ValueClick beats by $0.02, raises FY05 guidance (VCLK 2Q05 earnings results)

ValueClick (ticker: VCLK) reported Q2 2005 earnings results that beat both consensus revenue and EPS estimates. Key stats from the
quarter:

Q2 Results
(all percentage changes and comparisons are year on year, unless stated otherwise)

• Revenue rose 57.7% to $54.6 million vs consensus estimate of $53.99 million.
• Gross margin was 74.8% vs 67.0%.
• Operating expenses rose 73.7% to $30.1 million.
• Sales and marketing expenses rose 109.0% to $15.0 million.
• G&A expenses rose 46.4% to $8.7 million.
• Technology expenses rose 12.2% to $4.7 million.
• EBITDA rose 65.1% to $13.7 million.
• Operating income rose 82.7% to $10.7 million.
• Operating margin was 19.6% vs 16.9%.
• Net income rose 46.7% to $8.1 million.
• Net margin was 14.8% vs 15.9%.
• Diluted EPS of $0.10 vs $0.07, and consensus of $0.08.

Balance Sheet (as of June 30, 2005)

• Cash and equivalents of $34.3 million.
• Marketable securities of $92.3 million.

Q3 Guidance

• Revenue of $78.0 - $79.0 million vs consensus of $76.39 million.
• EBITDA of $18.0 - $19.0 million.
• Fully diluted net income per common share of approximately $0.09 in-line with consensus.

FY 2005 Guidance (Revised)

• Revenue of $269 - 279 million vs previous guidance of $265 - 275 million, and vs consensus estimate of $271.62 million.
• EBITDA of $70 - 74 million vs previous guidance of $68 – 72 million.
• Fully diluted net income per common share of $0.41 - 0.43 vs previous guidance of $0.39 - $0.41, and consensus estimate of $0.40.
• Note: FY 2005 guidance includes seven months of operations from E-Babylon and six months of operations from Web Clients.

VCLK chart.

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