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interclick Announces Q1 Results

Revenue Increases 67% Year-Over-Year
/ Source: GlobeNewswire

Revenue Increases 67% Year-Over-Year

EBITDA Grows 158% on Higher Gross Margins and Operating Income

NEW YORK, May 10, 2011 (GLOBE NEWSWIRE) -- interclick, inc. (Nasdaq:ICLK) announced today its financial results for the first quarter ended March 31, 2011.

Q1 financial highlights include the following:

  • Results exceeded the Company's most recent guidance.
  • Revenue was $23.8 million, an increase of 67% year-over-year.
  • Growth was driven by an increase in the number of clients seeking interclick's solution and higher average revenue per advertising campaign.
  • Gross profit margin was 46.7%, versus 44.9% in Q1 2010, due to effective supply chain management and favorable market conditions.
  • EBITDA was $1.8 million, up 158% year-over-year.
  • EBITDA margin was 7.5%, versus 4.8% in Q1 2010.
  • Operating income was $0.4 million, versus a loss of ($0.3 million) in Q1 2010.

"We're very encouraged by what we were able to accomplish in Q1," said Michael Katz, CEO of interclick, "From a sales, operating, and tech perspective, we are confident in our ability to deliver on the promise of an exceptional 2011."

The Company capitalized approximately $0.5 million of Technology Support costs attributable to the development of internal-use software in Q1 2011, as compared to $0 in the prior year period. Operating expenses included $0.7 million in legal litigation costs in Q1 2011. Such legal costs were not incurred in the year-ago period and are not part of the Company's normal cost structure. 

interclick recorded net income of $0.1 million, or $0.00 per diluted share in Q1 2011, compared to $0.2 million, or $0.01 per diluted share in Q1 2010. The prior year period was favorably impacted by a tax benefit of $1.1 million.

The Company ended the quarter with $12.2 million in cash and cash equivalents, of which $0.8 million is restricted. As of March 31, 2011, interclick had 24.5 million shares outstanding and 31.1 million fully-diluted shares outstanding. Dilutive securities included 5.7 million stock options at an average exercise price of $3.10, and approximately 870,000 warrants at an average exercise price of $3.67.

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.  For Q2 20111, the Company estimates revenue and EBITDA will be approximately $29 million and $2.5 million, respectively. 

Conference Call

interclick will host a conference call to discuss its first quarter financial results and business outlook on Tuesday, May 10, 2011, at 4:30 p.m. (Eastern Time). 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 May 10, 2012.

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, 2010. 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 Investor Relations Contact Brett Maas, Hayden IR (646) 536-7331