With declines in its comparison shopping and search marketing businesses, ValueClick reported a 2.5% year-over-year drop in third quarter revenue to $152.9 million.
ValueClick Inc., citing declines in its comparison shopping and search marketing businesses, posted a 2.5% decline in revenue for the third quarter ended Sept. 30, to $152.9 million from $156.9 million a year ago. Display advertising performed better than expected and affiliate and technology results were in line with projections, the company says.
Q3 net income, hit by stock option expense and tax adjustments, fell 88% year-over-year to $2.0 million from $16.8 million.
"We stated in mid-July that increasing economic uncertainty would impact the second half of the year, and our third quarter results were in line with this revised outlook," says CEO Tom Vadnais.
ValueClick’s operations include comparison shopping engines Smarter.com and PriceRunner; coupon site CouponMountain.com; affiliate marketing network Commission Junction; and online advertising units ValueClick Media and Mediaplex.
For the nine months ended Sept. 30, ValueClick’s revenue fell 6.5% to $462.5 million from $492.8 million a year ago, as net income declined 29% to $37.7 million from $53.1 million.
The company projected fourth quarter revenue within a range of $140 million to $145 million. It lowered its full-year revenue guidance to a range of $633 million to $638 million, down from previous guidance of $655 million to $675 million.
"While the industry`s growth outlook for the rest of the year is more cautious, we have the experience and management team depth to continue to drive strong margins and free cash flow in this challenging market," Vadnais says.
ValueClick sold two non-core assets on Oct. 20-the AdVault advertising agency management software suite, and the ink-jet e-commerce business. The divested units represented less than 4% of ValueClick’s consolidated revenue, the company says.