However, Churchill Downs also wants to see what works and does not work on the site. So, the company has implemented WebSideStory's
And the success is resulting in strong growth for WebSideStory. This week, the company released its earnings report. In the first quarter, revenues hit $6.9 million, a 38% increase from the same period in 2004. In fact, for the sixth straight quarter, the company posted a net profit. In the first quarter, net income was $1 million, a 700% increase from the 2004 quarter.
In the quarter, WebSideStory snagged new deals with biggies such as Knight Ridder
In light of this success, WebSideStory upped its guidance. For the second quarter, the company expects revenues of $9.2 million to $9.4 million, with earnings per share of $0.06 to $0.07. For comparative purposes, revenue guidance without the Atomz acquisition added to earnings would have fallen between $7.8 million and $7.9 million, representing 49% growth from the same period last year.
And the growth is likely to continue. After all, the online advertising industry is growing in excess of 30% per year -- and still only constitutes 5% of overall advertising spending. Industry bellwethers Yahoo!
Fool contributor Tom Taulli does not own shares mentioned in this article.