Innovative Technology Drives Record Performance
84% Revenue Growth and 192% Increase in EBITDA
Full Year Business Outlook Increased
NEW YORK, Nov. 2, 2010 (GLOBE NEWSWIRE) -- interclick, inc. (Nasdaq:ICLK) announced today its financial results for the third quarter ended September 30, 2010.
Revenue was $26.4 million in Q3 2010, a quarterly record and 84% year-over-year increase. Growth was attributed to higher campaign revenue from both existing and new clients seeking interclick's data-driven solution.
Gross profit was $12.2 million in Q3 2010, an all-time high and up 68% year-over-year. Gross profit margin was 46.0%, up 160 basis points sequentially from the second quarter period.
EBITDA, a non-GAAP measure, was a record $4.1 million in Q3 2010, representing a margin of 15.5%, also an all-time high. EBITDA exceeded interclick's previous guidance due to higher revenue and slightly higher gross profit margin than previously anticipated, and incremental operating efficiencies achieved as a result of interclick's innovative platform capabilities.
Operating income was $2.9 million, net income was $1.2 million, and earnings per share was $0.05 in Q3 2010. Operating expenses increased 41% year-over-year to support the growth of interclick's business, but as a percentage of revenue declined to record low of 35.0%. Income tax expense of $1.5 million was based on the Company's estimated effective tax rate of 54% for the first nine months of 2010.
"Our business continues to greatly outpace the IAB's most recently reported industry growth rates, and we're rapidly improving profitability in the process," said Michael Mathews, interclick's CEO. "The Company's financial profile has never been stronger."
"An ongoing commitment to technological innovation and operational excellence is fueling our success," added Michael Katz, interclick's President and CEO-Designee. "This has also provided the groundwork for an outstanding fourth quarter and a very promising 2011."
The Company ended the quarter with $12.3 million in cash and cash equivalents, of which $1.3 million is restricted. As of September 30, 2010, interclick had 23.8 million shares outstanding and 30.4 million fully-diluted shares outstanding.
According to the IAB Internet Advertising Revenue Report published on October 12, 2010, display-related advertising revenues increased 15.8% in Q2 2010 from the prior year period. A copy of the full report is available at .
The Company expects 2010 revenue to exceed $98 million, growing year-over-year by at least 77%, and reflecting an increase from previous guidance of $90 million. interclick estimates 2010 EBITDA will be approximately $12.8 million, growing year-over-year by approximately 177%, and reflecting an increase from previous guidance of $9 million. The Company projects Q4 revenue and EBITDA to exceed $36 million and $5.6 million, respectively.
interclick will host a conference call to discuss its third quarter financial results and business outlook on Tuesday, November 2, 2010, at 4:30 p.m. (EDT). The conference call can be accessed by dialing toll-free (877) 312-8818 (U.S.) or (253) 237-1185 (international). A live audiocast of the conference call can be accessed from the Company's website at . A replay of the audiocast will be available through November 2, 2011.
Certain amounts in the accompanying financial tables relating to prior periods have been reclassified to conform to the third quarter 2010 presentation. Please refer to the Company's Form 10-Q for more information.
Non-GAAP Financial Measure
interclick uses a non-GAAP financial measure in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparison. Management believes that the non-GAAP financial measure provides meaningful supplemental information regarding performance and liquidity by excluding certain expenses that may not be indicative of the performance of our core cash operations. interclick believes that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting and analyzing future periods. interclick believes this non-GAAP financial measure is useful to investors because it allows for greater transparency with respect to key metrics used by management.
EBITDA. As is common in the industry, interclick uses EBITDA as a measure of performance to demonstrate operating income exclusive of interest, taxes, depreciation, amortization (including stock-based compensation), and other income and expense of a non-operating nature. interclick, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes certain of its decisions based on EBITDA. Since an outside investor may base its evaluation of interclick's performance on interclick's net income or loss, there is a limitation to the EBITDA measurement. EBITDA is not, and should not be considered, an alternative to net income or loss, income or loss from operations or any other measure for determining operating performance or liquidity, as determined under GAAP.
To comply with Regulation G of the Securities and Exchange Commission, interclick attached to this press release, and will post to its website at , a reconciliation of the non-GAAP measure to the nearest comparable GAAP measure that is presented in this release.
interclick, inc. (Nasdaq:ICLK) is a technology company providing solutions for data-driven advertising. Combining scalable media execution capabilities with analytical expertise, interclick delivers exceptional results for marketers. The Company's proprietary Open Segment Manager (OSM) platform organizes and valuates billions of data points daily to construct the most responsive digital audiences for major digital marketers. For more information, visit .
Cautionary Note Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including fourth quarter and full year 2010 revenue and EBITDA outlook and growth. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "projects," "seeks," "believes," "estimates," "expects" and similar references to future periods.
Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the impact of intense competition, the continuation or worsening of current economic conditions, a potential decrease in corporate advertising spending, a potential decrease in consumer spending and the condition of the domestic and global credit and capital markets.
Further information on our risk factors is contained in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2009. Any forward-looking statement speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time-to-time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
CONTACT: interclick, inc. Roger Clark, CFO (646) 395-1776 firstname.lastname@example.org Hayden IR Investor Relations Contact Brett Maas (646) 536-7331 email@example.com