• by Ross Fadner , May 6, 2004

Ad solutions network 24/7 Real Media and Internet audience measurement and analysis firm NetRatings both released their first-quarter 2004 results Thursday. Both companies recorded impressive 47 percent revenue increases over first quarter 2003.

24/7 announced first-quarter revenues of 17.4 million, up from 11.8 million from the same period last year. Sequentially, 24/7 increased revenues by 32 percent over fourth-quarter 2003's $13.2 million. Performance exceeded the company's pervious guidance of $15.5-$16.5 million for the quarter.

David J. Moore, chairman and CEO of 24/7 Real Media, attributed the strong results to new client signings and recent acquisitions. "The completion of the acquisition of Real Media South Korea and the signing of the Lycos business development partnership and the raising of capital have positioned the company favorably in the long term," Moore said in a statement.

In February 2004, 24/7 signed two multi-year agreements with Lycos in the United States, in which Lycos outsourced all of its ad sales to 24/7. The company completed the acquisition of Real Media South Korea in January 2004. 24/7 raised 38.1 million in a public offering of its common stock during the first quarter, which the company intends to use for potential acquisitions. During the first quarter, 24/7 recorded $52.8 million in cash and cash equivalents and $58.5 million in total stockholder's equity.

Also boasting a 47 percent year-over-year first-quarter revenue increase, Nielsen unit NetRatings posted $13.3 million for the first quarter of 2004. Cash, cash equivalents, and short-term investments at the end of the quarter were $198 million compared to $210 million at the end of 2003. This decrease reflects cash used for the acquisition of RedSheriff and the accumulation of its balance, in addition to other operational costs.

William Pulver, CEO, NetRatings, acknowledged a strong first quarter, and announced several new market research projects for the second quarter: MegaPanel and HomeScan Online, the online equivalent to ACNielsen's tracking panel for consumer packaged goods.

The company reported a 76 percent global renewal rate for the first quarter 2004--excluding RedSheriff clients--up from 72 percent in 2003, resigning aQuantive, CareerBuilder.com, Deutsch, Dow Jones Interactive, Forbes.com, Google, Modem Media, Tiscali, U.S. News and Report. Including RedSheriff clients, NetRatings has more than 1,166 clients worldwide.

NetRatings second-quarter revenues are expected to be between $13.8 and $14.2 million; full-year revenues are purported to be between $55 and $59 million.