NEW YORK Digital marketing and technology company aQuantive this afternoon reported net profit of $4.1 million on revenue of $22.6 million.
The parent of Avenue A, i-Frontier and Atlas DMT realized Q1 net income of 7 cents per basic share, or 6 cents per diluted share. That is a 121 percent improvement over net income of $1.9 million, or 3 cents per basic share, and 3 cents per diluted share for the year-ago period.
First-quarter revenue for the Seattle-based company, which serves clients like Alaska Airlines and AstraZeneca, rose 52 percent to $22.6 million from $14.9 million during the same time a year ago.
The Seattle-based company said it expects second-quarter net income of 5-6 cents per diluted share on revenue of $22-24 million. For full-year 2004, aQuantive projected revenue of $94-102 million and earnings per share of 27-31 cents.
AQuantive's digital marketing services segment, which consists of Avenue A and i-Frontier, recorded Q1 revenue of $9.9 million, compared to $7.2 million in the year-earlier period. Operating income in the quarter for these interactive agencies was $2.1 million, an improvement over $833,000 in Q1 2003.
Atlas DMT, Go Toast and NetConversions, which make up aQuantive's digital marketing technologies segment, posted first-quarter revenue of $12 million, compared to $7.7 million a year ago. Operating income was $4.2 million, as opposed to $2.6 million in Q1 2003.
Though aQuantive announced the launch of DRIVEpm on Monday, the new division already has its first quarter under its belt. In Q1, DRIVEpm had revenue of $785,000 and an operating loss of $440,000. The aQuantive unit buys ad inventory from online publishers and resells it to advertisers based on Web surfers' past behavior, demographic makeup and geographic location, among other factors.
"We don't expect [DRIVEpm's] contribution to the bottom line to be significant [this year]," said aQuantive CEO Brian McAndrews during a conference call this afternoon.
AQuantive (AQNT) shares closed on the Nasdaq today at $9.83, down 21 cents or 2 percent. The stock's 52-week high is $13.55; its 52-week low, $6.23.