More NewsValueClick Blames Q3 Revenues and Deflating Expectations on Lead Gen Slump

ValueClick Blames Q3 Revenues and Deflating Expectations on Lead Gen Slump

The company's 2007 outlook has been lowered in recent months by over $20 million.

Alluding to a continued drop in lead generation revenues, ValueClick chalked up another disappointing quarter to short-term challenges. The company reported preliminary third quarter earnings yesterday.

The ad network and services firm said revenues hit between $156 and $157 million, on the low end of its original forecasted range of $155 to $165 million.

Its fiscal year 2007 revenue outlook has also been deflated from a previous range of $645 to $660 million to around $635 to $640 million. That outlook had already been tempered when the company reported its Q2 earnings. Before then, ValueClick told investors, 2007 revenues would stretch from $655 to $665 million.

The company noted in a statement its lead gen business “has stabilized.” Weakness in that segment was counteracted in part by better-than-anticipated results from its Comparison Shopping business. Though it didn’t provide guidance on its Q3 lead generation revenues, ValueClick stated revenues collected in the current quarter should reach between $48 and $49 million.

In addition to a general drop in financial services ad dollars following the subprime mortgage bust, ValueClick and the lead generation sector as a whole has been battling the effects of an ongoing investigation by the Federal Trade Commission.

After riding high on recent record quarterly results, including last year’s above-guidance Q3 revenues of nearly $140 million, ValueClick has felt financial blues the last two quarters.

The firm plans to announce finalized earnings for the quarter ending September 30, 2007 on November 1.

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