Pro Forma Revenue Increases 65% Year-Over-Year, 23% Sequentially
NEW YORK – interCLICK, Inc. (the “Company”) (OTCBB: ICLK), the fastest growing advertising network in the US according to comScore*, announced today results for the third quarter ended September 30, 2008. Third quarter revenue of $5.76 million increased 65% compared to pro forma revenue for the third quarter ended September 30, 2007 of $3.49 million. Revenue exceeded the Company’s previously announced guidance. interCLICK’s 2008 third quarter revenue increased 23.2% sequentially compared to 2008 second quarter revenue of $4.67 million.
Gross profit for the 2008 third quarter was $1.79 million, a 31.1% gross margin representing a sequential increase of 415 basis points from the prior quarter’s 27% gross margin. Gross margin gains are attributable to high client retention, successful delivery of higher quality brand campaigns and improved supply chain management.
The Company’s 2008 third quarter operating loss from continuing operations was ($1.42) million, including $0.61 million in non-cash items such as stock-based compensation, intangible amortization and depreciation. This compares with a 2008 second quarter operating loss from continuing operations of ($2.30) million, including $0.66 million in non-cash items.
Meanwhile, as noted previously, the Company’s balance sheet has improved since the end of the 2008 third quarter as the Company has entered into a one-year $3.0 million revolving credit facility that is expected to support working capital requirements in the Company’s seasonally strong fourth quarter of its fiscal year as well as provide a foundation for continued growth in 2009.
“Despite a challenging period for companies relying on advertising spending, including many of our peers who provide Internet marketing services, interCLICK’s revenue growth has significantly outperformed its competitors as the Company has gained market share,” said Michael Mathews, interCLICK’s Chief Executive Officer. “At a time when companies are relentlessly focused on return on investment on their advertising budgets, interCLICK has been able to consistently deliver to our advertisers’ expectations.”
Business Outlook:
interCLICK reiterated its 2008 fourth quarter and full-year outlook. The Company expects fourth quarter revenue to exceed $6.5 million and 2008 full-year revenue to exceed $20.5 million.
For 2009, the Company expects revenue to grow by at least 60% from expected 2008 levels.
1) According to comScore Media Metrix, June 2008
About interCLICK
interCLICK, Inc., operates the interCLICK Network, an online ad network that combines advanced behavioral targeting with site by site reporting, allowing advertisers to identify and track their desired audience on an unprecedented level. interCLICK offers advanced proprietary demographic, behavioral, contextual, geographic and retargeting technologies across a network of name brand publishers to ensure the right message is delivered to a precise audience in a brand friendly environment. For more information about the interCLICK Network, visit http://www.interclick.com.
