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--- Company posts record revenue for Abacus and overall Data Segment;
updates 2004 outlook ---

London, October 29, 2004 -- DoubleClick Inc. (NASDAQ: DCLK), the leading provider of data and technology solutions for marketers, advertising agencies and web publishers, today announced financial results for the third quarter ended September 30, 2004, and updated its business outlook for 2004.

Third Quarter Results
DoubleClick reported revenue for the third quarter of $81.0 million versus $74.8 million in the year-ago period. GAAP net income for the most recent quarter was $15.4 million, or $0.12 per share, compared with $6.3 million, or $0.04 per share, in the third quarter of 2003. The Company achieved gross margins of 73.4% during the quarter compared to 66.1% in the year-ago period. EBITDA was $23.9 million for the third quarter of 2004 compared to $23.8 million in 3Q03. Total GAAP operating expenses were $52.0 million in the quarter, versus $45.7 million in the third quarter of 2003. Total company headcount was 1,526 as of September 30, 2004, against 1,214 twelve months prior.

“I am pleased to report that we have made good progress in our core businesses,” said Kevin Ryan, Chief Executive Officer, DoubleClick. “The Data segment reported record revenues and Abacus operating margins were at an all-time high, while gross and operating margins continued to expand in Ad Management. In addition, our new Performics division performed ahead of our expectations. We believe that recent initiatives taken to enhance our core businesses have laid the foundations for improved performance by the Company. We continue to evaluate every aspect of our business, with a goal of maximizing our potential for growth.”

GAAP earnings and EBITDA for the third quarter of 2004 benefited from a non-operating gain of approximately $7.1 million from the Company’s sale of its 15% interest in AdLINK Internet Media AG. In addition, DoubleClick recorded a restructuring credit relating to its Louisville, Colorado facility, which lowered operating expenses by $4.5 million.

GAAP net income and EBITDA were negatively affected in 3Q04 by a write-down of DoubleClick’s Enterprise Marketing Solutions (EMS) business, which consists of its Campaign Management and Marketing Resource Management products. The write-down was necessary primarily due to lower than expected revenue generated to date and reduced estimates for future revenue from the Company’s Campaign Management products. A valuation by the Company, with the assistance of a third party, and based on recent market multiples of publicly traded comparables and a discounted cash flow analysis, resulted in an impairment charge of $5.6 million.

Third quarter 2003 GAAP earnings were negatively impacted by $8.3 million in accelerated depreciation charges associated with the relocation of the Company’s New York headquarters and the termination of the lease for its San Francisco facility. Third quarter 2003 GAAP earnings and EBITDA benefited from a net restructuring credit of $2.2 million associated with these facilities and $1.4 million received by the Company in connection with an insurance claim.

Cash Flow and Balance Sheet
DoubleClick generated $22.1 million in cash flow from operations during the third quarter. The Company had $523.9 million in cash and marketable securities, and had a net cash position of $388.9 million, or $3.10 per share, as of September 30, 2004. This reflects the $9.5 million received for the sale of DoubleClick’s AdLINK shares and the $38.8 million used in connection with the open market repurchase of approximately 6.4 million shares of DoubleClick’s common stock in 3Q04.

Data
DoubleClick reported Data segment revenue of $33.1 million in 3Q04, compared to $31.3 million in 3Q03. Abacus quarterly revenue was $30.4 million versus $28.8 million in the year-ago period. Data Management Solutions (DMS) recorded $2.8 million in revenue for 3Q04 against the year-ago quarter’s $2.5 million. Overall Data gross margins were 73.0% for the quarter, against 71.7% in 3Q03. Data operating margins before corporate expenses were 39.1%, versus 35.3% a year ago.

Data segment quarterly gross and operating margins improved compared to 3Q03 primarily because of increased revenues in each of the segment’s divisions. Margins also improved due to slightly higher gross margins and lower operating expenses in Abacus. DMS revenues came in lower than DoubleClick’s prior outlook primarily due to the timing of some product installations.

During the quarter, DoubleClick added 47 net new Abacus Alliance members globally, bringing the total to over 2,400. In addition, the Company has signed over 20 new deals for the use of its other Data products since the beginning of 3Q04.

“We are very pleased that the Data Segment achieved record revenues, gross profits, and operating profits in the quarter,” said David Rosenblatt, President of DoubleClick. “The measures we recently took to reorganize that segment paid off, as we saw year-on-year quarterly revenue increases across the board in Data, including in the Abacus U.S. Business-to-Consumer, U.S. Business-to-Business, and International Alliances.”

TechSolutions
The TechSolutions segment reported third quarter revenue of $47.8 million versus $43.5 million in 3Q03. The year-over-year improvement in revenue is primarily a result of the SmartPath and Performics acquisitions coupled with an increase in Email revenues. This increase more than offset the decline in Ad Management revenue.

TechSolutions gross margins were 73.7%, an increase from 62.0% in the September quarter of 2003. Gross margins improved primarily as a result of a decrease in cost of revenue. TechSolutions operating margins before corporate expenses were negative 2.0%, versus negative 4.1% in the third quarter of 2003. 3Q04 TechSolutions expenses were adversely affected by the EMS write-down of approximately $5.6 million, while 3Q03 TechSolutions expenses included roughly $6.4 million in accelerated depreciation charges related to the Company’s facilities.

Ad Management
The Company’s Ad Management revenue was $29.8 million in 3Q04 versus $31.0 million in the year-ago period. The year-over-year revenue decline was principally due to pricing declines outweighing volume increases in the Company’s Publisher business. This decline was partially offset by an increase in revenues from DoubleClick’s Advertiser products.

DoubleClick has recently signed several new contracts for use of its Ad Management solutions. These wins include Date.com, UNext, Universal McCann Asia Pacific/Cathay Central, and Wieden + Kennedy. In addition, the Company’s Rich Media product was fully certified for use on AOL and MSN.

Marketing Automation
The Company’s Marketing Automation products had revenue of $13.0 million in the most recent quarter, against $12.5 million in 3Q03. The year-over-year revenue increase was due to the acquisition of SmartPath and organic growth from the Email business, which was partially offset by a shortfall in Campaign Management revenue.

New Marketing Automation deals have been struck with clients including the American Homeowners Association, British American Tobacco, Capital One, CoolSavings, FOLKSAM, InterContinental Hotels Group, and Patagonia.

“Our Email revenue continued to grow year-over-year in the quarter and the business remained profitable,” added Ryan. “Nonetheless, we are not satisfied with the results for the rest of Marketing Automation and we continue to explore ways to improve the performance of this division.”

Performics
DoubleClick acquired privately-held Performics on June 24, 2004. The results for this new division are now included in the TechSolutions segment. Performics recorded revenue of $5.1 million in 3Q04, $1.1 million over 3Q04 guidance.

Agreements to use Performics’s solutions have recently been reached with American Girl, AT&T Wireless, Blockbuster, The Body Shop, Creative Catalogs, Crutchfield, Finishline, OfficeMax, Safeway, and Wells Fargo.

Revised 2004 Outlook
DoubleClick is adjusting its full-year 2004 outlook due to lower estimated revenue from Marketing Automation and DMS and better-than-anticipated results from Abacus and Performics. The revised guidance takes into account the items described above that impacted 3Q04 results.

Fourth Quarter 2004
DoubleClick now expects 4Q04 revenue to be between $72 million and $77 million. The Company expects total Company gross margins to be in the low 70s percentage range. GAAP operating expenses are expected to be between $50 million and $52 million. Items in interest and other, net and taxes are expected to be approximately $1 million, based on an assumed tax rate of approximately 15%. The Company anticipates recording GAAP earnings of between $0.01 and $0.04 per share.

The Company’s segment projections for 4Q04 are as follows:

* TechSolutions revenue is expected to be between $46 million and $50 million, including $28 million to $31 million from Ad Management and $11 million to $13 million from Marketing Automation. Approximately $6 million to $7 million of TechSolutions' revenue is expected to be generated by Performics. Overall TechSolutions gross margins are expected to be in the mid 70s percentage range.

* Data revenue is expected to be between $25 million and $28 million, including approximately $3 million to $3.5 million from DMS; overall Data gross margins should be in the mid 60s percentage range.

Full Year 2004
DoubleClick now expects 2004 revenue to be between $290 million and $295 million.

The Company expects total Company gross margins to be in the high 60s to low 70s percentage range. GAAP operating expenses are expected to be between $187 million and $189 million, including the approximately $5.6 million charge for the EMS write-down partially offset by the $4.5 million gain related to the Company’s Louisville facility. Items in interest and other, net and taxes are expected to be approximately $15 million, including the $2.4 million distribution from an affiliate in 1Q04 and the $7.1 million gain from the sale of AdLINK shares in 3Q04. This guidance is based on an assumed tax rate of approximately 15%. The Company anticipates recording GAAP earnings of between $0.21 and $0.24 per share.

DoubleClick’s previous 2004 outlook was for revenue of between $290 million and $305 million; operating expenses of between $185 million and $195 million; interest and other, net and taxes of approximately $3.5 million; and GAAP earnings of $0.13 to $0.17 per share.

The Company’s segment projections for full year 2004 are as follows:

* TechSolutions revenue is expected to be between $185 million and $190 million, including $123 million to $126 million from Ad Management and $50 million to $53 million from Marketing Automation. Approximately $11 million to $12 million of TechSolutions' revenue is expected to be generated by Performics. Overall TechSolutions gross margins are expected to be in the low 70s percentage range.

* Data revenue is expected to be between $103 million and $106 million, including $11 million to $12 million from DMS; overall Data gross margins should be in the mid 60s percentage range.

“We continued to keep a tight rein on operating expenses even as we ramped up investment in key areas,” said Bruce Dalziel, Chief Financial Officer, DoubleClick. “This should enable us to increase 2004 GAAP net income while launching several new products and feature enhancements in Ad Management and Data. This in turn should help us maintain profitability and our leading position in these areas.”

Conference Call
The DoubleClick Conference Call to discuss this earnings press release took place on Thursday 28 October 2004 and is available on a replay basis on the Company’s website www.doubleclick.net under Investor Relations or at http://ir.doubleclick.net. The Webcast is also being distributed over CCBN’s Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com or by visiting any of the investor sites in CCBN’s Individual Investor Network. Institutional investors can access the call via www.streetevents.com.

Additional financial metrics can be found in the "Financial Reports" section of DoubleClick's Investor Relations website, at ir.doubleclick.net.

About DoubleClick
DoubleClick is the leading provider of solutions for advertising agencies, marketers and web publishers to plan, execute and analyse their marketing programs. DoubleClick’s marketing solutions -- online advertising, search engine marketing, email marketing, database marketing, and marketing resource management -- help clients yield the highest return on their marketing dollar. In addition, the company’s marketing analytics tools help clients measure performance within and across channels. DoubleClick Inc. has global headquarters in New York City and maintains 22 offices around the world.

Note: This press release includes forward-looking statements, including earnings and revenue projections and plans set forth under the sections titled “Revised 2004 Outlook” above, as well as sentences using the words “expects,” “plans,” “should,” or “believes” and all other statements that are not purely historical. The results or events predicted in these statements may vary materially from actual future events or results. Factors that could cause actual events or results to differ from anticipated events or results include: lack of growth or decline in online advertising or marketing, changes in government regulation, intense competition in DoubleClick’s industry, failure to manage the integration of acquired companies, failure to successfully manage the Company’s international operations and other risks that are contained in documents which the Company files from time to time with the Securities and Exchange Commission, including the Company’s most recent reports on Form 10-K and Form 10-Q. In addition, any forward-looking statements represent the Company’s estimates only as of today and should not be relied upon as representing the Company’s estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, it may choose not to do so, even if the Company’s estimates change.

# # #

Contact:
Emma Williamson
AxiCom (for DoubleClick)
020 8392 4077
emma.williamson@axicom.com

Published on: 12:00AM on 29th October 2004