Conversant, Inc.
Jul 31, 2008
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ValueClick Announces Second Quarter 2008 Results

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--July 31, 2008--ValueClick, Inc. (Nasdaq: VCLK) today reported financial results for the second quarter ended June 30, 2008.

"While increased macroeconomic uncertainty makes revenue growth more challenging for the second half of the year, we are taking meaningful steps to preserve margins and drive long-term growth and shareholder value," said Tom Vadnais, chief executive officer of ValueClick. "We are accelerating initiatives to increase synergies among our businesses, and we have been active in our stock repurchase program since our July 17 pre-announcement. We believe ValueClick's long-term prospects are bright, and we are committing resources to realize the opportunities in front of us while driving bottom line results."

Second Quarter 2008 Results

Revenue for the second quarter of 2008 was $163.8 million, an increase of $15.2 million, or 10 percent, from $148.7 million for the second quarter of 2007. Second quarter 2008 results include three months of operations from MeziMedia, which was acquired in July 2007.

Income before income taxes for the second quarter of 2008 was $29.3 million compared to $29.4 million for the second quarter of 2007. Amortization of intangible assets increased to $7.8 million for the second quarter of 2008 from $5.5 million for the second quarter of 2007, primarily due to the impact of the MeziMedia acquisition. Adjusted-EBITDA for the second quarter of 2008 was $43.5 million, an increase of 12 percent compared to $38.8 million for the second quarter of 2007.

Net income for the second quarter of 2008 was $16.5 million, or $0.17 per diluted common share, compared to $17.6 million, or $0.17 per diluted common share, for the second quarter of 2007.

The consolidated balance sheet as of June 30, 2008 includes $191 million in cash, cash equivalents and marketable securities, $706 million in total stockholders' equity and no long-term debt.

Stock Repurchase Program Update

Today, ValueClick also provided an update on its Stock Repurchase Program. Year-to-date through July 30, the Company has repurchased approximately 10.6 million shares for $134.2 million, including 7.4 million shares repurchased for $79.5 million since the Company's July 17 announcement of preliminary results for the second quarter of 2008 and revised fiscal year 2008 guidance. As of July 30, up to $21.8 million of ValueClick's capital may be used to repurchase shares of the Company's common stock under the Stock Repurchase Program.

Business Outlook

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this release. Actual stock-based compensation expense may differ from these estimates based on the timing and amount of stock awards granted, the assumptions used in stock award valuation and other factors. Actual income tax expense may differ from these estimates based on tax planning, changes in tax accounting rules and laws, and other factors.

ValueClick is reiterating the fiscal year 2008 guidance ranges, issued previously on July 17, 2008. The fiscal year 2008 guidance is as follows:

Fiscal Year 2008                                         Guidance
----------------------------------------------------------------------
Revenue                                              $655-$675 million
----------------------------------------------------------------------
Adjusted-EBITDA                                      $172-$176 million
----------------------------------------------------------------------
  Adjusted-EBITDA Margin at Mid-Point of Guidance
   Ranges                                                  26.2%
----------------------------------------------------------------------
Diluted net income per common share                     $0.69-$0.71
----------------------------------------------------------------------

Fiscal year 2008 diluted net income per common share guidance includes the impact of approximately $0.15 per diluted common share for stock-based compensation expense and assumes a 42.5 percent effective tax rate.

The mid-point of updated fiscal year 2008 revenue guidance reflects the following year-over-year revenue growth rates per segment:

Fiscal Year 2008 Revenue Guidance by          Year-Over-Year Growth
 Segment
----------------------------------------------------------------------
Affiliate Marketing(2) (excludes Search123)            +8%
----------------------------------------------------------------------
Comparison Shopping and Search (includes          +19% pro-forma
 Search123)
----------------------------------------------------------------------
Technology                                             +18%
----------------------------------------------------------------------
Media, Total                                           -18%
    Display advertising                     Low single digit increase
    Lead generation                             High 20% decrease
----------------------------------------------------------------------

Additionally, ValueClick is announcing guidance for the third quarter of 2008:

Third Quarter 2008                                       Guidance
----------------------------------------------------------------------
Revenue                                             $150-$156 million
----------------------------------------------------------------------
Adjusted-EBITDA                                      $37-$40 million
----------------------------------------------------------------------
Diluted net income per common share                    $0.14-$0.15
----------------------------------------------------------------------

Third quarter 2008 guidance for diluted net income per common share includes a reduction of $0.04 per diluted common share for stock-based compensation expense and assumes a 42.5 percent net effective income tax rate.

Conference Call Today at 4:30 p.m. ET

Tom Vadnais, chief executive officer, and John Pitstick, chief financial officer, will present an overview of the results and other factors affecting ValueClick's financial performance for the second quarter during a conference call and webcast on July 31, 2008 at 4:30PM ET. Investors and analysts may obtain the dial-in information through StreetEvents (www.streetevents.com).

The live Webcast of the conference call will be available on the Investor Relations section of www.valueclick.com. A replay of the conference call will be available through August 7 at (888) 203-1112 and (719) 457-0820 (pass code: 1770349). An archive of the Webcast will also be available through August 7.

About ValueClick

ValueClick, Inc. (Nasdaq: VCLK) is one of the world's largest integrated online marketing services companies, offering comprehensive and scalable solutions to deliver cost-effective customer acquisition for advertisers and transparent revenue streams for publishers. ValueClick's performance-based solutions allow its customers to reach their potential through multiple online marketing channels, including affiliate and search marketing, display advertising, lead generation, ad serving and related technologies, and comparison shopping. ValueClick brands include Commission Junction, ValueClick Media, Mediaplex, Smarter.com, CouponMountain.com, and PriceRunner. For more information, please visit www.valueclick.com.

This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, the risk that market demand for on-line advertising in general, and performance based on-line advertising in particular, will not grow as rapidly as predicted, and the risk that legislation and governmental regulation could negatively impact the Company's performance. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under "Risk Factors" and elsewhere in filings with the Securities and Exchange Commission made from time to time by ValueClick, including, but not limited to: its annual report on Form 10-K filed on February 29, 2008; recent quarterly reports on Form 10-Q; and other current reports on Form 8-K. ValueClick undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

(1) Adjusted-EBITDA is defined as GAAP (Generally Accepted Accounting Principles) net income before interest, income taxes, depreciation, amortization, and stock-based compensation. Please see the attached schedule for a reconciliation of GAAP net income to adjusted-EBITDA, and a discussion of why the Company believes adjusted-EBITDA is a useful financial measure to investors and how Company management uses this financial measure.

(2) The Company announced on a May 6, 2008 conference call that, starting with second quarter 2008 financial results, it would reclassify the Search123 business from the Affiliate Marketing segment to the Comparison Shopping segment, and rename the Comparison Shopping segment "Comparison Shopping and Search." Search123 generated approximately $21 million in revenue in 2007, and updated guidance anticipates 2008 revenue for Search123 of approximately $17 million.

                           VALUECLICK, INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In thousands)
                                                 June 30, December 31,
                                                   2008       2007
                                                 -------- ------------
                                                      (Unaudited)
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                      $101,274 $     82,767
  Marketable securities                            59,478      170,691
  Accounts receivable, net                        111,739      126,605
  Other current assets                             27,902       18,785
                                                 -------- ------------
    Total current assets                          300,393      398,848
  Marketable securities, less current portion      30,350       34,059
  Property and equipment, net                      19,000       19,357
  Goodwill                                        440,764      439,532
  Intangible assets, net                           98,090      112,979
  Other assets                                     11,305        6,247
                                                 -------- ------------
TOTAL ASSETS                                     $899,902 $  1,011,022
                                                 ======== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities                              $111,989 $    219,199
Non-current liabilities                            81,446       81,890
                                                 -------- ------------
    Total liabilities                             193,435      301,089
    Total stockholders' equity                    706,467      709,933
                                                 -------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $899,902 $  1,011,022
                                                 ======== ============
                           VALUECLICK, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (In thousands, except per share data)
                                                    Three-month Period
                                                      Ended June 30,
                                                    ------------------
                                                      2008      2007
                                                    ------------------
                                                        (Unaudited)
                                                         (Note 1)
Revenue                                             $ 163,831 $148,676
Cost of revenue                                        51,702   49,057
                                                    --------- --------
  Gross profit                                        112,129   99,619
Operating expenses:
  Sales and marketing (Note 2)                         46,097   42,194
  General and administrative (Note 2)                  20,222   17,200
  Technology (Note 2)                                  10,164    8,735
  Amortization of intangible assets acquired in
   business combinations                                7,779    5,470
                                                    --------- --------
       Total operating expenses                        84,262   73,599
                                                    --------- --------
Income from operations                                 27,867   26,020
  Interest income and other, net                        1,413    3,375
                                                    --------- --------
Income before income taxes                             29,280   29,395
    Income tax expense                                 12,791   11,767
                                                    --------- --------
Net income                                          $  16,489 $ 17,628
                                                    ========= ========
Basic net income per common share                   $    0.17 $   0.18
                                                    ========= ========
Weighted-average shares used to compute basic net
 income per common share                               95,363  100,038
                                                    ========= ========
Diluted net income per common share                 $    0.17 $   0.17
                                                    ========= ========
Weighted-average shares used to compute diluted net
 income per common share                               96,133  101,623
                                                    ========= ========
Note 1 - The condensed consolidated statements of operations include
 the results of MeziMedia from the acquisition consummation date (July
 30, 2007). Had this transaction been completed as of January 1, 2007,
 on an unaudited pro forma basis, revenue would have been $166.0
 million, and net income would have been $18.3 million, or $0.18 per
 diluted common share, for the three-month period ended June 30, 2007.
 These unaudited pro forma results are for information purposes only,
 are not necessarily indicative of what the actual results would have
 been had this transaction occurred on January 1, 2007, and are not
 necessarily indicative of future results.
Note 2 - Includes stock-based compensation expense  Three-month Period
 as follows:                                          Ended June 30,
                                                    ------------------
                                                      2008      2007
                                                    --------- --------
                                                       (Unaudited)
Sales and marketing                                 $   1,716 $  1,296
General and administrative                              2,947    2,981
Technology                                                665      643
                                                    --------- --------
  Total stock-based compensation expense            $   5,328 $  4,920
                                                    ========= ========
                           VALUECLICK, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (In thousands, except per share data)
                                                     Six-month Period
                                                      Ended June 30,
                                                     -----------------
                                                       2008     2007
                                                     -----------------
                                                        (Unaudited)
                                                         (Note 1)
Revenue                                              $339,865 $305,600
Cost of revenue                                       106,815   96,104
                                                     -------- --------
  Gross profit                                        233,050  209,496
Operating expenses:
  Sales and marketing (Note 2)                         97,798   90,646
  General and administrative (Note 2)                  41,876   34,741
  Technology (Note 2)                                  20,127   17,662
  Amortization of intangible assets acquired in
   business combinations                               15,539   11,241
                                                     -------- --------
       Total operating expenses                       175,340  154,290
                                                     -------- --------
Income from operations                                 57,710   55,206
  Interest income and other, net                        4,464    6,314
                                                     -------- --------
Income before income taxes                             62,174   61,520
    Income tax expense                                 26,518   25,258
                                                     -------- --------
Net income                                           $ 35,656 $ 36,262
                                                     ======== ========
Basic net income per common share                    $   0.37 $   0.36
                                                     ======== ========
Weighted-average shares used to compute basic net
 income per common share                               96,543   99,801
                                                     ======== ========
Diluted net income per common share                  $   0.37 $   0.36
                                                     ======== ========
Weighted-average shares used to compute diluted net
 income per common share                               97,345  101,331
                                                     ======== ========
Note 1 - The condensed consolidated statements of operations include
 the results of MeziMedia from the acquisition consummation date (July
 30, 2007). Had this transaction been completed as of January 1, 2007,
 on an unaudited pro forma basis, revenue would have been $342.2
 million, and net income would have been $38.3 million, or $0.38 per
 diluted common share, for the six-month period ended June 30, 2007.
 These unaudited pro forma results are for information purposes only,
 are not necessarily indicative of what the actual results would have
 been had this transaction occurred on January 1, 2007, and are not
 necessarily indicative of future results.
Note 2 - Includes stock-based compensation expense   Six-month Period
 as follows:                                          Ended June 30,
                                                     -----------------
                                                       2008     2007
                                                     -------- --------
                                                        (Unaudited)
Sales and marketing                                  $  3,398 $  2,324
General and administrative                              6,403    5,065
Technology                                              1,316    1,169
                                                     -------- --------
  Total stock-based compensation expense             $ 11,117 $  8,558
                                                     ======== ========
                           VALUECLICK, INC.
       RECONCILIATION OF NET INCOME TO ADJUSTED-EBITDA (Note 1)
                            (In thousands)
                                                    Three-month Period
                                                      Ended June 30,
                                                    ------------------
                                                      2008      2007
                                                    --------- --------
                                                       (Unaudited)
Net income                                          $ 16,489  $17,628
     Less interest income and other, net              (1,413)  (3,375)
     Plus provision for income taxes                  12,791   11,767
     Plus amortization of intangible assets
      acquired in business combinations                7,779    5,470
     Plus depreciation and leasehold amortization      2,552    2,343
     Plus stock-based compensation                     5,328    4,920
                                                    --------- --------
Adjusted-EBITDA                                     $ 43,526  $38,753
                                                    ========= ========
                                                     Six-month Period
                                                      Ended June 30,
                                                    ------------------
                                                      2008      2007
                                                    --------- --------
                                                       (Unaudited)
Net income                                          $ 35,656  $36,262
     Less interest income and other, net              (4,464)  (6,314)
     Plus provision for income taxes                  26,518   25,258
     Plus amortization of intangible assets
      acquired in business combinations               15,539   11,241
     Plus depreciation and leasehold amortization      5,126    4,777
     Plus stock-based compensation                    11,117    8,558
                                                    --------- --------
Adjusted-EBITDA                                     $ 89,492  $79,782
                                                    ========= ========
Note 1 - "Adjusted-EBITDA" (earnings before interest, income taxes,
 depreciation, amortization, and stock-based compensation) included in
 this press release is a non-GAAP financial measure.
Adjusted-EBITDA, as defined above, may not be similar to adjusted-
 EBITDA measures used by other companies and is not a measurement
 under GAAP. Management believes that adjusted-EBITDA provides useful
 information to investors about the Company's performance because it
 eliminates the effects of period-to-period changes in income from
 interest on the Company's cash and marketable securities and the
 costs associated with income tax expense, capital investments, and
 stock-based compensation expense which are not directly attributable
 to the underlying performance of the Company's business operations.
 Management uses adjusted-EBITDA in evaluating the overall performance
 of the Company's business operations.
Though management finds adjusted-EBITDA useful for evaluating aspects
 of the Company's business, its reliance on this measure is limited
 because excluded items often have a material effect on the Company's
 earnings and earnings per common share calculated in accordance with
 GAAP. Therefore, management always uses adjusted-EBITDA in
 conjunction with GAAP earnings and earnings per common share
 measures. The Company believes that adjusted-EBITDA provides
 investors with an additional tool for evaluating the Company's core
 performance, which management uses in its own evaluation of overall
 performance, and a base-line for assessing the future earnings
 potential of the Company. While the GAAP results are more complete,
 the Company prefers to allow investors to have this supplemental
 metric since, with a reconciliation to GAAP, it may provide greater
 insight into the Company's financial results.
                           VALUECLICK, INC.
                      SEGMENT OPERATING RESULTS
                            (In thousands)
                       Three-month Period Ended Six-month Period Ended
                               June 30,                June 30,
                       ------------------------ ----------------------
                            2008        2007        2008       2007
                       -------------- --------- ------------ ---------
                             (Unaudited)             (Unaudited)
Media:
Revenue                $      79,319  $100,937  $   158,672  $209,359
Cost of revenue               34,527    39,885       71,010    78,417
                       -------------- --------- ------------ ---------
Gross profit                  44,792    61,052       87,662   130,942
Operating expenses            26,427    37,072       53,296    81,168
                       -------------- --------- ------------ ---------
Segment income from
 operations            $      18,365  $ 23,980  $    34,366  $ 49,774
                       ============== ========= ============ =========
Comparison Shopping
 and Search:
Revenue                $      45,439  $ 13,383  $   102,511  $ 26,602
Cost of revenue               11,800     5,269       25,587     9,630
                       -------------- --------- ------------ ---------
Gross profit                  33,639     8,114       76,924    16,972
Operating expenses            23,145     6,344       51,229    13,634
                       -------------- --------- ------------ ---------
Segment income from
 operations            $      10,494  $  1,770  $    25,695  $  3,338
                       ============== ========= ============ =========
Affiliate Marketing:
Revenue                $      29,827  $ 27,041  $    61,027  $ 55,228
Cost of revenue                4,527     3,249        8,726     6,186
                       -------------- --------- ------------ ---------
Gross profit                  25,300    23,792       52,301    49,042
Operating expenses            10,837     9,619       22,120    18,943
                       -------------- --------- ------------ ---------
Segment income from
 operations            $      14,463  $ 14,173  $    30,181  $ 30,099
                       ============== ========= ============ =========
Technology:
Revenue                $      10,070  $  7,768  $    19,348  $ 15,238
Cost of revenue                1,515     1,434        2,922     2,886
                       -------------- --------- ------------ ---------
Gross profit                   8,555     6,334       16,426    12,352
Operating expenses             4,068     3,410        8,162     6,849
                       -------------- --------- ------------ ---------
Segment income from
 operations            $       4,487  $  2,924  $     8,264  $  5,503
                       ============== ========= ============ =========
Total segment income
 from operations       $      47,809  $ 42,847  $    98,506  $ 88,714
Corporate expenses            (6,835)   (6,437)     (14,140)  (13,709)
Stock-based
 compensation                 (5,328)   (4,920)     (11,117)   (8,558)
Amortization of
 intangible assets            (7,779)   (5,470)     (15,539)  (11,241)
                       -------------- --------- ------------ ---------
Consolidated income
 from operations       $      27,867  $ 26,020  $    57,710  $ 55,206
                       ============== ========= ============ =========
Reconciliation of
 segment revenue to
 consolidated revenue:
Media                  $      79,319  $100,937  $   158,672  $209,359
Comparison Shopping
 and Search                   45,439    13,383      102,511    26,602
Affiliate Marketing           29,827    27,041       61,027    55,228
Technology                    10,070     7,768       19,348    15,238
Inter-segment
 eliminations                   (824)     (453)      (1,693)     (827)
                       -------------- --------- ------------ ---------
Consolidated revenue   $     163,831  $148,676  $   339,865  $305,600
                       ============== ========= ============ =========
                           VALUECLICK, INC.
                  SEGMENT OPERATING RESULTS (Note 1)
(Prior periods restated for the reclassification of Search123 from the
 Affiliate Marketing segment and into the Comparison Shopping segment
         in the second quarter of 2008. Amounts in thousands)
                                   Three-month Period Ended
                        ----------------------------------------------
                        March 31, June 30,  September 30, December 31,
                          2006      2006        2006          2006
                        --------- --------- ------------- ------------
                                         (Unaudited)
Media:
Revenue                 $ 79,385  $ 93,542  $     98,399  $   111,647
Cost of revenue           33,736    36,240        31,718       39,763
                        --------- --------- ------------- ------------
Gross profit              45,649    57,302        66,681       71,884
Operating expenses        27,054    34,416        42,296       43,557
                        --------- --------- ------------- ------------
Segment income from
 operations             $ 18,595  $ 22,886  $     24,385  $    28,327
                        ========= ========= ============= ============
Comparison Shopping and
 Search:
Revenue                 $  7,804  $  8,769  $      9,669  $    13,523
Cost of revenue            1,871     2,323         3,049        4,013
                        --------- --------- ------------- ------------
Gross profit               5,933     6,446         6,620        9,510
Operating expenses         5,917     5,526         5,304        6,460
                        --------- --------- ------------- ------------
Segment income from
 operations             $     16  $    920  $      1,316  $     3,050
                        ========= ========= ============= ============
Affiliate Marketing:
Revenue                 $ 24,604  $ 22,325  $     23,598  $    28,042
Cost of revenue            2,533     2,451         2,737        2,925
                        --------- --------- ------------- ------------
Gross profit              22,071    19,874        20,861       25,117
Operating expenses         8,319     7,664         8,474        7,786
                        --------- --------- ------------- ------------
Segment income from
 operations             $ 13,752  $ 12,210  $     12,387  $    17,331
                        ========= ========= ============= ============
Technology:
Revenue                 $  5,775  $  5,728  $      6,525  $     7,686
Cost of revenue            1,325     1,325         1,374        1,372
                        --------- --------- ------------- ------------
Gross profit               4,450     4,403         5,151        6,314
Operating expenses         3,082     3,130         3,245        3,239
                        --------- --------- ------------- ------------
Segment income from
 operations             $  1,368  $  1,273  $      1,906  $     3,075
                        ========= ========= ============= ============
Total segment income
 from operations        $ 33,731  $ 37,289  $     39,994  $    51,783
Corporate expenses        (8,612)   (3,476)       (6,743)      (8,101)
Stock-based
 compensation             (3,320)   (3,196)       (2,992)      (2,432)
Amortization of
 intangible assets        (5,655)   (5,450)       (5,462)      (5,234)
                        --------- --------- ------------- ------------
Consolidated income
 from operations        $ 16,144  $ 25,167  $     24,797  $    36,016
                        ========= ========= ============= ============

Reconciliation of
 segment revenue to
 consolidated revenue:
Media                   $ 79,385  $ 93,542  $     98,399  $   111,647
Comparison Shopping and
 Search                    7,804     8,769         9,669       13,523
Affiliate Marketing       24,604    22,325        23,598       28,042
Technology                 5,775     5,728         6,525        7,686
Inter-segment
 eliminations               (281)     (336)         (326)        (462)
                        --------- --------- ------------- ------------
Consolidated revenue    $117,287  $130,028  $    137,865  $   160,436
                        ========= ========= ============= ============
Note 1 - Starting with second quarter 2008 results, ValueClick has
 reclassified its Search123 business from the Affiliate Marketing
 segment and into the Comparison Shopping segment, and renamed the
 Comparison Shopping segment "Comparison Shopping and Search." For
 comparative information purposes, the Company has included
 reclassified historical segment financial performance.
                           VALUECLICK, INC.
                  SEGMENT OPERATING RESULTS (Note 1)
(Prior periods restated for the reclassification of Search123 from the
 Affiliate Marketing segment and into the Comparison Shopping segment
         in the second quarter of 2008. Amounts in thousands)
                                   Three-month Period Ended
                        ----------------------------------------------
                        March 31, June 30,  September 30, December 31,
                          2007      2007        2007          2007
                        --------- --------- ------------- ------------
                                         (Unaudited)
Media:
Revenue                 $108,422  $100,937  $     85,602  $    91,774
Cost of revenue           38,532    39,885        35,130       41,220
                        --------- --------- ------------- ------------
Gross profit              69,890    61,052        50,472       50,554
Operating expenses        44,096    37,072        33,269       30,957
                        --------- --------- ------------- ------------
Segment income from
 operations             $ 25,794  $ 23,980  $     17,203  $    19,597
                        ========= ========= ============= ============
Comparison Shopping and
 Search:
Revenue                 $ 13,219  $ 13,383  $     35,703  $    50,401
Cost of revenue            4,361     5,269        11,363       12,702
                        --------- --------- ------------- ------------
Gross profit               8,858     8,114        24,340       37,699
Operating expenses         7,290     6,344        16,129       26,741
                        --------- --------- ------------- ------------
Segment income from
 operations             $  1,568  $  1,770  $      8,211  $    10,958
                        ========= ========= ============= ============
Affiliate Marketing:
Revenue                 $ 28,187  $ 27,041  $     27,836  $    32,913
Cost of revenue            2,937     3,249         3,115        3,677
                        --------- --------- ------------- ------------
Gross profit              25,250    23,792        24,721       29,236
Operating expenses         9,324     9,619        10,208       10,647
                        --------- --------- ------------- ------------
Segment income from
 operations             $ 15,926  $ 14,173  $     14,513  $    18,589
                        ========= ========= ============= ============
Technology:
Revenue                 $  7,470  $  7,768  $      8,215  $     9,085
Cost of revenue            1,452     1,434         1,393        1,486
                        --------- --------- ------------- ------------
Gross profit               6,018     6,334         6,822        7,599
Operating expenses         3,439     3,410         3,388        3,902
                        --------- --------- ------------- ------------
Segment income from
 operations             $  2,579  $  2,924  $      3,434  $     3,697
                        ========= ========= ============= ============
Total segment income
 from operations        $ 45,867  $ 42,847  $     43,361  $    52,841
Corporate expenses        (7,272)   (6,437)       (5,714)     (10,865)
Stock-based
 compensation             (3,638)   (4,920)       (4,594)      (5,335)
Amortization of
 intangible assets        (5,771)   (5,470)       (6,726)      (7,982)
                        --------- --------- ------------- ------------
Consolidated income
 from operations        $ 29,186  $ 26,020  $     26,327  $    28,659
                        ========= ========= ============= ============

Reconciliation of
 segment revenue to
 consolidated revenue:
Media                   $108,422  $100,937  $     85,602  $    91,774
Comparison Shopping and
 Search                   13,219    13,383        35,703       50,401
Affiliate Marketing       28,187    27,041        27,836       32,913
Technology                 7,470     7,768         8,215        9,085
Inter-segment
 eliminations               (374)     (453)         (464)      (1,049)
                        --------- --------- ------------- ------------
Consolidated revenue    $156,924  $148,676  $    156,892  $   183,124
                        ========= ========= ============= ============
Note 1 - Starting with second quarter 2008 results, ValueClick has
 reclassified its Search123 business from the Affiliate Marketing
 segment and into the Comparison Shopping segment, and renamed the
 Comparison Shopping segment "Comparison Shopping and Search." For
 comparative information purposes, the Company has included
 reclassified historical segment financial performance.

CONTACT: ValueClick, Inc.
Gary J. Fuges, CFA, 1-818-575-4677

SOURCE: ValueClick, Inc.