WESTLAKE VILLAGE, Calif.–(BUSINESS WIRE)– ValueClick, Inc. (Nasdaq:VCLK) today reported financial results for the fourth quarter ended December 31, 2011. Revenue, adjusted-EBITDA1 and non-GAAP diluted net income per common share were all above the high-end of their respective guidance ranges.
“We completed a successful 2011 with strong fourth quarter results, including Media segment results that were driven by 20 percent organic growth in our display business, double digit growth in the Affiliate Marketing and Technology segments, and very strong performance by our recent acquisitions,” said Jim Zarley, chief executive officer of ValueClick. “We will continue to invest in people and in our data, optimization and traffic platforms to expand our presence in the digital marketing industry, and we remain confident in our ability to generate more than $700 million in revenue in 2012.”
Highlights from the fourth quarter of 2011 results include:
- Revenue of $182.6 million, up 42 percent from the fourth quarter of 2010 (Q4 2010);
- Adjusted-EBITDA of $62.7 million, up 50 percent from Q4 2010;
- Adjusted-EBITDA margin of 34.3 percent versus 32.5 percent in Q4 2010;
- Income from operations of $45.6 million, up 39% from Q4 2010;
- Non-GAAP net income2 of $0.47 per diluted share versus $0.31 in Q4 2010; and
- GAAP net income of $0.35 per diluted share versus $0.26 in Q4 2010.
The consolidated balance sheet as of December 31, 2011 included approximately $117 million in cash and cash equivalents, and $167.5 million in total debt associated with the August 31 acquisition of Dotomi and subsequent share repurchases.
Share Repurchase Program Update
During the quarter, the Company repurchased 2.8 million shares of its common stock for a total cost of $44.2 million. During fiscal year 2011, ValueClick repurchased 9.7 million shares of its common stock for a total cost of $145.0 million. Since the Dotomi acquisition announcement on August 1, ValueClick repurchased 7.1 million shares, which largely offsets the shares issued as part of the acquisition.
Today, ValueClick announced that its board of directors has increased the share repurchase program authorization by $59 million, bringing the program’s current total authorization to $100 million.
Cost Reclassifications
Beginning with the fourth quarter 2011 results, the Company will make two accounting reclassifications that have no impact on the Company’s historical consolidated revenue, operating income, cash flows, net income, net income per diluted common share or adjusted-EBITDA, or on historical revenue or operating income by segment.
First, ValueClick is electing to reclassify certain costs associated with payments to search engines for driving consumer traffic to the Company’s owned and operated websites. Historically, these traffic acquisition costs have been classified in operating expenses in the Sales and marketing expense line item. The Company is now classifying these costs in Cost of revenue, which the Company believes will provide increased transparency into the drivers of the Owned & Operated Websites segment.
Second, ValueClick is correcting the accounting classification of the amortization of developed technologies and websites acquired in business combinations by including it in Cost of revenue. Amortization related to developed technologies and websites acquired in business combinations was considered immaterial prior to the Dotomi acquisition and was previously recorded in operating expenses in the Amortization of intangible assets acquired in business combinations line item.
All prior periods presented in the Consolidated Statement of Operations and Segment Operating Results included in this press release are presented using the new classifications. A table with historical trend information is available at http://ir.valueclick.com.
Business Outlook
Today, ValueClick is announcing guidance for the first quarter of 2012:
|
Guidance |
| Revenue |
$155-$160 million |
| Adjusted-EBITDA |
$46-$48 million |
| Non-GAAP diluted net income per common share |
$0.34-$0.35 |
| Impact of stock-based compensation and amortization of intangibles, net of tax |
|
$(0.12) |
| GAAP diluted net income per common share |
$0.22-$0.23 |
|
|
The consolidated revenue guidance range is based on the following segment-level assumptions for revenue growth rates, expressed as a percentage increase from first quarter 2011 reported revenue levels:
|
■ |
Affiliate Marketing: |
|
|
up low double digits |
|
■ |
Media: |
|
|
up over 100 percent on a reported basis, up mid teens excluding the impact of acquisitions |
|
■ |
Owned & Operated: |
|
|
down high single digits to low double digits |
|
■ |
Technology: |
|
|
up high single digits |
|
|
|
|
|
|
First quarter 2012 guidance assumes stock-based compensation of $6.2 million, amortization of intangible assets of $8.8 million (including $2.5 million recorded in Cost of revenue), net interest and other income of zero, a 38 percent effective tax rate, and 82 million diluted shares outstanding.
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