guidance from call...
"...I'd now like to discuss our financial outlook for 2007. 2007 is off to a solid start, as we are making significant progress towards the operational and strategic goals that will drive growth for this year and beyond. As a result, today we are releasing our first guidance for 2007. For the year, we are currently anticipating revenue in the range of $144 million to $150 million.
For color on our quarterly revenue expectations, we currently anticipate that our annual revenue growth rate will accelerate from 8% to 10% in the first quarter of 2007 over the first quarter of 2006, to 20% to 25% for the fourth quarter of 2007 over the fourth quarter of 2006.
Our revenue guidance is based on one, increased third-party distribution relationships; two, the impact of additional advertisers in our system; and three, monetization increases from both our direct advertisers and our monetization partners. The latter of which we expect to impact the back half of the year and four, increased investments in personnel, product development initiatives, marketing, and other traffic initiatives.
For adjusted operating income before amortization, we are currently anticipating a range of $35 million to $39 million. For adjusted EBITDA, we expect to add back approximately $6 million in additional depreciation and amortization to this range of $35 million to $39 million of adjusted operating income before amortization.
So a color on our quarterly expectations, given our investment initiatives, we expect the first quarter of 2007 to have lower adjusted operating income before amortization than the fourth quarter of 2006. Based on certain increased public company costs, increased personnel costs, increased product development costs, costs associated with office consolidation, and increased costs associated with selected website marketing initiatives and advertiser acquisition programs.
We believe these increased expenses will disproportionately impact the first quarter of 2007 and we expect the rate of expensed increases will moderate during the balance of the year. Given our current expectation for accelerating revenue growth rates throughout 2007 and our expected moderation in the expense rate increases, we anticipate better adjusted operating income before amortization will be increasing in the back half of 2007.
Our adjusted operating income before amortization guidance is based on: One, increased service cost associated with new distribution partners. Two, increased public company cost which particularly impact the first quarter. Three, investments in new sales and technical personnel based on our expectation to increase third party distribution, increase the number of advertisers on our system and develop and launch new products including Open List related items. And four, increased marketing costs for selected websites and advertiser acquisition programs. ..." |
