California-based online advertising company and operator of one of the largest networks across the UK, Europe and US, ValueClick, has announced a robust set of financial figures for the end of 2011. Revenue and profits both saw huge gains, leading CEO James Zarley to say that he was, ”confident in our ability to generate more than $700 million in revenue in 2012”.
The specifics surrounding these gains show that ValueClick is in a solid position. Its gross profit stands at $108.5m ($71.8m in 2010), while revenues increased from $71.8m in 2010 to $182.6m.
It’s easy to see why Zarley feels his $700m revenue target for 2012 is achievable, especially if the company carried out one or two acquisitions like those it oversaw in 2011 (which included Greystripe and Dotomi, for a combined total of $370m). A4u spoke to the CEO of ValueClick International, Carl White, who disclosed that these acquisitions have indeed bolstered the company: “This has had a positive impact on our revenues, and both businesses had a strong performance in the last quarter of 2011.”
ValueClick doesn’t want to be solely reliant on growth through acquisition, however: it needs to combine this with other strategies. This statement wasn’t lost on White, who told us that much of ValueClick’s success came down to it balancing the various aspects of its business with how different sectors are evolving. “We saw 20% global organic growth in our display sector, which demonstrates how we are taking advantage of the dynamic changes impacting the sector,” he said.
Share repurchasing has also taken precedence at ValueClick. During fiscal year 2011, ValueClick repurchased 9.7 million shares of its common stock at a total cost of $145m. This scheme will be taken even further in 2012: the board of directors has increased the share repurchase program authorisation by $59m, bringing its current total authorisation to $100m.
Looking ahead, White is confident about ValueClick’s prospects for 2012, telling us: “We’re aiming to improve on this growth in 2012 by continuing to capitalise on our deep experience of multiple digital business sectors.”