Operating expenses:
Product
 development                     237        239         291        236         246        310         434        485
Sales and marketing              159        265         328        266         333        477       1,082      2,655
General and
 administrative                  610        686         706        565         605        726         914      1,111
Depreciation and
 amortization                     63         77         199        554         233        244         311        328
Total operating
 expenses                      1,069      1,267       1,524      1,621       1,417       1757       2,741      4,579
--------------------------------------------------------------------------------------------------------------------
Loss from
 operations                     (997)    (1,348)     (1,676)    (1,683)     (1,504)    (1,489)     (2,398)    (3,885)
Interest and other
 income, net                      41         26         125         75          47         30          42        187
--------------------------------------------------------------------------------------------------------------------
Loss from continuing
 operations                     (956)    (1,322)     (1,551)    (1,608)     (1,457)    (1,459)     (2,356)    (3,698)
Loss from
 discontinued
 operations                     (172)      (377)       (631)    (1,204)         --         --          --         --
Net loss                     $(1,128)   $(1,699)    $(2,182)   $(2,812)    $(1,457)   $(1,459)    $(2,356)   $(3,698)
--------------------------------------------------------------------------------------------------------------------
Basic and diluted
 net loss per share from
 continuing operations       $ (0.33)   $ (0.45)    $ (0.53)   $ (0.55)    $ (0.50)   $ (0.50)    $ (0.70)   $ (0.62)
Basic and diluted
 net loss per share from
 discontinued operations       (0.06)     (0.13)      (0.22)     (0.41)         --         --          --         --
--------------------------------------------------------------------------------------------------------------------
Basic and diluted
 net loss per share          $ (0.39)   $ (0.58)    $ (0.75)   $ (0.96)    $ (0.50)   $ (0.50)    $ (0.70)   $ (0.62)

Pro forma basic and
 diluted net loss per
 share from continuing
 operations(1)                                                             $(0.27)    $(0.27)     $(0.41)    $(0.53)

Pro forma basic and 
 diluted net loss per 
 share from discontinued
 operations(1)                                                                 --         --         --          --
--------------------------------------------------------------------------------------------------------------------
Pro forma basic and diluted
 net loss per share(1)                                                     $(0.27)    $(0.27)     $(0.41)    $(0.53)

(1) The pro forma per share amounts are computed by using the sum of the weighted average number of shares of common stock and the
2,439,833 shares of common stock issued upon conversion of preferred stock.
</TABLE>

                                      30