Acquisitions Aid aQuantive: Fool by Numbers

Earlier today, digital marketing expert and Rule Breakers recommendation aQuantive (Nasdaq: AQNT  ) released earnings for the first quarter ended March 31.

  • Like Google (Nasdaq: GOOG  ) , which spent $3.1 billion for ad specialist DoubleClick, aQuantive is acquisitive by nature, completing five acquisitions in 2006 and another, French marketing agency Duke, in March. Yet aQuantive managed 42% organic revenue growth in Q1.
  • Owner earnings also look impressive. aQuantive booked $15.6 million in OE during the quarter and, if full-year revenue guidance of $595 million to $615 million holds up, could generate as much as $81 million in 2007 owner earnings.
  • That would be a major improvement over last year's $58 million and could help explain why the 227 amateur and professional investors tracking aQuantive in Motley Fool CAPS give the stock four out of five stars.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$142,621

$92,185

54.7%

Net Profit

$14,242

$7,615

87.0%

EPS

$0.16

$0.10

60.0%

Diluted Shares

89,062

80,010

11.3%

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

83.46%

85.49%

(2.03)

Operating Margin

13.95%

12.10%

1.85

Net Margin

9.99%

8.26%

1.73

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$296,711

$270,975

9.5%

Accounts Rec.

$270,462

$175,412

54.2%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$232,720

$94,659

145.9%

Long-Term Debt

$80,000

$80,000

0.0%

The balance sheet reflects the company's health.

Cash Flow Checkup
No cash flow statement provided. (Whatever.)

Free cash flow is a Fool's best friend.

Related Foolishness:

aQuantive is a Motley Fool Rule Breakers pick. David Gardner and his team of analysts have unearthed four stocks that have more than doubled in the first two years of this market-beating service. Want to find out their names? Click here to test-drive Rule Breakers for 30 days. There's no obligation to subscribe.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Tim Beyers, who is ranked 6,444 out of more than 28,400 rated players in CAPS, owned shares of aQuantive at the time of publication. All of his portfolio holdings can be found at Tim's Fool profile. His thoughts on Foolishness and investing may be found in his blog. The Motley Fool's disclosure policy always adds up.


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