Revenue for the second quarter ended June 30 at online marketing company ValueClick Inc., which owns Commission Junction, ValueClick Media, Mediaplex and PriceRunner, grew 14% over Q2 a year ago to $148.7 million from $130 million, the company reports. Net income for the second quarter reached $17.6 million, compared to $14.4 million a year earlier.
The company also announced it had completed the acquisition of MeziMedia, an operator of U.S. comparison shopping sites, for approximately $95.5 million in cash and additional cash considerations based on performance through Dec. 31, 2009.
The company fell short of previous revenue guidance, citing lower than expected performance in its media division. The media division, which consists of advertising-based services, had revenue of $100.9 million, compared to $93.5 million a year ago. It reported income from operations of $24 million compared to $22.9 million a year earlier.
“The promotion-based sector suffered a downturn that began in late May and became more pronounced in June, which negatively impacted our quarter,” says Tom Vadnais, CEO of ValueClick. “We have reassessed our outlook on the promotion-based business and have taken aggressive steps to bring its costs in line with the changes occurring in this part of the industry. We expect to see the full impact of this cost-cutting initiative in the fourth quarter.” The cost-cutting, according to Vadnais, will be largely in the form of staff reductions.
Based on second quarter performance, the company cut its revenue forecast for the full year from $645 million to $665 million to an estimated $645 million to $660 million.
Revenue in ValueClick’s affiliate marketing operation, which includes Commission Junction, grew 28% to $32.3 million for the quarter, up from $25.2 million a year earlier. The affiliate unit had income from operations of $15.4 million, compared to $12.6 million a year ago.
Revenue in the comparison shopping segment, made up of PriceRunner.com and Shopping.net, reached $8.1 million, up 37% from $5.9 million a year ago. Income from operations was $579,000 compared to $516,000 a year earlier. The technology division’s revenue reached $7.8 million, up 36% from $5.7 million a year ago, with income from operations of $2.9 million, compared to $1.3 million a year earlier.
For the first half, ValueClick reported net income of $36.3 million on revenue of $305.6 million, compared to net income of $24.2 million on revenue of $247.3 million in the year-ago first half.
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