Doubleclick reported in line profits, a bit better on revenue.
I expected better. Profit taking happening today.
Phil
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- Gross Profit Increases 24% from Fourth Quarter 1998 -
NEW YORK, April 27 /PRNewswire/ -- DoubleClick, Inc. (Nasdaq: DCLK), a
leading provider of comprehensive Internet advertising solutions, today
announced financial results for the first quarter ended March 31, 1999.
The Company reported system revenues of $31.1 million for the first
quarter of 1999, a 139 percent increase over system revenues of
$13.0 million for the first quarter of 1998. The $31.1 million in system
revenues resulted in actual recognized revenue of $22.1 million for 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 revenues.
Gross profit for the first quarter of 1999 was $12.0 million, a
186% increase over gross profit of $4.2 million for the first quarter of 1998,
and a 24% increase over gross profit of $9.7 million in the fourth quarter of
1998.
The net loss for the first quarter of 1999, excluding the effect of
non-recurring facility relocation charges, was $5.3 million, or $0.13 per
share, compared to a net loss of $4.4 million, or $0.21 per share, for the
first quarter of 1998. Including the effect of the relocation charges
relating to the Company's corporate headquarters move, net loss was
$6.9 million, or $0.18 per share.
Kevin O'Connor, Chairman and CEO of DoubleClick, said, "Advertising is
increasingly being recognized as the key economy of the Internet. As a
leading provider of Internet advertising solutions, DoubleClick is well
positioned to take advantage of this trend."
DoubleClick Inc.
Condensed Consolidated Statement of Operations
Excluding Facility Relocation Charges (A)
(Unaudited, in thousands except for per share data)
Three Months Ended
3-31-98 3-31-99
System revenues (B) $13,004 $31,140
Revenues $13,004 $22,087
Cost of revenues 8,845 10,098
Gross Profit 4,159 11,989
Gross Margin 32.0% 54.3%
Operating Expenses:
Sales & marketing 5,624 11,057
General & administrative 2,349 4,265
Product development 1,025 3,611
Total operating expenses 8,998 18,933
Loss from operations (4,839) (6,944)
Interest income, net 412 1,663
Net loss $(4,427) $(5,281)
Basic and diluted weighted
average shares
outstanding (C)
21,166 39,301
Basic and diluted net loss
per share, excluding
non-recurring facility
relocation charge (C)
$(0.21) (0.13)
(A) These financial statements exclude non-recurring facility relocation
charges of $1,644. As such, they do not purport to be financial statements
prepared in accordance with Generally Accepted Accounting Principles.
(B) System revenues include revenues 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.
(C) Presentation of basic and diluted net loss per share for the
three months ended March 31, 1998 has been revised to give effect to the
conversion of the Company's then outstanding convertible preferred stock from
the date of conversion, which occurred simultaneous with the closing of the
Company's initial public offering on February 25, 1998. See footnote 1 to the
10-K/A as filed on April 27, 1999.
DART Technology
Traffic continued its positive trend, delivering an average of over
264 million ad impressions per day during the month of March, 1999 compared to
172 million ad impressions per day during the month of December 1998, an
increase of 53 percent. DoubleClick DART delivered 8.2 billion ads in March
1999. In addition, the number of Web publishers serviced by the DART
technology increased to 675, with 7,400 unique sites in the first quarter of
1999, an increase from 570 Web publishers with 6,400 unique sites in the
fourth quarter of 1998.
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 900 million ads in the
first quarter, and signed up 30 customers, including Dell Computers.
International Operations
Revenue from the DoubleClick International Networks grew 20% in the first
quarter to $4.9 million compared to the fourth quarter of 1998. Barry Salzman,
President of DoubleClick International said, "We are very pleased with the
growth of this business. We now have a presence in 17 countries."
Statement of Operations
DoubleClick Inc.
Condensed Consolidated Statement of Operations
(Unaudited, in thousands except for per share data)
Three Months Ended
3-31-98 3-31-99
System revenues (A) $13,004 $31,140
Revenues$13,004 $22,087
Cost of revenues 8,845 10,098
Gross Profit 4,159 11,989
Operating Expenses:
Sales & marketing 5,624 11,057
General & administrative 2,349 4,265
Product development 1,025 3,611
Facility relocation & other -- 1,644
Total operating expenses 8,998 20,577
Loss from operations (4,839) (8,588)
Interest income, net 412 1,663
Net loss $(4,427) $(6,925)
Basic and diluted weighted
average shares
outstanding (B) 21,166 39,301
Basic and diluted net loss
per share (B) $(0.21) (0.18)
(A) System revenues include revenues earned by the Company with respect to
network sales relating to publishers which are part of the DoubleClick
Network, fees earned from independent publishers and advertisers which use the
DART technology to deliver ad impressions, and amounts invoiced on behalf of
Compaq Computer Corp, pursuant to the Advertising Services Agreement.
(B) Presentation of basic and diluted net loss per share for the three
months ended March 31, 1998 has been revised to give effect to the conversion
of the Company's then outstanding convertible preferred stock from the date of
conversion, which occurred simultaneous with the closing of the Company's
initial public offering on February 25, 1998. See footnote 1 to the 10-K/A as
filed on April 27, 1999.
Balance Sheet
DoubleClick Inc.
Condensed Consolidated Balance Sheet
($ in thousands)
12-31-98 3-31-99
(unaudited)
Current assets:
Cash & short-term investments$136,814 $371,146
Accounts receivable, net 31,342 23,085
Prepaid expenses & other 869 2,199
Total current assets $169,025 $396,430
Property & equipment, net 13,741 14,296
Investments, at cost 633 633
Other assets 222 5,292
Total assets $183,621 $416,651
Current liabilities:
Accounts payable $20,583 $6,252
Accrued expenses 12,220 13,937
Deferred revenues 1,683 3,729
Other current liabilities 421 421
Total current liabilities $34,907 $24,339
Convertible subordinated notes -- 250,000
Other liabilities 375 321
Total stockholders' equity 148,338 141,991
Total liabilities &
stockholders' equity $183,621 $416,651
About DoubleClick
DoubleClick, Inc. (http://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. Theresults 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.
In March, DoubleClick DART delivered over 8 billion ads across 6,400 sites
worldwide. To find out why sites such as AltaVista, The Wall Street Journal,
CBS Sportsline and eBay rely upon DART to manage their ad inventory, please
visit doubleclick.net
SOURCE DoubleClick, Inc. |
