ValueClick Inc. (VCLK) filed Quarterly Report for the period ended 2010-06-30.
Valueclick Inc. has a market cap of $893.7 million; its shares were traded at around $10.99 with a P/E ratio of 16 and P/S ratio of 2.2. Valueclick Inc. had an annual average earning growth of 17.9% over the past 5 years.VCLK is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:Revenue. Consolidated revenue for the three-month period ended June 30, 2010 was $99.6 million compared to $104.1 million for the same period in 2009, representing a 4.3% decrease, or $4.5 million.
Media segment revenue decreased to $31.6 million for the three-month period ended June 30, 2010 compared to $32.4 million for the same period in 2009. The decrease of $796,000, or 2.5%, in Media segment revenue was primarily attributable to lower volumes of certain performance-based display advertising offers as compared to the year ago period.
Affiliate Marketing segment revenue increased to $28.7 million for the three-month period ended June 30, 2010 compared to $26.1 million in the same period in 2009. This increase of $2.7 million, or 10.3%, was primarily due to an increase in the number of customers and an increase in transaction volumes associated with existing customers.
Owned & Operated Websites segment revenue decreased to $32.0 million for the three-month period ended June 30, 2010 compared to $38.8 million in the same period in 2009. The decrease of $6.8 million, or 17.5%, was attributable to a change in the volume of revenue we were able to generate from a major customer, Yahoo, due to changes made by this customer in the fourth quarter of 2009. Due to the timing of this customer change in late 2009, we expect to record year-over year revenue decreases in our Owned & Operated Websites segment of this magnitude through the third quarter of 2010. Even after the change we experienced with the customer noted above, the Owned & Operated Websites segment revenue is concentrated with two major customers, Google and Yahoo. A loss of, or reduction of revenue from, one or both of these customers could have a significant negative impact on the revenue and profitability of this segment and the Company.
Cost of Revenue and Gross Profit. Cost of revenue for the Media and Owned & Operated Websites segments consists primarily of amounts that we pay to website publishers and distribution partners that are directly related to a revenue-generating event. We pay these entities on a CPC, CPA, CPL, or CPM basis. Cost of revenue for all segments also includes labor costs, depreciation on revenue-producing technologies and Internet access costs. Our consolidated cost of revenue was $27.3 million for the three-month period ended June 30, 2010 compared to $28.2 million for the same period in 2009, a decrease of $886,000, or 3.1%. Our consolidated gross margin was 72.5% and 72.9% for the three-month periods ended June 30, 2010 and 2009, respectively.
Cost of revenue for the Media segment decreased $242,000, or 1.4%, to $16.9 million for the three-month period ended June 30, 2010 compared to $17.2 million for the same period in 2009. Our Media segment gross margin remained relatively flat at 46.6% for the second quarter of 2010 compared to 47.1% for the same period in 2009.
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