AQuantive Q2 Revenues up 48 Percent over Q2 ’06

Digital marketing outfit aQuantive reported growth in revenue from its digital marketing services, technology and performance media businesses in Q2 2007 over the same quarter of 2006. Overall revenue came in at $156 million in Q2, up nearly 50 percent from the $105.6 million collected in Q2 ’06. The Microsoft company-to-be attributed growth to market strength, expected market demand, as well as successful recruitment efforts. Microsoft plunked down a whopping $6 billion for the large Web marketing services firm in May.

aQuantive President and CEO Brian McAndrews called the firm’s growth “tremendous” in a statement. “In the second quarter, organic growth was an impressive 33 percent,” he continued. The company did not elaborate on this in its earnings report statement, nor did it hold a conference call to expound on the past quarter’s earnings.

aQuantive’s digital marketing technologies division brought in $40.2 million in revenues in the second quarter of this year, compared with Q2 2006’s $29.7 million. Reporting for the segment includes dollars derived from its ad management technology properties, most importantly Atlas and AdManager, businesses of particular interest to Microsoft in its decision to purchase the company. Atlas today unveiled its AdMarket technology enabling performance-based ad sales management for large publishers.

Microsoft and other large online ad industry players like Google, Yahoo and AOL are in a race to be the default digital ad management provider as the market continues to surge. Online ad revenues hit $16.9 billion last year, up 35 percent from the year before, according to the Interactive Advertising Bureau’s annual Internet Advertising Revenue Report, conducted by PricewaterhouseCoopers.

Revenue from aQuantive’s digital marketing services segment, which includes its global ad agency Avenue A / Razorfish, came in at $94.2 million in the three months ending June 30, 2007, up from $64.1 million in Q2 ’06. Avenue A / Razorfish recently promoted longtime exec Clark Kokich to the newly created position of CEO. Some remain concerned that Microsoft’s media interests present a conflict of interest for Avenue A / Razorfish’s goal to be an impartial representative of digital marketers and media buyers.

aQuantive’s digital performance media segment drew $21.6 million in revenue, up from $11.9 million in the Q2 2006. This third business division includes the performance-based ad network DrivePM and restaurant and food franchise lead-generation company Franchise Gator.

The Microsoft acquisition has yet to be completed, though it appears the Federal Trade Commission has completed its requisite inspection of the proposed deal.

Also in the second quarter of ’07, aQuantive reported Net income of $9.6 million, or $0.11 per diluted share, down 22 percent from Q2 of last year.

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