On 24/7 Real Media's
As seen in the first quarter, 24/7 Real Media is enjoying the complexity. Revenues increased 48% over the past year to $42.9 million. Keep in mind that the company has not made any significant acquisitions during this time. In other words, 24/7 Real Media is seeing robust organic growth. What's more, the performance came during a traditionally weak part of the year.
The company did sustain a loss of $0.16 per share, which compares to a $0.01 per-share loss in the same period a year ago. But as is the case with many tech companies, 24/7 Real Media is now expensing its stock options. Looking at pro forma operating income, the company posted $3.6 million, which is a $0.04 gain over the comparable period.
24/7 Real Media has three key lines of business. The media division helps clients develop campaigns and target the right messages across a network of more than 850 publishers. Next, the search division allows clients to manage their paid search campaigns, such as crafting advertising messages, bidding on search engines -- such as Yahoo!
Finally, the technology division licenses 24/7's technology to sales organizations that want to manage their own campaigns.
Something else that's critical: Advertisers want a global footprint. And that's what 24/7 Real Media offers, with operations in Europe and the Pacific Rim.
So far, it looks like the surge in online advertising will continue to grow at a rapid clip, and the growth is ramping up overseas. With its strong platform, 24/7 Real Media is poised to continue its growth. It raised its full-year guidance for 2006 to $190 million to $200 million in revenue and pro forma operating income at $0.35 to $0.36. Yes, raising guidance seems to be a nice habit for this company, or any company for that matter, to develop.
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Fool contributor Tom Taulli does not own shares mentioned in this article.
