Mobile advertising company Velti swung to a third-quarter profit of $623,000 from a net loss of $6.1 million in the same time a year earlier, according to a statement the company released yesterday.
The company brought in revenue of $38.2 million, up from $20.6 million in the same period a year before with new contracts from big brands like Budget Rent-A-Car, Days Inn, Jack in the Box, Revel Entertainment and grocery chain Safeway. Growing penetration of smartphones overall also helped.
Velti also expanded contracts with companies like Disney, Ford, GM, Groupon, HP, Johnson & Johnson, Motorola, Nissan, Orange, T-Mobile and Vodafone. Velti also opened sales offices in Turkey, Dubai and Brazil.
It added that it’s committed to becoming free-cash flow positive by this quarter next year. That means it will have enough revenue to cover all of its operating costs, including capital expenditures. (Velti is profitable on a GAAP basis, or in accordance with generally accepted accounting principles. But on an adjusted basis where the company accounts for foreign exchange gains and losses and non-cash share-based compensation, it had an adjusted net loss of $1.1 million in the quarter.)
Velti also raised its earnings guidance for the full year, saying it expects to bring in $180 to $185 million in revenue, up from previous guidance of $172 to $177 million. The recent Air2Web and MIG acquisitions should contribute $4 million in revenue this quarter, the company said. On the same day, Velti said it bought the U.K.’s Mobile Interactive Group for $25 million upfront plus $34 million in earnouts through 2013.