• by Masha Geller , April 12, 2001

A few minutes ago, DoubleClick, an indicator of the health of the online advertising industry, announced financial results for the first quarter of 2001, and provided a business outlook for the remainder of the year. There's definitely room for optimism.

According to the announcement, DoubleClick exceeded consensus analyst expectations despite a weak online advertising environment. The company reported revenue of $114.9 million for the first quarter of 2001, an increase of 4% over the same period last year. Gross profit for the first quarter of 2001 was $64.5 million, a 12% increase over gross profit of $57.6 million in the first quarter of 2000.

Predictably, the DoubleClick Networks generated global media revenue for the first quarter of $46.1 million, a decrease of 23% versus the same period last year and 24% versus Q4 2000. The good news, however, is that the proportion of revenues from traditional advertisers continued to grow, from about 55% in Q4 2000, to over 59% in Q1 2001.

Over 2,300 customers advertised on the global DoubleClick Networks during the quarter, and 80% of companies who advertised on DoubleClick's Networks in Q4 2000 also did so during Q1 2001.

During the quarter, DoubleClick restructured its operations, with most of the changes occurring in Global Media. In the United States, DoubleClick Media will now offer two distinct networks. The DoubleClick Brand Network contains sites that are recognized media brands with strong traffic and significant marketable inventory, including Kelley Blue Book, NASDAQ, Cheap Tickets, and Better Homes and Gardens.