ValueClick Inc. Reports Operating Results (10-Q)

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Aug 07, 2012
ValueClick Inc. (VCLK, Financial) filed Quarterly Report for the period ended 2012-06-30.

Valueclick Inc has a market cap of $1.23 billion; its shares were traded at around $16.09 with a P/E ratio of 11.1 and P/S ratio of 2.2. Valueclick Inc had an annual average earning growth of 4.6% over the past 5 years.

Highlight of Business Operations:

Total sales and marketing expenses for the three-month period ended June 30, 2012 were $20.9 million compared to $14.3 million for the same period in 2011, an increase of $6.6 million, or 46.3%. The increase was primarily due to the acquisition of Dotomi, including the associated higher stock-based compensation as described below, and increases in salaries and wages as a result of increased headcount in our sales staff. Our sales and marketing expenses as a percentage of revenue increased to 13.0% for the three-month period ended June 30, 2012 compared to 11.4% for the same period in 2011.

Technology. Technology expenses include costs associated with the maintenance and ongoing development of our technology platforms, including compensation and employee benefits for our engineering and network operations departments, as well as costs for contracted services and supplies. Technology expenses for the three-month period ended June 30, 2012 were $16.9 million, or 10.5% of revenue, compared to $10.9 million, or 8.7% of revenue, for the same period in 2011, an increase of $6.1 million, or 55.8%. The increase in technology expenses was primarily due to the inclusion of Dotomi, including the associated higher stock-based compensation as described below.

Sales and Marketing. Total sales and marketing expenses for the six-month period ended June 30, 2012 were $42.1 million compared to $26.9 million for the same period in 2011, an increase of $15.2 million, or 56.3%. The increase was primarily due to the acquisitions of Dotomi and Greystripe, including the associated higher stock-based compensation as described below, and increases in salaries and wages as a result of increased headcount in our sales staff. Our sales and marketing expenses as a percentage of revenue increased to 13.4% for the six-month period ended June 30, 2012 compared to 11.1% for the same period in 2011.

Technology. Technology expenses for the six-month period ended June 30, 2012 were $33.0 million, or 10.5% of revenue, compared to $21.0 million, or 8.7% of revenue, for the same period in 2011, an increase of $12.0 million, or 57.0%. The increase in technology expenses was primarily due to the inclusion of the Dotomi and Greystripe acquisitions, including the associated higher stock-based compensation as described below.

Segment Income from Operations. Affiliate Marketing segment income from operations for the six-month period ended June 30, 2012 increased 7.6%, or $3.0 million, to $42.6 million, from $39.6 million in the same period of the prior year, and represented 60.3% and 59.0% of Affiliate Marketing segment revenue in these respective periods.

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