NEW YORK – interCLICK, Inc. (the “Company”) (OTCBB: ICLK), one of the largest advertising networks in the U.S., provided an update on its business outlook for its fourth quarter ending December 31, 2008. The Company now expects revenue for the fourth quarter to exceed $7 million, compared to its previous forecast for revenue to exceed $6.5 million. The Company also anticipates that 4Q08 gross margin will exceed 35%. Previously, interCLICK estimated that gross margin would exceed 31%.
In addition, interCLICK announced that it expects for the fourth quarter to report its first quarter of positive Adjusted EBITDA* since becoming a public company.
“A number of top-tier brands in the retail sector are employing interCLICK’s behavioral targeting platform to reach their target consumers during the holiday peak buying period,” said Michael Mathews, interCLICK’s Chief Executive Officer. “The effectiveness of interCLICK’s behavioral targeting platform led to significant return on ad spend for these retail clients, prompting them to increase their spending — a factor accounting for our higher revenue guidance.”
“The interCLICK team is proud of reaching the point where sustained revenue growth has resulted in generating profits on an Adjusted EBIDTA basis, a meaningful achievement in a difficult economic environment,” said Mathews.
The substantial increase in 4Q08 gross margin guidance from better than 31% to better than 35% reflects gains in interCLICK’s supply chain management capabilities.
The Company now expects full year 2008 revenue to exceed $21 million, compared to its previous forecast for revenue to exceed $20 million.
*Adjusted EBITDA excludes one-time, non-recurring compensation expenses and stock-based compensation expenses (see “Use of Non-GAAP Measures” below).
Use of Non-GAAP Measures
interCLICK, Inc. provides non-GAAP financial information to assist investors in assessing the current performance of its core cash operations in the same manner that interCLICK’s management evaluates these operations. Non-GAAP Adjusted EBITDA is a supplemental measure of interCLICK’s performance that is not required by, and is not presented in accordance with, generally accepted accounting principles (GAAP). The non-GAAP information does not substitute for any performance measure derived in accordance with GAAP. interCLICK, Inc. believes that this non-GAAP information provides useful information to investors by excluding the effect of non-cash expenses and other one-time compensation expenses that are required to be recorded under GAAP.
interCLICK, Inc., operates the interCLICK Network, an online ad network that combines advanced behavioral targeting with site by site reporting, allowing advertisers to identify and track their desired audience on an unprecedented level. interCLICK offers advanced proprietary demographic, behavioral, contextual, geographic and retargeting technologies across a network of name brand publishers to ensure the right message is delivered to a precise audience in a brand friendly environment. For more information about the interCLICK Network, visit http://www.interclick.com.