ValueClick Inc. posted flat Q3 profits, while revenue rose 14% including sales from recently acquired Shopping.net and MeziMedia. The online marketing company had Q3 net income of $16.8 million ($0.17/share), same as 2006, on revenue of $156.9 million. Income was slightly ahead of analyst forecasts: analysts polled by Reuters expected EPS of $0.16 on revenue of $156.2M. For full-year 2007, ValueClick projected EPS of $0.70 to $0.71, down from its July forecast of $0.74 to $0.76. Analysts were expecting $0.71. It sees revenue of $635-640 million for the year; analysts were expecting $639.9 million. "While we continue to face challenges in lead generation, I’m encouraged by the growth in our other core businesses, including display advertising, affiliate marketing, technology, and comparison shopping," said CEO Tom Vadnais. "Our unique combination of diverse online marketing services, technologies and expertise in driving publisher and advertiser monetization places us in a strong position to benefit from the continued fragmentation of online consumers." ValueClick is currently under FTC probe for questionable marketing practices. It said it is in "active negotiations to settle the probe. "The softness in our lead-generation business is primarily from the segments that are the subject of the FTC investigation," Vadnais said on the company's earnings conference call (full transcript).
Commentary: ValueClick: Richly Valued, But Well Positioned • ValueClick Projected Buyout Value • Online Ad Revenues: Display vs. Search Going Forward
Stocks to watch: VCLK. Competitors: GOOG, YHOO, MSFT, TWX, MIVA, APTM
Earnings call transcript: ValueClick Q3 2007
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