DoubleClick Revenues Up In Q3, Stock Falls On Warning

DoubleClick bounced back from a disappointing second quarter to meet third-quarter expectations on revenue of $81 million, but the company predicted its fourth-quarter revenue will be below forecasts--between $72 million and $79 million. The warning led to a 7 percent decline for DoubleClick shares in after hours trading.

Nevertheless, the third-quarter earnings are a marked improvement over disappointing second-quarter results that sent the company's stock tumbling in late July, and set the tone for a rough summer for Internet stocks on the Nasdaq.

DoubleClick's earnings were $15.4 million for the third quarter--up from $6.3 million over the same period last year. Revenue of $81 million was right in line with company expectations--up from $74.8 million in 2003, thanks in part to a boost from Abacus, its catalog and retail unit. After posting a tepid $20 million in the second quarter, Abacus finished with a record $30.5 million.

The company also reported third-quarter data segment revenues of $33 million, compared to $31 million third quarter 2003.

"I am pleased to report that we have made good progress in our core businesses," stated DoubleClick CEO Kevin Ryan. "The Data segment reported record revenues and Abacus operating margins were at an all-time high, while gross and operating margins continued to expand in Ad Management."

DoubleClick's TechSolutions division reported third-quarter revenue of $47.8 million versus $43.5 million in the third quarter 2003. The company attributed the year-over-year revenue boost to SmartPath and Performics, its most recent acquisitions. DoubleClick's Ad Management revenue dipped slightly over the year-ago period, to $30 million for the quarter from $31.0 million in the third quarter 2003.

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