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.