California-based digital marketing company ValueClick has beaten forecasters by revealing better than expected fourth-quarter profits and revenues.
For the three-month period ended December 31 2012, the business, which provides online advertising campaigns and programmes, reported a 14% growth in revenue.
As well as the increase in revenue to $199.6 million, compared to Q4 2011, key growth rates were also clear in ValueClick’s affiliate marketing and media segments.
Adjusted EBITDA was $77.1 million, up 26% from Q4 2011.
Strong Organic Growth
Chief executive officer of ValueClick, John Giuliani, said: “We are seeing the early results of our initiatives to elevate our conversations with advertisers to become a more strategic and persistent marketing partner, while also executing on our goals of strong organic growth and profitability.”
The company, which also runs affiliate marketing network Commission Junction, also reported non-GAAP diluted net income of $0.56 earnings per share (EPS) for the quarter, beating the Thomson Reuters consensus estimate of $0.52.
ValueClick, which focuses on key areas such as media, affiliate marketing, online publishing, mobile and technology, has a range of customers from direct marketers and brand advertisers to advertising agencies and traffic distribution partners.
Affiliate Segment Blossoms
Growth was particularly visible in ValueClick’s affiliate marketing segment and separate media segment, both in Q4 and for the full year ended 2012.
At the full year end for 2012, revenue for affiliate marketing increased by more than $10 million to $149.5 million, compared to $139.4 million in 2011.
The company’s owned and operated websites generated revenue of $33 million in Q4, which was down 2% year-on-year.
Speaking to A4u this time last year, following strong financial results in 2011, bosses at ValueClick said they were confident about 2012 – and once again thoughts remain positive for 2013.
“We expect 2013 to be a watershed year for ValueClick and we look forward to articulating our vision and strategic initiatives in greater detail at our March 14 analyst and investor day,” Giuliani added.
In announcing its guidance for Q1 2013, ValueClick said it anticipates revenue of between $165-$168 million and $0.39-0.41 EPS.