• by Ross Fadner , April 15, 2004

DoubleClick, the online ad-serving and technology bellwether, reported robust first-quarter sales growth of 13 percent on Thursday, although its shares tumbled nearly 17 percent after the closing bell. Shares fell to $1.99, or 16.7 percent, to $9.95 in after-hours trades. The company reported net income of $7.7 million (5 cents per share) versus $906,000 (a penny per share) for the same period a year ago.

In a late-afternoon earnings call, DoubleClick reported first-quarter 2004 revenues of $68 million versus $60 million in the year-ago period. The company's TechSolutions segment saw a $3.8 million revenue jump compared to the same period in 2003, to $45.3 million. Ad management revenues rose $2.2 million to $33.3 million for the first quarter.

DoubleClick recorded year-over-year improvements in revenue, gross margins, and operating margins, stemming primarily from client acquisitions and increased usage of DoubleClick products by existing clients.

Since the beginning of the year, DoubleClick said it has signed more than 40 new ad management solutions clients globally, including Sports Illustrated, Mass Transit Interactive, UOL-Universo Online-Brazil, Initiative Media Australia, Adnovia, ESPN STAR Sports, and an exclusive contract with GSD&M for the use of its online rich media and media planning solutions, in addition to ad management products. "We had growth across all of our product groups, and we expect record profitability in 2004," said Kevin Ryan, DoubleClick CEO, in a release. The company ended the quarter with a net cash position of $490.2 million, or $3.60 per share. Ryan hinted that DoubleClick's healthy position may lead to mergers and acquisitions activity this year. "The core business is generating cash, and we have enough funds left for possible M&A activity."

The company indicated that its March 19 acquisition of marketing resource management software company, SmartPath, will factor into second-quarter TechSolutions results. The company expects SmartPath to add $4 million in revenue for the remainder of 2004. As a result, DoubleClick has raised its 2004 revenue outlook to between $294 and $314 million.