***Profitability Net of One-Time Gain Exceeds Guidance***
ValueClick, Inc. (Nasdaq: VCLK), the single-source provider of media, technology and services across all major interactive marketing channels, today reported financial results for the first quarter ended March 31, 2004. Performance in the quarter exceeded the Company's previously issued guidance for revenue, net income per share and EBITDA, on both a reported basis and net of the one-time $8.0 million gain associated with the Company's sale of its ownership interest in ValueClick Japan.
For the quarter ended March 31, 2004, ValueClick reported revenue of $36.7 million, which was an increase of $17.2 million, or 89 percent, from revenue of $19.5 million for the first quarter of 2003. First quarter 2004 results include a full quarter of operations from Search123, Commission Junction and Hi-Speed Media, acquired in late May 2003, early December 2003 and late December 2003, respectively.
First quarter 2004 income before taxes and minority interest was $15.0 million compared to $1.6 million for the first quarter of 2003. Net income for the first quarter of 2004 was $13.4 million, or $0.16 per diluted common share, compared to net income of $1.2 million, or $0.02 per diluted common share, for the first quarter of 2003. First quarter 2004 net income before interest, taxes, depreciation, and amortization (EBITDA) was $16.9 million compared to $2.1 million for the first quarter of 2003.
First quarter 2004 financial results included a one-time $8.0 million, or $0.10 per fully diluted share, gain on the sale of the Company's equity interest in ValueClick Japan, which closed on March 29, 2004. Excluding this one-time gain, ValueClick's first quarter 2004 net income per fully diluted share and EBITDA exceeded the Company's previously issued guidance.
The March 31, 2004 consolidated balance sheet remained strong with $230.5 million in cash, cash equivalents and marketable securities, $222.4 million in working capital and $292.5 million in total stockholders' equity. Cash provided by operations for the first quarter of 2004 was approximately $10.3 million, and as of March 31, 2004 the cash, cash equivalents and marketable securities balance represented $2.92 per outstanding common share.
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this release.
Based on its first quarter results and outlook for the first quarter of 2004, ValueClick is raising its fiscal year 2004 guidance. Please note that previously issued guidance included a full year's expected contribution from ValueClick Japan, while the Company's new guidance does not include any contribution from ValueClick Japan after the first quarter of 2004.
For the second quarter of 2004, ValueClick anticipates revenue in the range of $35.0 million to $36.0 million, an approximate 77 percent increase in revenue from the second quarter of 2003. The Company expects diluted net income per share of approximately $0.06 in the second quarter of 2004. EBITDA for the second quarter of 2004 is expected to be in the range of $8.5 million to $9.5 million.
For fiscal year 2004, ValueClick is raising its guidance to $147 to $150 million, up from $145 to $148 million, excluding the one-time gain from ValueClick Japan in the first quarter.
"While we realised a significant one-time gain from the ValueClick Japan transaction, the performance of our ongoing operations exceeded our expectations," said James Zarley, chairman and chief executive officer of ValueClick. "The momentum in our collective businesses enables us to raise our 2004 revenue guidance from its original level, in spite of removing Japan's contribution from the remaining three quarters of 2004. We are off to a good start in 2004, and we are working hard to build upon our strong first quarter operating performance."
Carl White, European managing director of ValueClick added: "We saw a great performance across all business units in Q1 and are delighted about our initial 2004 achievements. Integration with Commission Junction has proved as successful as anticipated and from herein we are keen to maintain focus on growing the European business into 2004 with more customer successes."
Webcast and other information
A webcast by James Zarley, chairman and chief executive officer, providing other information of potential interest to investors is available in the Investor Relations section of the Company's website (www.valueclick.com).
Further information regarding ValueClick's financial results is available on request.
Tel: +44 (0) 208 785 5800
Sarah Hewitt/Lauren Caldwell
Tel: +44 (0) 1494 434434
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 (http://media.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.
Commission Junction (www.cj.com) provides advanced performance marketing solutions that help marketers increase online leads and sales. By facilitating strategic relationships between advertisers and publishers, Commission Junction leverages its proven expertise in affiliate marketing and search marketing to drive measurable results for its clients.
Mediaplex (www.mediaplex.com) provides technology and services that help advertisers, agencies and Web site 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.
Published on: 12:00AM on 28th April 2004