NEW YORK Digital marketing and technology company aQuantive exceeded its Q3 guidance, reporting this morning a net profit of $3.4 million on revenue of $58.6 million for the quarter.
The parent of Avenue A, i-Frontier and Atlas DMT, which achieved its ninth consecutive quarter of improved bottom line performance, realized Q3 net income of 6 cents per basic share, or 5 cents per diluted share. That compares to a net loss for the year-ago period of $677,000, or 1 cent per share, and a net profit in Q2 of $2.4 million, or 4 cents a share. In July, aQuantive projected third-quarter net income of 3-5 cents per share [IQ Daily Briefing, July 23].
The Seattle-based company, which services clients like AstraZeneca and Alaska Airlines, also surpassed its Q3 revenue projection of $53-57 million. Third-quarter revenue reached $58.6 million, up 70 percent from $34.4 million in Q3 2002 and 13 percent from $52 million in Q2.
The increase can be partly attributed to the addition of i-Frontier, the Philadelphia interactive agency aQuantive bought last December [IQ Daily Briefing, Dec. 3, 2002].
"As we turn the corner into 2004, we see solid growth and an array of opportunities to capitalize on our leadership position in digital marketing services and technologies," said aQuantive president and CEO Brian McAndrews in a statement.
For the fourth quarter, the company said it expects revenue of $60-65 million and net income of 5-7 cents per basic share, or 4-6 cents per diluted share.
The company revised its full-year guidance to revenue of $218-223 million and net income of 18-20 cents per basic share, or 15-17 cents per diluted share. In July, the company projected full-year revenue of $200-220 million and net income of 15-20 cents per share.
AQuantive (AQNT) shares were trading on the Nasdaq today at $10.81, down 16 cents or 1.5 percent. The stock's 52-week high is $13.55; its 52-week low, $2.21.