Bucking the generally negative trend for interactive marketing firms, Digitas last week reported healthy revenue gains for both its recently completed fourth quarter and its first fiscal year as a publicly traded company.
“We exceeded every single metric we gave people” when the Boston-based concern went public last spring, said chairman and chief executive David Kenny. “We’re doing what we intended: creating the new [global marketing] network.”
Fourth-quarter revenue rose 50 percent to $79.5 million, compared with $53 million for the same period a year ago. Digitas’ net revenue for the fiscal year ended Dec. 30 hit $288 million, a 54-percent boost over its 1999 net revenue of $187 million.
The company posted a net loss of $5.5 million, or 10 cents per share, in the fourth quarter of 2000, and $23.2 million, or 41 cents per share, for the year. That’s an improvement over the $13.2 million quarterly and $37.6 million annual Digitas reported a year ago. Digitas stock last week traded in the $8-9 range on the Nasdaq Exchange. It’s 52-week high was $40.
Company executives and analysts attributed the company’s relative immunity to the recent Internet upheaval to its solid base of blue-chip clients. Kenny also cited an adherence to business fundamentals. “You can’t grow your head count ahead of your revenue. You can’t work for clients whose products you don’t believe in. You can’t break these rules—and we didn’t.”
While many competitors are predicting flat first quarters, Digitas re forecasts 25- to 30-percent growth. Kenny also plans to add one office domestically and at least two outside the U.S. by year’s end.
Up Year for Digitas
