ValueClick’s Q4 Sales, Profits Grow

NEW YORK ValueClick said its fourth-quarter revenue and income grew sharply from a year earlier, thanks to strong demand for performance-based Internet advertising.

The Westlake Village, Calif., company, which provides Internet media and technology services, said its fourth-quarter revenue was $54.4 million, an 80 percent improvement from a year earlier. Net income was $13.5 million, or 17 cents a share, more than double the year-ago period. Excluding revenue from acquired companies, ValueClick’s business grew 49 percent.

“Media and affiliate marketing drove our growth,” said James Zarley, ValueClick’s CEO, on a conference call with analysts.

For the first quarter, ValueClick forecasts revenue of $48 million to $49 million and net income of 8 cents per share.

Zarley said 2004 was a “watershed year” for ValueClick’s affiliate-marketing business, which it greatly expanded when it bought Commission Junction to complement its BeFree affiliate-marketing platform. ValueClick also acquired opt-in e-mail company Hi-Speed Media and European comparison-shopping search engine Pricerunner.com.

Zarley said ValueClick would enter the U.S. shopping-search market early in the second quarter. The company plans to expand its affiliate-marketing platform to additional European markets and possibly Asia.