In its second-largest acquisition, Amazon buys the company for $970 million.
The owner of Commission Junction reports a 10% increase in affiliate marketing revenue.
Second quarter revenues for web marketing company ValueClick Inc. fell 4.3%, to $99.6 million from $104.1 million in the same period last year. The company reported that for the second quarter ended June 30, net income decreased year over year 19.5%, to $12.0 million from $14.9 million.
ValueClick sells online marketing services in affiliate and search marketing, display advertising, lead generation, ad serving and related technologies, and comparison shopping. ValueClick’s brands include Commission Junction, ValueClick Media, Mediaplex, Smarter.com, CouponMountain.com, and PriceRunner.
“I’m pleased with the team’s performance in the quarter, as we generated better-than-expected financial results,” says Jim Zarley, CEO. “Excluding the $11 million negative impact of one customer change in our own and operated web site segment, our consolidated revenue grew 7% year over year.”
The company also says that is has bought Investopedia.com, a financial and investment information site, from Forbes Inc. ValueClick paid $42 million for the company in the cash deal. ValueClick says Investopedia will earn $10 million in revenue this year.
The acquisition, announced this week, did not affect the second quarter results.
By segment for the second quarter, ValueClick reports:
- Media: revenue of $31.6 million, down 2.5% from $32.4 million a year earlier; segment income of $7.6 million, up 4% from $7.3 million a year earlier.
- Comparison shopping and search: revenue of $32.0 million, down 17.5% from $38.8 million a year earlier; segment income of $5.5 million, down 44.4% from $9.9 million a year earlier.
- Affiliate marketing: revenue of $28.7 million, up 10% from $26.1 million; segment income of $15.3 million, up 24.4% from $12.3 million.
- Technology: revenue of $7.6 million up 7% from $7.1 million; segment income of $3.8 million up 8.6% from $3.5 million.