Affiliate, search, and e-mail marketing drive growth.
Ad technology company DoubleClick posted better-than-expected revenue and a profit for the fourth quarter, as the company continues analyzing "strategic options." The company credits increased use of DART for Advertisers (DFA), improvements in email, and stronger results from Performics.
The company brought in $83.5 million in revenues in the Q4, resulting in net income of $10.6 million, or $0.08 a share. For the full year, revenues were $301.6 million, while net income came in at $37.5 million, or $0.26 a share.
CEO Kevin Ryan said the Performics division performed especially well, increasing revenue by 60 percent year over year. But he expects business to slip considerably in the first quarter due to seasonal factors. Performics encompasses both search engine and affiliate marketing, which traditionally performs strongly in the fourth-quarter holiday season. Performics recorded revenue of $9.1 million in the fourth quarter, which was stronger than DoubleClick had expected.
"We saw strong growth in overall search and e-commerce spending plus great execution from the team in Chicago," said Ryan.
The company has high hopes for both DART Search, a beta product currently being tested by a number of clients, and DART Motif, the firm's rich media offering.
"Motif is really growing quickly now," said Ryan. "We're going to have a good 2005."
The company's Ad Management division, which includes DFA and DART for Publishers (DFP), had mixed results. Prices declined for both products, but volume increases in the DFA business outweighed the negative pricing factor. Overall Ad Management revenues were $33.2 million in the quarter, versus $34.1 million in the same period in 2003.
The Marketing Automation division, which includes email and SmartPath, brought in $14.5 million in Q4, as compared with $12.8 million in the year-ago period. The company attributed growth to the acquisition of SmartPath and organic growth in email.
Another DoubleClick unit, Data, which serves direct marketers, brought in $26.7 million in the fourth quarter, compared to $26 million in the year-ago period.
DoubleClick dismissed investor concerns that the ongoing search for a buyer either for the company, or for certain divisions, was having a negative effect on employees. The company has issued retention bonuses to key employees and Ryan said the firm hadn't seen greater than normal turnover.
Because of the uncertainty, DoubleClick wouldn't say how it expected to do for the full-year of 2005. For the first quarter, it said it predicted revenues of between $70 and $75 million. Results would come in somewhere between a loss of $0.01 per share and earnings of $0.03 per share.
Revolutionize your digital marketing campaigns at ClickZ Live San Francisco (August 10-12)!
Educating marketers for over 15 years, our action-packed, educationally-focused agenda offers 9 tracks to cover every aspect of digital marketing. Join over 500 digital marketers and expert speakers from leading brands. Register today!
Pamela Parker is a former managing editor of ClickZ News, Features, and Experts. She's been covering interactive advertising and marketing since the boom days of 1999, chronicling the dot-com crash and the subsequent rise of the medium. Before working at ClickZ, Parker was associate editor at @NY, a pioneering Web site and e-mail newsletter covering New York new media start-ups. Parker received a master's degree in journalism, with a concentration in new media, from Columbia University's Graduate School of Journalism.
US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.
E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.