ValueClick Anticipates FTC Fine for Lead Gen Transgressions

  |  November 2, 2007   |  Comments

Presenting Q3 results, execs said the investigation had taken a toll on the company's lead generation business.

Though it's still in talks with the Federal Trade Commission (FTC) regarding alleged lead generation violations, ValueClick now says it anticipates a fine and possible injunction will be laid upon the company.

In presenting the company's Q3 results, Chief Executive Officer Tom Vadnais said ValueClick reported results in line with revised numbers released October 17, but added the investigation had taken its toll on the company's lead generation business.

"Our softness in the lead generation part of our media-based business is related to the ongoing FTC investigation," he said. "Other than our lead generation business, our other businesses have continued to grow."

In May, Valueclick confirmed it was under investigation for CAN-SPAM Act violations in a Form 8-K filing with the Security Exchange Commission. Vadnais said his company is still waiting to hear from the government agency regarding any potential action.

"Any stipulation with the FTC will provide clearer guidelines for the lead generation industry," he said. "There's a lot of ambiguity in what the guidelines are, and the positive outcome of [the FTC investigation]... for the industry will be more clarity."

Sam Paisley, chief administrative officer, said the lead generation business has stabilized. He said the softness was offset in part by better-than-anticipated results from Valueclick's Comparison Shopping business.

Revenue for the third quarter of 2007 was $157 million, an increase of $19 million, or 14 percent, over the same period last year. Net income was 16.8 million, matching the year-ago period. Results also included revenues from Shopping.net, which it acquired in December 2006, and MeziMedia, acquired in July 2007.

The company updated its guidelines for the fourth quarter 2007 to anticipate revenues of $172 to 177 million, with full year 2007 revenues of $635 to $640 million, according to Paisley.

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

Matthew G. Nelson

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

    Information currently unavailable

Jobs

    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...
    • SEO Senior Analyst
      SEO Senior Analyst (University of Phoenix (Apollo Education Group)) - San FranciscoSEO Senior Analyst   Position Summary...
    • SEM & Biddable Media Manager
      SEM & Biddable Media Manager (Kepler Group LLC) - New YorkAs an Optimization & Innovation Manager at Kepler Group, you will be on the bleeding...