L90 Revenue Up For Q2
The increased revenue doesn't mean profitability however, as the company also reported a net loss for the quarter.
In a telephone conference for journalists and investors held yesterday, John Bohan, L90's president/ceo, started off by discussing the downturn, but then said, "The trends we've seen are positive." The company's revenue was $12.7 million for the second quarter, a 21 percent increase from Q1.
Meanwhile, the company reported a net loss for the quarter of $5.3 million, or 22 cents per share.
The growth comes from the addition of 240 new marketing clients and 64 publishers. Fisher Price and Shearing Plough were among the new marketing clients and The Golf Channel and Women's Forum were new publishers.
Bohan also attributed the growth to the increased spending by Fortune 1000 companies, who are replacing the dot-coms as the Web's leading advertisers. Many have said that before, but Bohan has specific numbers, claiming brick and mortar advertisers accounted for 57 percent of online ad spending so far in 2001, up from 38 percent in 2000. They should account for 71 percent of the spending in Q4, he says.
He notes that particular industries are spending heavily, especially automotive with GM buying high, which will induce its competitors to follow suit.
He also attributed growth to the new large size and rich media units that are becoming popular, including the Skyscraper and animated ads L90 is running. The ads appeal to traditional advertisers interested in branding because the units promote brand recall, unlike the small size banners that sought click-throughs.
At the end of the telephone conference, L90 projected revenue of $14.5 million for Q3 and $15.1 million for Q4. The higher revenue will still produce losses for the quarters, although the company expects to be profitable by mid 2002 when it will "generate cash," according to a statement.