ValueClick announces preliminary second quarter 2008 financial results

ValueClick Announces Preliminary Second Quarter 2008 Financial Results<br />

ValueClick Announces Preliminary Second Quarter 2008 Financial Results

Company Revises Fiscal Year 2008 Guidance Second Quarter 2008 Conference Call Scheduled for July 31


2008--ValueClick, Inc. (Nasdaq: VCLK) today announced preliminary

results for the second quarter ended June 30, 2008. The Company


  • Revenue between $163 and $164 million compared to the

    Company's prior guidance range of $166 to $170 million;

  • Adjusted-EBITDA(1) between $43 and $43.5 million compared to

    the Company's prior guidance range of $40 to $42 million; and

  • Diluted net income per common share between $0.17 and $0.18

    compared to the Company's prior guidance range of $0.15 to


The macroeconomic environment negatively impacted revenue in the

quarter, primarily in the U.S. comparison shopping and U.S. display

advertising businesses. Lead generation revenue within the Media

segment was essentially flat relative to first quarter 2008 revenue.

Expense management initiatives in the quarter resulted in

profitability above the previously-issued guidance.

"Due to increasing macroeconomic uncertainty, we no longer

anticipate the seasonal strength in ad spending we typically see in

the second half of the year," said Tom Vadnais, chief executive

officer of ValueClick. "As a result, we have lowered our fiscal year

2008 outlook. However, we continue to focus on gross margins and

operating expenses such that we expect to maintain an adjusted-EBITDA

margin for fiscal year 2008 that is consistent with our prior

guidance. The Company currently has $101 million in authorization in

its share repurchase program, and we plan to be actively buying back

stock in the coming weeks."

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.

Based on its preliminary second quarter results and outlook for

the remainder of the year, ValueClick is updating its fiscal year 2008

guidance ranges, issued previously on May 6, 2008. The updated fiscal

year 2008 guidance is as follows:

Fiscal Year 2008                    Previous Guidance Updated Guidance
----------------------------------- ----------------- ----------------
Revenue $730-$745 million $655-$675
----------------------------------- ----------------- ----------------
Adjusted-EBITDA $190-$195 million $172-$176
----------------------------------- ----------------- ----------------
Adjusted-EBITDA Margin at Mid-
Point of Guidance Ranges 26.1% 26.2%
----------------------------------- ----------------- ----------------
Diluted net income per common share $0.81-$0.83 $0.69-$0.71
----------------------------------- ----------------- ----------------

Consistent with prior guidance, 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 percent effective tax rate.

The mid-point of updated fiscal year 2008 revenue guidance

reflects the following year-over-year revenue growth rates per


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

ValueClick has yet to finalize its second quarter 2008 results.

All figures included in this release remain subject to the completion

of normal quarter-end procedures. Preliminary diluted net income per

common share for second quarter 2008 assumes an effective tax rate of

42 percent.

Financial Results Call Scheduled for July 31

ValueClick also announced today that it will release the full

details of the finalized second quarter 2008 financial results on

Thursday, July 31 at approximately 4:05 p.m. ET.

On July 31 at 4:30 p.m. ET, chief executive officer Tom Vadnais

and chief financial officer John Pitstick will host a conference call

and Webcast to discuss second quarter results and update investors on

its share repurchase program. Analysts and institutional investors may

obtain the July 31 conference call dial-in information through

StreetEvents ( or through ValueClick's Investor

Relations department at (818) 575-4677. The live Webcast of the

conference call will be available on the Investor Relations section of A replay of the conference call will be available

through July 31 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,,, and PriceRunner. For more

information, please visit

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.

Adjusted-EBITDA, as defined above, may not be similar to

adjusted-EBITDA measures used by other companies and is not a

measurement under GAAP.

(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.

CONTACT: Gary J. Fuges, CFA

ValueClick, Inc.