24/7 Real Media, Inc., surprised analysts by beating their estimates with $41.7 million in revenues for the first quarter of 2006. The company did have a GAAP net loss of $0.16 per share, compared to a GAAP net loss of $0.01 per share in last year’s first quarter due to stock-based compensation expenses. 24/7 Real Media is an international digital marketing firm
This quarter’s revenues were a 48% jump from last year’s first quarter results, and a 3% rise from the fourth quarter of 2005.
CEO Dave Moore said that 24/7’s search arm has been the primary reason for this increase in revenues. The firm’s Decide DNA bid management technology is their search segment’s driving force. 24/7’s search business saw revenue increase 85% from $9.6 million from last year’s first quarter to $17.8 million for this year’s first quarter. The search arm’s gross margins were 26.6% in the first quarter. The company’s acquisition of Australia’s Decide Interactive in 2004 gave them a foothold into the Asia-Pacific markets.
24/7 also indicated that it saw solid growth in its international business in places such as Europe, Korea, and Japan. Fifty-eight percent of the company’s revenue was derived from operations outside of the U.S.
Moore also pointed out that 24/7’s first quarter pro forma operating income (which excludes unusual transactions or events) resulted in $0.07 per share, which was an increase from the $0.03 per share in the first quarter of 2005. “More and more of the revenue that we generate is beginning to fall to the bottom line,” Moore said.
24/7’s Media Solutions business increased 28% from last year’s $14.2 million to $18.2 million in this year’s first quarter. Gross margins for the first quarter of this year were 31%. The firm’s Technology Solutions saw its revenue jump from last year’s $5.2 million to $6.9 million in this year’s first quarter. Gross margins for this arm increased 79.4% from last year, not taking into account stock-based compensation expenses.
Moore indicates that 24/7 will look to expand its staff and make a move into China.
24/7 expects to see second quarter revenue between $46 and $47 million, while anticipating $190 to $200 million for the entire year and pro forma operating income between $0.35 and $0.36 per share.
Source:
http://www.clickz.com/news/article.php/3603661
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