ValueClick Exceeds Guidance for Third Quarter 2003, Raises Guidance for Fourth Quarter and Full Year 2003
Fourth Consecutive Quarter of GAAP Operating Income and Net Income Growth
WESTLAKE VILLAGE, Calif.--Oct. 28, 2003-- ValueClick, Inc. (Nasdaq: VCLK), the single-source provider of digital marketing media, technology and services across all major online marketing channels, today reported financial results for the third quarter ended September 30, 2003. Performance in the third quarter of 2003 exceeded the Company`s previously issued guidance, and was ValueClick`s fourth consecutive quarter of operating income and net income growth.
For the quarter ended September 30, 2003, ValueClick reported revenue of $22.7 million, which exceeded the Company`s previously issued guidance of $21.5 million by approximately $1.2 million and was an increase of $5.4 million, or 31 percent, from revenue of $17.3 million for the third quarter of 2002. Third quarter 2003 results include a full quarter of the Search123 operations, acquired in late May 2003.
Third quarter 2003 pre-tax income was $2.1 million compared to a pre-tax loss of $0.6 million for the third quarter of 2002. GAAP net income for the third quarter of 2003 of $2.0 million, or $0.03 per diluted common share, exceeded the Company`s previously issued guidance of $0.02 and was an improvement compared to a net loss of $0.8 million, or $0.01 per diluted common share, for the third quarter of 2002. GAAP net income before interest, taxes, depreciation, and amortization, or EBITDA(1), was $3.6 million for the third quarter of 2003 compared to a negative EBITDA of $0.6 million for the third quarter of 2002.
The September 30, 2003 consolidated balance sheet remained strong with $227.7 million in cash, cash equivalents and marketable securities, $230.3 million in working capital and $231.3 million in total stockholders` equity. Cash provided by operations for the quarter was approximately $3.0 million, and as of September 30, 2003 the cash, cash equivalents and marketable securities balance represented $3.04 per outstanding common share.
On October 10, ValueClick announced its intention to acquire Commission Junction, a leading provider of affiliate marketing technology and services, for an aggregate consideration of approximately $58 million, comprised of cash, ValueClick common stock and options to acquire ValueClick common stock. The Company anticipates the Commission Junction acquisition will close in December 2003, subject to customary closing conditions and regulatory approvals.
Based on its third quarter results and outlook for the fourth quarter, ValueClick is raising its guidance for the fourth quarter and fiscal year 2003. For the fourth quarter, ValueClick anticipates revenue of approximately $25.0 million, an approximate 33 percent increase in revenue from the fourth quarter of 2002. The Company expects diluted net income per share of approximately $0.04 in the fourth quarter of 2003. EBITDA for the fourth quarter of 2003 is expected to be in the range of $4.5 million to $4.9 million.
For fiscal year 2003, ValueClick is raising its total revenue guidance from the range of $85.0 to $86.0 million to the range of $87.0 million to $87.5 million, and expected diluted net income guidance from approximately $0.09 per share to approximately $0.10 per share. EBITDA for 2003 is expected to be in the range of $12.0 million to $13.0 million. The Company`s guidance does not include the operations of Commission Junction.
"ValueClick continues to grow both organically and through its prudent corporate development program," said James Zarley, chairman and chief executive officer of ValueClick. "The third quarter -- our fourth straight with operating and net income growth -- exceeded our guidance and included organic year-on-year revenue growth of approximately 24%, and a solid contribution from our recently-acquired Search123 business. We look forward to closing our pending acquisition of Commission Junction, which we expect will become our second successful acquisition of 2003 and a further enhancement to ValueClick`s position as the single-source provider of digital marketing services."
Third Quarter 2003 Conference Call Today
James Zarley, chairman and chief executive officer, and Sam Paisley, chief financial officer, will present an overview of the results and other factors affecting financial performance for the quarter during a webcast on October 28, 2003 at 1:00 PM PT. Investors and analysts may obtain dial-in information through StreetEvents (www.streetevents.com).
The live webcast and other information of potential interest to investors will be available to the public in the Investor Relations section of the Company`s website (www.valueclick.com). Please allow 15 minutes prior to the call to download and install any necessary audio software. Replay information will be available for seven days after the call and may be accessed at 888-203-1112 for domestic and 719-457-0820 for international callers. The passcode is 202602.
Webcast participants are encouraged to submit questions on financial results and business operations to management prior to the call. Please call 818-575-4677 to leave your question on our Investor Relations voice message system. Questions will be addressed on the live call and should be received no later than 11:00 AM PT on Tuesday, October 28, 2003.
About ValueClick
ValueClick, Inc. (Nasdaq: VCLK) is the single-source provider of media, technology and related services that enable advertisers, agencies and publishers to reach consumers in all major online marketing channels, through our four business units:
• ValueClick Media (www.valueclick.com) provides a wide range of online marketing solutions -- including Web Marketing, Email Marketing, Lead Generation Marketing and Search Marketing -- to create awareness, build brands, deliver targeted visitors, generate leads, drive sales, and grow customer relationships.
• Be Free (www.befree.com) provides measurable, ROI-focused technology and services to help marketers increase online leads and sales, utilizing Affiliate Marketing, Search Marketing, and Automated Merchandising.
• Mediaplex (www.mediaplex.com) provides technology and services that help advertisers, agencies and website publishers manage their online advertising and permission-based email campaigns.
• AdWare (www.adware.com) provides software and services that help advertising agencies and other companies operate their businesses more efficiently, through effective agency management, media management, and content management.
For more information, please visit www.valueclick.com.
This release contains forward-looking statements that involve risks and uncertainties, including trends in online advertising spending and estimates of future online performance-based advertising. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Risk Factors" and elsewhere in filings with the Securities and Exchange Commission made from time to time by ValueClick, including its Annual Report on Form 10-K filed on March 28, 2003, recent quarterly reports on Form 10-Q and current reports on Form 8-K. Other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include the risk that market demand for online advertising, and performance-based online advertising in particular, will not grow as rapidly as predicted. ValueClick undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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