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ValueClick announces second quarter 2008 results

ValueClick Announces Second Quarter 2008 Results

ValueClick Announces Second Quarter 2008 Results


WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--July 31,

2008--ValueClick, Inc. (Nasdaq: VCLK) today reported financial results

for the second quarter ended June 30, 2008.


  • Revenue of $163.8 million was one percent below the low end of

    the $166 to $170 million guidance range issued on May 6, and

    within the $163 to $164 million range provided in the

    Company's July 17 preliminary results press release;

  • Adjusted-EBITDA(1) of $43.5 million was above the $40 to $42

    million guidance range issued on May 6; and

  • Diluted net income per common share of $0.17 was above the

    high end of the $0.15 to $0.16 guidance range issued on May 6.

"While increased macroeconomic uncertainty makes revenue growth

more challenging for the second half of the year, we are taking

meaningful steps to preserve margins and drive long-term growth and

shareholder value," said Tom Vadnais, chief executive officer of

ValueClick. "We are accelerating initiatives to increase synergies

among our businesses, and we have been active in our stock repurchase

program since our July 17 pre-announcement. We believe ValueClick's

long-term prospects are bright, and we are committing resources to

realize the opportunities in front of us while driving bottom line

results."


Second Quarter 2008 Results


Revenue for the second quarter of 2008 was $163.8 million, an

increase of $15.2 million, or 10 percent, from $148.7 million for the

second quarter of 2007. Second quarter 2008 results include three

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


Income before income taxes for the second quarter of 2008 was

$29.3 million compared to $29.4 million for the second quarter of

2007. Amortization of intangible assets increased to $7.8 million for

the second quarter of 2008 from $5.5 million for the second quarter of

2007, primarily due to the impact of the MeziMedia acquisition.

Adjusted-EBITDA for the second quarter of 2008 was $43.5 million, an

increase of 12 percent compared to $38.8 million for the second

quarter of 2007.


Net income for the second quarter of 2008 was $16.5 million, or

$0.17 per diluted common share, compared to $17.6 million, or $0.17

per diluted common share, for the second quarter of 2007.


The consolidated balance sheet as of June 30, 2008 includes $191

million in cash, cash equivalents and marketable securities, $706

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. Year-to-date through July 30, the Company has repurchased

approximately 10.6 million shares for $134.2 million, including 7.4

million shares repurchased for $79.5 million since the Company's July

17 announcement of preliminary results for the second quarter of 2008

and revised fiscal year 2008 guidance. As of July 30, up to $21.8

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.


ValueClick is reiterating the fiscal year 2008 guidance ranges,

issued previously on July 17, 2008. The fiscal year 2008 guidance is

as follows:


Fiscal Year 2008                                         Guidance
----------------------------------------------------------------------
Revenue $655-$675 million
----------------------------------------------------------------------
Adjusted-EBITDA $172-$176 million
----------------------------------------------------------------------
Adjusted-EBITDA Margin at Mid-Point of Guidance
Ranges 26.2%
----------------------------------------------------------------------
Diluted net income per common share $0.69-$0.71
----------------------------------------------------------------------

Fiscal year 2008 diluted net income per common share guidance

includes the impact of approximately $0.15 per diluted common share

for stock-based compensation expense and assumes a 42.5 percent

effective tax rate.


The mid-point of updated fiscal year 2008 revenue guidance

reflects the following year-over-year revenue growth rates per

segment:


Fiscal Year 2008 Revenue Guidance by          Year-Over-Year Growth
Segment
----------------------------------------------------------------------
Affiliate Marketing(2) (excludes Search123) +8%
----------------------------------------------------------------------
Comparison Shopping and Search (includes +19% pro-forma
Search123)
----------------------------------------------------------------------
Technology +18%
----------------------------------------------------------------------
Media, Total -18%
Display advertising Low single digit increase
Lead generation High 20% decrease
----------------------------------------------------------------------

Additionally, ValueClick is announcing guidance for the third

quarter of 2008:


Third Quarter 2008                                       Guidance
----------------------------------------------------------------------
Revenue $150-$156 million
----------------------------------------------------------------------
Adjusted-EBITDA $37-$40 million
----------------------------------------------------------------------
Diluted net income per common share $0.14-$0.15
----------------------------------------------------------------------

Third quarter 2008 guidance for diluted net income per common

share includes a reduction of $0.04 per diluted common share for

stock-based compensation expense and assumes a 42.5 percent net

effective income tax rate.


Conference Call Today at 4:30 p.m. ET


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 second

quarter during a conference call and webcast on July 31, 2008 at

4:30PM ET. Investors and analysts may obtain the dial-in information

through StreetEvents (www.streetevents.com).


The live Webcast of the conference call will be available on the

Investor Relations section of www.valueclick.com. A replay of the

conference call will be available through August 7 at (888) 203-1112

and (719) 457-0820 (pass code: 1770349). An archive of the Webcast

will also be available through August 7.


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, 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.


(2) The Company announced on a May 6, 2008 conference call that,

starting with second quarter 2008 financial results, it would

reclassify the Search123 business from the Affiliate Marketing segment

to the Comparison Shopping segment, and rename the Comparison Shopping

segment "Comparison Shopping and Search." Search123 generated

approximately $21 million in revenue in 2007, and updated guidance

anticipates 2008 revenue for Search123 of approximately $17 million.


                           VALUECLICK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2008 2007
-------- ------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $101,274 $ 82,767
Marketable securities 59,478 170,691
Accounts receivable, net 111,739 126,605
Other current assets 27,902 18,785
-------- ------------
Total current assets 300,393 398,848
Marketable securities, less current portion 30,350 34,059
Property and equipment, net 19,000 19,357
Goodwill 440,764 439,532
Intangible assets, net 98,090 112,979
Other assets 11,305 6,247
-------- ------------
TOTAL ASSETS $899,902 $ 1,011,022
======== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $111,989 $ 219,199
Non-current liabilities 81,446 81,890
-------- ------------
Total liabilities 193,435 301,089
Total stockholders' equity 706,467 709,933
-------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $899,902 $ 1,011,022
======== ============
                           VALUECLICK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three-month Period
Ended June 30,
------------------
2008 2007
------------------
(Unaudited)
(Note 1)
Revenue $ 163,831 $148,676
Cost of revenue 51,702 49,057
--------- --------
Gross profit 112,129 99,619
Operating expenses:
Sales and marketing (Note 2) 46,097 42,194
General and administrative (Note 2) 20,222 17,200
Technology (Note 2) 10,164 8,735
Amortization of intangible assets acquired in
business combinations 7,779 5,470
--------- --------
Total operating expenses 84,262 73,599
--------- --------
Income from operations 27,867 26,020
Interest income and other, net 1,413 3,375
--------- --------
Income before income taxes 29,280 29,395
Income tax expense 12,791 11,767
--------- --------
Net income $ 16,489 $ 17,628
========= ========
Basic net income per common share $ 0.17 $ 0.18
========= ========
Weighted-average shares used to compute basic net
income per common share 95,363 100,038
========= ========
Diluted net income per common share $ 0.17 $ 0.17
========= ========
Weighted-average shares used to compute diluted net
income per common share 96,133 101,623
========= ========
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 $166.0
million, and net income would have been $18.3 million, or $0.18 per
diluted common share, for the three-month period ended June 30, 2007.
These unaudited pro forma results are for information purposes only,
are not necessarily indicative of what the actual results would have
been had this transaction occurred on January 1, 2007, and are not
necessarily indicative of future results.
Note 2 - Includes stock-based compensation expense Three-month Period
as follows: Ended June 30,
------------------
2008 2007
--------- --------
(Unaudited)
Sales and marketing $ 1,716 $ 1,296
General and administrative 2,947 2,981
Technology 665 643
--------- --------
Total stock-based compensation expense $ 5,328 $ 4,920
========= ========
                           VALUECLICK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Six-month Period
Ended June 30,
-----------------
2008 2007
-----------------
(Unaudited)
(Note 1)
Revenue $339,865 $305,600
Cost of revenue 106,815 96,104
-------- --------
Gross profit 233,050 209,496
Operating expenses:
Sales and marketing (Note 2) 97,798 90,646
General and administrative (Note 2) 41,876 34,741
Technology (Note 2) 20,127 17,662
Amortization of intangible assets acquired in
business combinations 15,539 11,241
-------- --------
Total operating expenses 175,340 154,290
-------- --------
Income from operations 57,710 55,206
Interest income and other, net 4,464 6,314
-------- --------
Income before income taxes 62,174 61,520
Income tax expense 26,518 25,258
-------- --------
Net income $ 35,656 $ 36,262
======== ========
Basic net income per common share $ 0.37 $ 0.36
======== ========
Weighted-average shares used to compute basic net
income per common share 96,543 99,801
======== ========
Diluted net income per common share $ 0.37 $ 0.36
======== ========
Weighted-average shares used to compute diluted net
income per common share 97,345 101,331
======== ========
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 $342.2
million, and net income would have been $38.3 million, or $0.38 per
diluted common share, for the six-month period ended June 30, 2007.
These unaudited pro forma results are for information purposes only,
are not necessarily indicative of what the actual results would have
been had this transaction occurred on January 1, 2007, and are not
necessarily indicative of future results.
Note 2 - Includes stock-based compensation expense Six-month Period
as follows: Ended June 30,
-----------------
2008 2007
-------- --------
(Unaudited)
Sales and marketing $ 3,398 $ 2,324
General and administrative 6,403 5,065
Technology 1,316 1,169
-------- --------
Total stock-based compensation expense $ 11,117 $ 8,558
======== ========
                           VALUECLICK, INC.
RECONCILIATION OF NET INCOME TO ADJUSTED-EBITDA (Note 1)
(In thousands)
Three-month Period
Ended June 30,
------------------
2008 2007
--------- --------
(Unaudited)
Net income $ 16,489 $17,628
Less interest income and other, net (1,413) (3,375)
Plus provision for income taxes 12,791 11,767
Plus amortization of intangible assets
acquired in business combinations 7,779 5,470
Plus depreciation and leasehold amortization 2,552 2,343
Plus stock-based compensation 5,328 4,920
--------- --------
Adjusted-EBITDA $ 43,526 $38,753
========= ========
Six-month Period
Ended June 30,
------------------
2008 2007
--------- --------
(Unaudited)
Net income $ 35,656 $36,262
Less interest income and other, net (4,464) (6,314)
Plus provision for income taxes 26,518 25,258
Plus amortization of intangible assets
acquired in business combinations 15,539 11,241
Plus depreciation and leasehold amortization 5,126 4,777
Plus stock-based compensation 11,117 8,558
--------- --------
Adjusted-EBITDA $ 89,492 $79,782
========= ========
Note 1 - "Adjusted-EBITDA" (earnings before interest, 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, capital investments, and
stock-based compensation expense which are not directly attributable
to the underlying performance of the Company's business operations.
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 always 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 base-line 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 Six-month Period Ended
June 30, June 30,
------------------------ ----------------------
2008 2007 2008 2007
-------------- --------- ------------ ---------
(Unaudited) (Unaudited)
Media:
Revenue $ 79,319 $100,937 $ 158,672 $209,359
Cost of revenue 34,527 39,885 71,010 78,417
-------------- --------- ------------ ---------
Gross profit 44,792 61,052 87,662 130,942
Operating expenses 26,427 37,072 53,296 81,168
-------------- --------- ------------ ---------
Segment income from
operations $ 18,365 $ 23,980 $ 34,366 $ 49,774
============== ========= ============ =========
Comparison Shopping
and Search:
Revenue $ 45,439 $ 13,383 $ 102,511 $ 26,602
Cost of revenue 11,800 5,269 25,587 9,630
-------------- --------- ------------ ---------
Gross profit 33,639 8,114 76,924 16,972
Operating expenses 23,145 6,344 51,229 13,634
-------------- --------- ------------ ---------
Segment income from
operations $ 10,494 $ 1,770 $ 25,695 $ 3,338
============== ========= ============ =========
Affiliate Marketing:
Revenue $ 29,827 $ 27,041 $ 61,027 $ 55,228
Cost of revenue 4,527 3,249 8,726 6,186
-------------- --------- ------------ ---------
Gross profit 25,300 23,792 52,301 49,042
Operating expenses 10,837 9,619 22,120 18,943
-------------- --------- ------------ ---------
Segment income from
operations $ 14,463 $ 14,173 $ 30,181 $ 30,099
============== ========= ============ =========
Technology:
Revenue $ 10,070 $ 7,768 $ 19,348 $ 15,238
Cost of revenue 1,515 1,434 2,922 2,886
-------------- --------- ------------ ---------
Gross profit 8,555 6,334 16,426 12,352
Operating expenses 4,068 3,410 8,162 6,849
-------------- --------- ------------ ---------
Segment income from
operations $ 4,487 $ 2,924 $ 8,264 $ 5,503
============== ========= ============ =========
Total segment income
from operations $ 47,809 $ 42,847 $ 98,506 $ 88,714
Corporate expenses (6,835) (6,437) (14,140) (13,709)
Stock-based
compensation (5,328) (4,920) (11,117) (8,558)
Amortization of
intangible assets (7,779) (5,470) (15,539) (11,241)
-------------- --------- ------------ ---------
Consolidated income
from operations $ 27,867 $ 26,020 $ 57,710 $ 55,206
============== ========= ============ =========
Reconciliation of
segment revenue to
consolidated revenue:
Media $ 79,319 $100,937 $ 158,672 $209,359
Comparison Shopping
and Search 45,439 13,383 102,511 26,602
Affiliate Marketing 29,827 27,041 61,027 55,228
Technology 10,070 7,768 19,348 15,238
Inter-segment
eliminations (824) (453) (1,693) (827)
-------------- --------- ------------ ---------
Consolidated revenue $ 163,831 $148,676 $ 339,865 $305,600
============== ========= ============ =========
                           VALUECLICK, INC.
SEGMENT OPERATING RESULTS (Note 1)
(Prior periods restated for the reclassification of Search123 from the
Affiliate Marketing segment and into the Comparison Shopping segment
in the second quarter of 2008. Amounts in thousands)
Three-month Period Ended
----------------------------------------------
March 31, June 30, September 30, December 31,
2006 2006 2006 2006
--------- --------- ------------- ------------
(Unaudited)
Media:
Revenue $ 79,385 $ 93,542 $ 98,399 $ 111,647
Cost of revenue 33,736 36,240 31,718 39,763
--------- --------- ------------- ------------
Gross profit 45,649 57,302 66,681 71,884
Operating expenses 27,054 34,416 42,296 43,557
--------- --------- ------------- ------------
Segment income from
operations $ 18,595 $ 22,886 $ 24,385 $ 28,327
========= ========= ============= ============
Comparison Shopping and
Search:
Revenue $ 7,804 $ 8,769 $ 9,669 $ 13,523
Cost of revenue 1,871 2,323 3,049 4,013
--------- --------- ------------- ------------
Gross profit 5,933 6,446 6,620 9,510
Operating expenses 5,917 5,526 5,304 6,460
--------- --------- ------------- ------------
Segment income from
operations $ 16 $ 920 $ 1,316 $ 3,050
========= ========= ============= ============
Affiliate Marketing:
Revenue $ 24,604 $ 22,325 $ 23,598 $ 28,042
Cost of revenue 2,533 2,451 2,737 2,925
--------- --------- ------------- ------------
Gross profit 22,071 19,874 20,861 25,117
Operating expenses 8,319 7,664 8,474 7,786
--------- --------- ------------- ------------
Segment income from
operations $ 13,752 $ 12,210 $ 12,387 $ 17,331
========= ========= ============= ============
Technology:
Revenue $ 5,775 $ 5,728 $ 6,525 $ 7,686
Cost of revenue 1,325 1,325 1,374 1,372
--------- --------- ------------- ------------
Gross profit 4,450 4,403 5,151 6,314
Operating expenses 3,082 3,130 3,245 3,239
--------- --------- ------------- ------------
Segment income from
operations $ 1,368 $ 1,273 $ 1,906 $ 3,075
========= ========= ============= ============
Total segment income
from operations $ 33,731 $ 37,289 $ 39,994 $ 51,783
Corporate expenses (8,612) (3,476) (6,743) (8,101)
Stock-based
compensation (3,320) (3,196) (2,992) (2,432)
Amortization of
intangible assets (5,655) (5,450) (5,462) (5,234)
--------- --------- ------------- ------------
Consolidated income
from operations $ 16,144 $ 25,167 $ 24,797 $ 36,016
========= ========= ============= ============

Reconciliation of
segment revenue to
consolidated revenue:
Media $ 79,385 $ 93,542 $ 98,399 $ 111,647
Comparison Shopping and
Search 7,804 8,769 9,669 13,523
Affiliate Marketing 24,604 22,325 23,598 28,042
Technology 5,775 5,728 6,525 7,686
Inter-segment
eliminations (281) (336) (326) (462)
--------- --------- ------------- ------------
Consolidated revenue $117,287 $130,028 $ 137,865 $ 160,436
========= ========= ============= ============
Note 1 - Starting with second quarter 2008 results, ValueClick has
reclassified its Search123 business from the Affiliate Marketing
segment and into the Comparison Shopping segment, and renamed the
Comparison Shopping segment "Comparison Shopping and Search." For
comparative information purposes, the Company has included
reclassified historical segment financial performance.
                           VALUECLICK, INC.
SEGMENT OPERATING RESULTS (Note 1)
(Prior periods restated for the reclassification of Search123 from the
Affiliate Marketing segment and into the Comparison Shopping segment
in the second quarter of 2008. Amounts in thousands)
Three-month Period Ended
----------------------------------------------
March 31, June 30, September 30, December 31,
2007 2007 2007 2007
--------- --------- ------------- ------------
(Unaudited)
Media:
Revenue $108,422 $100,937 $ 85,602 $ 91,774
Cost of revenue 38,532 39,885 35,130 41,220
--------- --------- ------------- ------------
Gross profit 69,890 61,052 50,472 50,554
Operating expenses 44,096 37,072 33,269 30,957
--------- --------- ------------- ------------
Segment income from
operations $ 25,794 $ 23,980 $ 17,203 $ 19,597
========= ========= ============= ============
Comparison Shopping and
Search:
Revenue $ 13,219 $ 13,383 $ 35,703 $ 50,401
Cost of revenue 4,361 5,269 11,363 12,702
--------- --------- ------------- ------------
Gross profit 8,858 8,114 24,340 37,699
Operating expenses 7,290 6,344 16,129 26,741
--------- --------- ------------- ------------
Segment income from
operations $ 1,568 $ 1,770 $ 8,211 $ 10,958
========= ========= ============= ============
Affiliate Marketing:
Revenue $ 28,187 $ 27,041 $ 27,836 $ 32,913
Cost of revenue 2,937 3,249 3,115 3,677
--------- --------- ------------- ------------
Gross profit 25,250 23,792 24,721 29,236
Operating expenses 9,324 9,619 10,208 10,647
--------- --------- ------------- ------------
Segment income from
operations $ 15,926 $ 14,173 $ 14,513 $ 18,589
========= ========= ============= ============
Technology:
Revenue $ 7,470 $ 7,768 $ 8,215 $ 9,085
Cost of revenue 1,452 1,434 1,393 1,486
--------- --------- ------------- ------------
Gross profit 6,018 6,334 6,822 7,599
Operating expenses 3,439 3,410 3,388 3,902
--------- --------- ------------- ------------
Segment income from
operations $ 2,579 $ 2,924 $ 3,434 $ 3,697
========= ========= ============= ============
Total segment income
from operations $ 45,867 $ 42,847 $ 43,361 $ 52,841
Corporate expenses (7,272) (6,437) (5,714) (10,865)
Stock-based
compensation (3,638) (4,920) (4,594) (5,335)
Amortization of
intangible assets (5,771) (5,470) (6,726) (7,982)
--------- --------- ------------- ------------
Consolidated income
from operations $ 29,186 $ 26,020 $ 26,327 $ 28,659
========= ========= ============= ============

Reconciliation of
segment revenue to
consolidated revenue:
Media $108,422 $100,937 $ 85,602 $ 91,774
Comparison Shopping and
Search 13,219 13,383 35,703 50,401
Affiliate Marketing 28,187 27,041 27,836 32,913
Technology 7,470 7,768 8,215 9,085
Inter-segment
eliminations (374) (453) (464) (1,049)
--------- --------- ------------- ------------
Consolidated revenue $156,924 $148,676 $ 156,892 $ 183,124
========= ========= ============= ============
Note 1 - Starting with second quarter 2008 results, ValueClick has
reclassified its Search123 business from the Affiliate Marketing
segment and into the Comparison Shopping segment, and renamed the
Comparison Shopping segment "Comparison Shopping and Search." For
comparative information purposes, the Company has included
reclassified historical segment financial performance.

CONTACT: ValueClick, Inc.


Gary J. Fuges, CFA, 1-818-575-4677



SOURCE: ValueClick, Inc.