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Monday July 19, 4:48 pm Eastern Time
Company Press Release
DoubleClick Reports Second Quarter 1999 Results
System Revenue Increase 155% From Second Quarter 1998
NEW YORK--(BUSINESS WIRE)--July 19, 1999--DoubleClick, Inc. (Nasdaq:DCLK - news), a leading provider of
comprehensive Internet advertising solutions, today announced financial results for the second quarter ended June 30, 1999.
The Company reported system revenue of $44.0 million for the second quarter of 1999, a 155 percent increase over system
revenue of $17.3 million for the second quarter of 1998. The $44.0 million in system revenue resulted in actual recognized revenue
of $31.0 million for the second quarter of 1999, a 40 percent increase over system revenue of $22.1 million in the first quarter of
1999. Under the Advertising Services Agreement entered into with Compaq Computer Corp. in the first quarter of 1999, the
Company now records AltaVista revenue on a commission basis as a percentage of system revenue.
Gross profit for the second quarter of 1999 was $16.1 million, a 188% increase over gross profit of $5.6 million for the second
quarter of 1998, and a 34% increase over gross profit of $12.0 million in the first quarter of 1999.
The net loss for the second quarter of 1999, excluding the effect of facility relocation charges, was $5.1 million, or $0.13 per share,
compared to a net loss of $4.7 million, or $0.14 per share, for the second quarter of 1998. Including the effect of the relocation
charges relating to the Company's corporate headquarters move, net loss was $5.6 million, or $0.14 per share.
Kevin O'Connor, Chairman and CEO of DoubleClick, said, ''This was a transforming quarter for DoubleClick. Not only did we
continue to experience strong demand for DoubleClick's products and services, but we also announced several important initiatives
to further develop our suite of product offerings. The merger of Abacus Direct, announced in June, will allow us to more efficiently
target the right consumer with the right message at the right time. And our recent merger with NetGravity will allow us to offer our
customers a truly complete package of online advertising solutions.''
DoubleClick Inc.
Condensed Consolidated Statement of Operations
Excluding Facility Relocation Charges (A)
(Unaudited, in thousands except for per share data)
Three Months Ended Six Months Ended
6-30-98 6-30-99 6-30-98 6-30-99
System revenue (B) $17,293 $44,011 $30,297 $75,152
======= ======= ======= =======
Revenue $17,293 $30,992 $30,297 $53,079
Cost of revenue 11,724 14,940 20,569 25,038
------- ------- ------- -------
Gross Profit 5,569 16,052 9,728 28,041
Gross Margin 32.2% 51.8% 32.1% 52.8%
Operating Expenses:
Sales & marketing 6,885 14,002 12,508 25,059
General & administrative 2,621 4,485 4,970 8,750
Product development 1,554 4,080 2,579 7,691
------- ------- ------- -------
Total operating expenses 11,060 22,567 20,057 41,500
------- ------- ------- -------
Loss from operations (5,491) (6,515) (10,329) (13,459)
Interest income, net 817 1,526 1,228 3,189
Income Tax - (134) - (134)
------- ------- ------- -------
Net loss $(4,674) $(5,123) $ (9,101)$ (10,404)
======= ======= ======= =======
Basic and diluted weighted
average shares outstanding 32,918 39,600 27,101 39,435
Basic and diluted net loss
per share, excluding
non-recurring facility
relocation charge $ (0.14) $ (0.13) $ (0.34) $ (0.26)
(A) The financial statements exclude facility relocation charges of $488 and $2,132 for the three and six months ended June 30,
1999 respectively. As such, they do not purport to be financial statements prepared in accordance with Generally Accepted
Accounting Principles.
(B) System revenue include revenue earned by the Company with respect to network sales relating to publishers which are part of
the DoubleClick Network, fees earned from independent publishers and advertisers which use the DART technology to deliver ad
impressions, and amounts invoiced on behalf of Compaq Computer Corp, pursuant to the Advertising Services Agreement.
DART Technology
Traffic continued its positive trend, delivering an average of over 363 million ad impressions per day during the month of June, 1999
compared to 264 million ad impressions per day during the month of March 1999, an increase of 38 percent. DoubleClick DART
delivered 10.9 billion ads in June 1999. In addition, the number of Web publishers serviced by the DART technology increased to
893 in the second quarter of 1999 from 675 Web publishers in the first quarter of 1999.
In the fourth quarter of 1998, DoubleClick announced the launch of Closed-Loop Marketing Solutions, a suite of products designed
to give Internet advertisers and agencies real-time, in-depth control of delivery, measurement and analysis of their online marketing
campaigns. We are pleased to announce that the Closed-Loop Marketing Solutions served over 3.6 billion ads in the second
quarter.
International Operations
Revenue from the DoubleClick International Networks grew 58% in the second quarter to $7.7 million compared to the first quarter
of 1999 and now represents 18 percent of the company's system revenue.
Abacus Direct
On June 14, 1999 DoubleClick announced a proposed merger with Abacus Direct Corporation. DoubleClick will issue 1.05 shares
for each Abacus Direct share. Abacus Direct is a worldwide leader in providing information and research to the direct marketing
industry. The Company manages the nation's largest proprietary database of consumer catalog buying behavior used for target
marketing purposes. The merger is expected to close during the third quarter of 1999.
NetGravity
On July 13, 1999 DoubleClick announced a proposed merger with NetGravity, Inc. DoubleClick will issue .28 shares for each
NetGravity share. NetGravity is a leading provider of interactive online advertising and direct marketing software solutions. The
merger is expected to close during the fourth quarter of 1999.
Statement of Operations
DoubleClick Inc.
Condensed Consolidated Statement of Operations
(Unaudited, in thousands except for per share data)
Three Months Ended Six Months Ended
6-30-98 6-30-99 6-30-98 6-30-99
System revenue (A) $17,293 $44,011 $30,297 $75,152
======== ======= ======= =======
Revenue $17,293 $30,992 $30,297 $53,079
Cost of revenue 11,724 14,940 20,569 25,038
-------- ------- ------- -------
Gross Profit 5,569 16,052 9,728 28,041
Operating Expenses:
Sales & marketing 6,885 14,002 12,508 25,059
General & administrative 2,621 4,485 4,970 8,750
Product development 1,554 4,080 2,579 7,691
Facility relocation & other - 488 - 2,132
-------- ------- ------- -------
Total operating expenses 11,060 23,055 20,057 43,632
Loss from operations (5,491) (7,003) (10,329) (15,591)
Interest income, net 817 1,526 1,228 3,189
Income Tax - (134) - (134)
-------- ------- ------- -------
Net loss $(4,674) $(5,611) $(9,101) $(12,536)
======== ======== ======= =======
Basic and diluted weighted
average shares outstanding 32,918 39,600 27,101 39,435
Basic and diluted net
loss per share $ (0.14) $ (0.14) $ (0.34) $ (0.32)
(A) System revenue include revenue earned by the Company with respect to network sales relating to publishers which are part of
the DoubleClick Network, fees earned from independent publishers and advertisers which use the DART technology to deliver ad
impressions, and amounts invoiced on behalf of Compaq Computer Corp, pursuant to the Advertising Services Agreement.
About DoubleClick
DoubleClick, Inc. (www.doubleclick.net) is a leading provider of comprehensive global Internet advertising solutions for marketers
and Web publishers. Combining technology and media expertise, DoubleClick centralizes planning, execution, control, tracking and
reporting for online media campaigns. DoubleClick has U.S. headquarters in New York, NY, international headquarters in Dublin
and maintains offices in Paris, London, Oslo, Helsinki, Barcelona, Copenhagen, Tokyo, Madrid, Milan, Munich, Dusseldorf,
Sydney, Hamburg, Stockholm, Toronto, Montreal, Atlanta, Boston, Chicago, Detroit, Dallas, Los Angeles and San Francisco.
This release contains forward-looking statements that involve risks and uncertainties. The results or events predicted in these
statements may differ materially from actual future events or results. Factors that could cause actual events or results to differ from
anticipated events or results include the Company's limited operating history, history of losses and anticipation of continued losses,
the Company's dependence on its relationship with AltaVista, the Company's Web publisher concentration and dependence on a
limited number of advertisers, the Company's reliance on the DoubleClick Network, and other risks that are contained in documents
which the Company files from time to time with the Securities and Exchange Commission. For a discussion of such risks, see the
Company's documents filed from time to time with the Securities and Exchange Commission.
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