PRESSROOM

ValueClick announces first quarter 2008 results

ValueClick Announces First Quarter 2008 Results<br />

ValueClick Announces First Quarter 2008 Results

Results Exceed Previously Issued Guidance; Company Repurchases 3.2 Million Shares Year-to-Date and Increases Repurchase Authorization by $100 Million


WESTLAKE VILLAGE, Calif., May 06, 2008 (BUSINESS WIRE) -- ValueClick, Inc. (Nasdaq:VCLK) today reported financial results

for the first quarter ended March 31, 2008. Revenue,

adjusted-EBITDA(1) and diluted net income per common share for the

quarter exceeded previously issued guidance.


The Company also announced that it has repurchased 3.2 million

shares year-to-date for $54.7 million as part of its Stock Repurchase

Program, and that the Company's board of directors has authorized a

$100 million increase to the program.


"The first quarter demonstrated the strategic value of our

diversified performance marketing offerings and our operating team's

ability to deliver strong financial performance," said Tom Vadnais,

chief executive officer of ValueClick. "In spite of some macroeconomic

weakness and continued challenges in the lead generation industry, we

delivered solid performance in the quarter and continue to believe we

will achieve our 2008 financial performance goals."


First Quarter 2008 Results


Revenue for the first quarter of 2008 was $176.0 million, which

exceeded the high end of the Company's previously issued guidance and

increased $19.1 million, or 12 percent, from $156.9 million for the

first quarter of 2007. First quarter 2008 results include three months

of operations from MeziMedia, which was acquired in July 2007.


Income before income taxes for the first quarter of 2008 was $32.9

million compared to $32.1 million for the first quarter of 2007.

Stock-based compensation expense and amortization of intangibles

expense totaled $13.5 million for the first quarter of 2008, compared

to $9.4 million for the first quarter of 2007.


Adjusted-EBITDA for the first quarter of 2008 was $46.0 million,

which exceeded the high end of the Company's previously issued

guidance and compared to $41.0 million for the first quarter of 2007.


Net income for the first quarter of 2008 was $19.2 million, or

$0.19 per diluted common share, which exceeded the high end of the

Company's previously issued guidance and compared to $18.6 million, or

$0.18 per diluted common share, for the first quarter of 2007.


The consolidated balance sheet as of March 31, 2008 includes $195

million in cash, cash equivalents and marketable securities, more than

$697 million in total stockholders' equity and no long-term debt.


Stock Repurchase Program Update


Today, ValueClick also provided an update on its Stock Repurchase

Program. In the first quarter of 2008, the Company repurchased 2.3

million shares of its outstanding common stock for $39.3 million.

Year-to-date, the Company has repurchased approximately 3.2 million

shares for $54.7 million. ValueClick today also announced that its

board of directors has authorized a $100 million increase to the

Company's Stock Repurchase Program. As of today, up to $101.3 million

of ValueClick's capital may be used to repurchase shares of the

Company's common stock under the Stock Repurchase Program.


Business Outlook


The following statements are based on current expectations. These

statements are forward-looking, and actual results may differ

materially. These statements do not include the potential impact of

any mergers, acquisitions or other business combinations that may be

completed after the date of this release. Actual stock-based

compensation expense may differ from these estimates based on the

timing and amount of stock awards granted, the assumptions used in

stock award valuation and other factors. Actual income tax expense may

differ from these estimates based on tax planning, changes in tax

accounting rules and laws, and other factors.


Based on its first quarter results and outlook for 2008,

ValueClick is updating its fiscal year 2008 guidance ranges, issued

previously on February 13, 2008:


Fiscal Year 2008                   Previous Guidance Updated Guidance
----------------------------------------------------------------------
Revenue $730-$745 million $730-$745 million
----------------------------------------------------------------------
Adjusted-EBITDA $185-$190 million $190-$195 million
----------------------------------------------------------------------
Diluted net income per common
share $0.78-$0.81 $0.81-$0.83
----------------------------------------------------------------------

Fiscal year 2008 diluted net income per common share guidance

includes a reduction of approximately $0.15 per diluted common share

for stock-based compensation expense and assumes a 42 percent

effective tax rate.


Additionally, ValueClick is announcing guidance for the second

quarter of 2008:


Second Quarter 2008                                      Guidance
----------------------------------------------------------------------
Revenue $166-$170 million
----------------------------------------------------------------------
Adjusted-EBITDA $40-$42 million
----------------------------------------------------------------------
Diluted net income per common share $0.15-$0.16
----------------------------------------------------------------------

Second quarter 2008 diluted net income per common share guidance

includes a reduction of $0.04 per diluted common share for stock-based

compensation expense and assumes a 42 percent effective tax rate.


Conference Call Today


Tom Vadnais, chief executive officer, and John Pitstick, chief

financial officer, will present an overview of the results and other

factors affecting ValueClick's financial performance for the first

quarter during a conference call and webcast on May 6, 2008 at 1:30PM

PT. Investors and analysts may obtain the dial-in information through

StreetEvents (www.streetevents.com).


The live webcast and other information of potential interest to

investors will be available to the public in the Investor Relations

section of the Company's website (www.valueclick.com). Replay

information will be available through May 13 and may be accessed at

(888) 203-1112 for domestic callers and (719) 457-0820 for

international callers. The passcode is 4955781.


About ValueClick


ValueClick, Inc. (Nasdaq:VCLK) is one of the world's largest

integrated online marketing services companies, offering comprehensive

and scalable solutions to deliver cost-effective customer acquisition

for advertisers and transparent revenue streams for publishers.

ValueClick's performance-based solutions allow its customers to reach

their potential through multiple online marketing channels, including

affiliate and search marketing, display advertising, lead generation,

ad serving and related technologies, and comparison shopping.

ValueClick brands include Commission Junction, ValueClick Media,

Mediaplex, Smarter.com, CouponMountain.com, and PriceRunner. For more

information, please visit www.valueclick.com.


This release contains forward-looking statements that involve

risks and uncertainties, including, but not limited to, the risk that

market demand for on-line advertising in general, and performance

based on-line advertising in particular, will not grow as rapidly as

predicted, and the risk that legislation and governmental regulation

could negatively impact the Company's performance. Actual results may

differ materially from the results predicted, and reported results

should not be considered an indication of future performance.

Important factors that could cause actual results to differ materially

from those expressed or implied in the forward-looking statements are

detailed under "Risk Factors" and elsewhere in filings with the

Securities and Exchange Commission made from time to time by

ValueClick, including, but not limited to: its annual report on Form

10-K filed on February 29, 2008; recent quarterly reports on Form

10-Q; and other current reports on Form 8-K. ValueClick undertakes no

obligation to release publicly any revisions to any forward-looking

statements to reflect events or circumstances after the date hereof or

to reflect the occurrence of unanticipated events.


(1) Adjusted-EBITDA is defined as GAAP (Generally Accepted

Accounting Principles) net income before interest and other income,

income taxes, depreciation, amortization, and stock-based

compensation. Please see the attached schedule for a reconciliation of

GAAP net income to adjusted-EBITDA, and a discussion of why the

Company believes adjusted-EBITDA is a useful financial measure to

investors and how Company management uses this financial measure.


                           VALUECLICK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three-month Period
Ended March 31,
2008 2007
--------- --------
(Unaudited)
(Note 1)
Revenue $176,034 $156,924
Cost of revenue 55,113 47,047
--------- --------
Gross profit 120,921 109,877
Operating expenses:
Sales and marketing (Note 2) 51,701 48,452
General and administrative (Note 2) 21,654 17,541
Technology (Note 2) 9,963 8,927
Amortization of intangible assets 7,760 5,771
--------- --------
Total operating expenses 91,078 80,691
--------- --------
Income from operations 29,843 29,186
Interest and other income, net 3,051 2,939
--------- --------
Income before income taxes 32,894 32,125
Income tax expense 13,727 13,491
--------- --------
Net income $ 19,167 $ 18,634
========= ========
Basic net income per common share $ 0.20 $ 0.19
========= ========
Weighted-average shares used to compute basic net
income per
common share 97,722 99,562
========= ========
Diluted net income per common share $ 0.19 $ 0.18
========= ========
Weighted-average shares used to compute diluted net
income per
common share 98,557 101,036
========= ========

Note 1 - The condensed consolidated statements of operations

include the results of MeziMedia from the acquisition consummation

date (July 30, 2007). Had this transaction been completed as of

January 1, 2007, on an unaudited pro forma basis, revenue would have

been $176.1 million, and net income would have been $20.0 million, or

$0.20 per diluted common share, for the three-month period ended March

31, 2007. These unaudited pro forma results are for information

purposes only, are not necessarily indicative of what the actual

results would have been had these transactions occurred on January 1,

2007, and are not necessarily indicative of future results.


Note 2 - Includes stock-based compensation as       Three-month Period
follows: Ended March 31,
------------------
2008 2007
----------- ------
(Unaudited)
Sales and marketing $1,682 $1,028
General and administrative 3,456 2,084
Technology 651 526
----------- ------
Total stock-based compensation $5,789 $3,638
=========== ======

                           VALUECLICK, INC.
RECONCILIATION OF NET INCOME TO ADJUSTED-EBITDA (Note 1)
(In thousands)
Three-month Period
Ended March 31,
------------------
2008 2007
--------- --------
(Unaudited)
Net income $19,167 $18,634
Less interest and other income, net (3,051) (2,939)
Plus provision for income taxes 13,727 13,491
Plus amortization of intangible assets 7,760 5,771
Plus depreciation and leasehold amortization 2,574 2,434
Plus stock-based compensation 5,789 3,638
--------- --------
Adjusted-EBITDA $45,966 $41,029
========= ========

Note 1 - "Adjusted-EBITDA" (earnings before interest and other

income, income taxes, depreciation, amortization, and stock-based

compensation) included in this press release is a non-GAAP financial

measure.


Adjusted-EBITDA, as defined above, may not be similar to

adjusted-EBITDA measures used by other companies and is not a

measurement under GAAP. Management believes that adjusted-EBITDA

provides useful information to investors about the Company's

performance because it eliminates the effects of period-to-period

changes in income from interest on the Company's cash and marketable

securities and the costs associated with income tax expense,

amortization of intangible assets acquired in business combinations,

capital investments, and stock-based compensation expense. Management

uses adjusted-EBITDA in evaluating the overall performance of the

Company's business operations.


Though management finds adjusted-EBITDA useful for evaluating

aspects of the Company's business, its reliance on this measure is

limited because excluded items often have a material effect on the

Company's earnings and earnings per common share calculated in

accordance with GAAP. Therefore, management uses adjusted-EBITDA in

conjunction with GAAP earnings and earnings per common share measures.

The Company believes that adjusted-EBITDA provides investors with an

additional tool for evaluating the Company's core performance, which

management uses in its own evaluation of overall performance, and a

baseline for assessing the future earnings potential of the Company.

While the GAAP results are more complete, the Company prefers to allow

investors to have this supplemental metric since, with a

reconciliation to GAAP, it may provide greater insight into the

Company's financial results.


                           VALUECLICK, INC.
SEGMENT OPERATING RESULTS
(In thousands)
Three-month Period Ended
March 31,
------------------------
2008 2007
-------------- ---------
(Unaudited)
Media:
Revenue $ 79,353 $108,422
Cost of revenue 36,483 38,532
-------------- ---------
Gross profit 42,870 69,890
Operating expenses 26,869 44,096
-------------- ---------
Segment income from operations $ 16,001 $ 25,794
============== =========
Comparison Shopping:
Revenue $ 53,001 $ 8,617
Cost of revenue 11,060 1,349
-------------- ---------
Gross profit 41,941 7,268
Operating expenses 27,264 6,725
-------------- ---------
Segment income from operations $ 14,677 $ 543
============== =========
Affiliate Marketing:
Revenue $ 35,367 $ 32,798
Cost of revenue 7,022 5,958
-------------- ---------
Gross profit 28,345 26,840
Operating expenses 12,103 9,889
-------------- ---------
Segment income from operations $ 16,242 $ 16,951
============== =========
Technology:
Revenue $ 9,278 $ 7,470
Cost of revenue 1,407 1,452
-------------- ---------
Gross profit 7,871 6,018
Operating expenses 4,094 3,439
-------------- ---------
Segment income from operations $ 3,777 $ 2,579
============== =========
Total segment income from operations $ 50,697 $ 45,867
Corporate expenses (7,305) (7,272)
Stock-based compensation (5,789) (3,638)
Amortization of intangible assets (7,760) (5,771)
-------------- ---------
Consolidated income from operations $ 29,843 $ 29,186
============== =========
Reconciliation of segment revenue to
consolidated revenue:
Media $ 79,353 $108,422
Comparison Shopping 53,001 8,617
Affiliate Marketing 35,367 32,798
Technology 9,278 7,470
Inter-segment eliminations (965) (383)
-------------- ---------
Consolidated revenue $176,034 $156,924
============== =========

                           VALUECLICK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2008 2007
--------- ------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 97,860 $ 82,767
Marketable securities, at fair value 66,351 170,691
Accounts receivable, net 118,159 126,605
Other current assets 16,019 18,785
--------- ------------
Total current assets 298,389 398,848
Marketable securities, less current portion 30,844 34,059
Property and equipment, net 18,484 19,357
Goodwill 440,852 439,532
Intangible assets, net 105,923 112,979
Other assets 8,752 6,247
--------- ------------
TOTAL ASSETS $903,244 $1,011,022
========= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $122,392 $ 219,199
Non-current liabilities 83,371 81,890
--------- ------------
Total liabilities 205,763 301,089
Total stockholders' equity 697,481 709,933
--------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $903,244 $1,011,022
========= ============

SOURCE: ValueClick, Inc.


ValueClick, Inc.
Gary J. Fuges, CFA
818-575-4677