Sales, Profit Rise for aQuantive

Share this article:
AQuantive reported strong sales and profit growth in the first quarter, driven by increased demand for Internet advertising.


The Seattle-based online ad company yesterday reported sales of $22.6 million, a 52 percent increase from the comparable period a year ago. Net income was $4.1 million, more than double the $1.9 million from last year's first quarter.


The company's digital marketing services unit, comprising agencies Avenue A and iFrontier, saw revenue rise 38 percent to $9.9 million. Operating income was $2.1 million.


The technology unit, consisting of ad server Atlas DMT, search bid tool Go Toast and Web usability technology NetConversions, had a 55 percent sales increase to $12 million. Operating income was $4.2 million, up 61 percent on the year.


For the first time, aQuantive reported results of its DRIVEpm unit, which serves ads based on user behavior tracked through Atlas DMT. The unit had $785,000 in sales in the quarter and a $440,000 net loss. DRIVEpm buys ads on an impression basis, then sells the inventory on a performance basis by using Atlas DMT to match ad messages with user behavior.


"We see it as a business that has significant growth opportunity in the future," aQuantive CEO Brian McAndrews said in a conference call with investors.


The company increased its sales and profit outlook for the year. It expects $94 million to $102 million in revenue and net income of 27 cents to 32 cents a share.


Share this article:
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Ramp Introduces Video Platform for Marketers

Ramp Introduces Video Platform for Marketers

The cloud-based platform syncs with marketing automation and capitalizes on user behavior to extend view times.

CMOs Who Take Charge of Digital Make More Money

CMOs Who Take Charge of Digital Make More ...

Chief marketers who usurp the CDO role earn the board's respect, as well as base salaries of $500,000 and up, says a new study.

Microsoft Set to Overtake Yahoo in Ad Revenues

Microsoft Set to Overtake Yahoo in Ad Revenues

Marissa Mayer can take credit for reversing ad declines. Still, her company will fall out of digital's Top 3 by year's end, according to eMarketer.