24/7 Sees Real Growth, Poised For '04 Expansion
Revenues increased to $13.2 million in the fourth quarter compared with $12.0 million a year ago. The Integrated Media Solutions unit -- which includes the 24/7 Web Alliance and 24/7 Search -- saw revenues rise to $9.2 million in the quarter compared with $7.5 million during the same period in 2002. Search marketing revenues jumped 19 percent to $2.7 million in the period compared with $2.3 percent in 2002 as traffic increased with 24/7 Real Media's expanding relationships with search engines.
The division that includes ad server OpenAdStream and Insight XE had fourth quarter revenues of $3.92 million, essentially flat from the $3.93 million in 2002. But paid impressions from these systems doubled in the quarter to 14.9 billion compared with the 7.5 billion in the fourth quarter of 2002. New Open AdSystem customers include FoxNews.com, eMedicine.com, Weather.com and CourtTV.com New Insight XE customers included FoxNews.com and NTL Home.
"Our business strategy is working excellent and increasingly bearing fruit," said David J. Moore, chairman and chief executive of 24/7 Real Media. He said that he believed the company was on track for sustained growth in 2004 and beyond.
The two months since the reporting period ended have been busy ones for 24/7 Real Media, which included a new media sales and technology with Lycos U.S. that boosted the company's 24/7 Web Alliance. It also completed the acquisition of Real Media Korea, which 24/7 Real Media plans to build into a stronger presence in Asia.
Increased business and the Lycos deal have pushed 24/7 Real Media's expectations for the first quarter and full year higher than it predicted near the end of last year. 24/7 Real Media now expects $15.5 million to $16.5 million in the first quarter and full-year revenues of $79 million and $84 million. Organic revenue growth over the next two to three years is expected to be between 20 percent and 25 percent.
"We are very optimistic about the company's prospects in 2004 and beyond," Moore said.
The earnings data and revenue guidance were released after the market's close Thursday. In trading Thursday on the Nasdaq, 24/7 Real Media rose 5 cents to $2.04 on volume of 2.5 million shares. That was close to the 52- week high of $2.49; the 52-week low was 19 cents.