interclick Announces Q4 and 2010 Results

/ Source: GlobeNewswire

Annual Revenue Eclipses $100 Million

Quarterly Records in Revenue, EBITDA, Operating Income and EPS

38% Revenue Growth and Margin Expansion Expected in 2011

NEW YORK, Feb. 23, 2011 (GLOBE NEWSWIRE) -- interclick, inc. (Nasdaq:ICLK) announced today its financial results for the fourth quarter and year ended December 31, 2010.

Q4 financial highlights include the following:

  • Record quarterly results exceeded the Company's most recent guidance.
  • Revenue was $38.9 million, an increase of 78% year-over-year, driven by higher campaign revenue from both existing clients and new clients.
  • EBITDA was $5.8 million, up 178% year-over-year; EBITDA margin was 15.0%, versus 9.7% in the prior year period.
  • Operating expenses as a percentage of revenues declined to record low of 28.2%, highlighting the increasing leverage in interclick's business. 

"Our ongoing commitment to the development of our technology stack has allowed us to establish interclick as the clear industry leader in providing data-driven advertising solutions," said Michael Katz, interclick's CEO.  "As the landscape continues to evolve, OSM allows us to deliver cutting edge analytics in addition to highly successful campaign executions which has opened the door to new and exciting revenue opportunities in 2011 and beyond."

For the year ended December 31, 2010, interclick had revenue of $101.2 million, compared to revenue of $55.3 million in 2009, which represents an increase of 83% year-over-year. EBITDA totaled $13.0 million, an increase of 182% compared to $4.6 in 2009. interclick recorded net income of $4.1 million, or $0.16 per diluted share, compared to $0.5 million, or $0.02 per diluted share in 2009. Net income in Q4 2009 was favorably impacted by a tax benefit of $2.1 million.

The Company ended the year with $13.2 million in cash and cash equivalents, of which $0.8 million is restricted. As of December 31, 2010, interclick had 24.1 million shares outstanding and 30.3 million fully-diluted shares outstanding. Dilutive securities included 5.4 million stock options at an average exercise price of $2.93, and approximately 900,000 warrants at an average exercise price of $3.67.

2011 Business Outlook

The Company estimates 2011 revenue and EBITDA will be approximately $140 million and $19 million, growing year-over-year by 38% and 40% respectively. The Company estimates Q1 2011 revenue and EBITDA will both increase by approximately 60% to $23 million and $1.1 million, respectively. 

Conference Call

interclick will host a conference call to discuss its fourth quarter and full year 2010 financial results and 2011 business outlook on Wednesday, February 23, 2011, at 4:30 p.m. (EST). The conference call can be accessed by dialing toll-free (877) 638-4561 (U.S.) or (720) 545-0002 (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 February 22, 2012.

Reclassifications

Certain amounts in the accompanying financial tables relating to prior periods have been reclassified to conform to the fourth quarter 2010 presentation.  For more information, please refer to the Company's Form 10-K which is expected to be filed in March 2011.

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.

About interclick

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 first quarter and full year 2011 revenue, EBITDA and EPS 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.

(Financial Tables Attached)

CONTACT: Company Contact Roger Clark, CFO (646) 395-1776 roger.clark@interclick.com Investor Relations Contact Brett Maas, Hayden IR (646) 536-7331 brett@haydenir.com