Investor Relations Overview. May 24, 2006

Transcription

1 Investor Relations Overview May 24, 2006

2 Safe Harbor This presentation contains forward-looking statements that involve risks and uncertainties, including, but not limited to, ValueClick s ability to successfully integrate its recently completed Fastclick and Webclients mergers, trends in online advertising spending and estimates of future online performance-based advertising. 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: its Annual Report on Form 10-K filed on March 31, 2006 and amendment to its Annual Report on Form 10-K/A filed on April 21, 2006; its current report on Form 8-K filed on February 27, 2006; recent quarterly reports on Form 10-Q and Form 10-Q/A, other current reports on Form 8-K; its amended registration statement on Form S-4, filed on September 27, 2005; and its final prospectus on Form 424B3 filed on September 28, Other factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include, but are not limited to, the risk that market demand for online advertising, and performance-based online advertising in particular, will not grow as rapidly as predicted. Any forward-looking statements speak only as of the date hereof and 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. 2

3 Agenda ValueClick Overview Industry Opportunity Review of ValueClick Businesses Financial Overview & Outlook 3

4 ValueClick Overview Diversified, large-scale online marketing services provider Solution set that generates targeted traffic, leads, sales & brand lift for advertisers & agencies 2006(E) revenue of $495-$505 million; organic growth of 22-24% Leadership positions in key online advertising areas Leading Media network with solutions across all pricing models (CPM, CPC, CPL, CPA) Global leader in Affiliate Marketing to enable sales and customer acquisition programs Leading European comparison shopping site: Leading publisher network manager: quality, targeted traffic for advertiser offers Technology for publisher inventory aggregation & optimization; campaign management Can monetize all standard ad units; leading publisher tools for control/transparency Trusted third-party monetization partner 4

5 Network-Driven Marketing Solutions Network Tech & Expertise Aggregate Traffic/Inventory Optimize Inventory Track/Manage Campaigns 50,000+ Publisher Partners 6,000+ Advertisers/Agency Clients Content Sites* Loyalty & Coupon Sites Opt-In * & Newsletters Promo./Vertical Sites* Search Affiliates Goal- Monetize Traffic/Inventory Goals- Targeted reach to generate: Brand Lift & Consumer Traffic Qualified Customer Leads Sales & Customer Acquisition Leading Monetization Partner: Sales Force/6,000 Advertisers *ValueClick-Owned Sites: Breadth: All Ad Units Leading Optimization Tech Transparency & Control 5

6 VCLK Media Reach Source: comscore Media Metrix Inside the Ratings, Mar Verizon MySpace.com NYTimes Digital Amazon Sites Ask Network Millions of Unique Users per Mo. Yahoo! Sites Time Warner Network VCLK Media MSN-MSFT Sites Google Sites ebay

7 US Online Ad Spend $30 Positive Trends: 25% Growth in 2006(E); Market Doubles (E) $28.5 $25.5 $21.9 US Online Ad Spend, $ Billions $20 $10 $9.6 $12.5 $15.6 $18.6 $7.3 $ E 2007E 2008E 2009E 2010E Source: emarketer, March

8 US Online Ad Spend 7% Industry Growth Fueled by Measured Online Advertising Share Gains 6.5% 6% 6.1% US Online Ad Spend, % of Ttl Ad Spend 5% 4% 3.6% 4.5% 5.2% 5.7% 3% 3.0% 2% E 2006E 2007E 2008E 2009E Source: emarketer, Mar

9 Revenue by Products 2006(E) Revenue: $ million* Media: CPM Campaigns CPC Campaigns CPL & CPA Campaigns Comp.-Shopping $105 million Affiliate Marketing Customer Acquisition Online Sales $27 million $368 million Technology: Ad Serving Agency Mgt. * ValueClick guidance as of May 8,

10 Media Direct Marketing: Advertisers & agencies pay for impressions, clicks and leads generated by campaigns run ValueClick s Media network, owned sites & opt-in . How we make money Comp.-Shopping: Merchants pay for traffic delivered from PriceRunner.com to their sites. Brand Marketing: Advertisers & agencies pay for impressions for targeted brand ad campaigns run on our Media network. Campaigns utilize market research to measure brand lift of campaign. Est. Mkt. Size $12.5 billion Competition Competition: Off-line Media Channels Peers: Yahoo, MSN, AOL Prod. Revenue 2003: $41mm 2004: $79mm 2005: $193mm 2006(E): $368mm * ValueClick guidance as of May 8,

11 Affiliate Marketing ValueClick aggregates online publishers into an affiliate marketing network & manages the network to develop, maintain & optimize the advertisers relationships with publishers. How we make money Advertisers pay their affiliate publishers for traffic only when it converts to a sale or customer acquisition. (Fully-commissioned online sales force for advertiser) Advertisers pay ValueClick based on sales commission and customer acquisition bounty payments to publishers. (Net rev. model; publisher payments not included in Aff. Mkt. rev.) ASP Model: Tech-based services include affiliate recruitment, traffic and commission tracking and reporting, affiliate payments, and program management Est. Mkt. Size $500 million Competition Linkshare, Performics; TradeDoubler Prod. Revenue* 2003: $26mm 2004: $64mm 2005: $84mm 2006(E): $105mm * Includes international revenue. ValueClick guidance as of May 8,

12 Technology Online Ad/ Platform: Advertisers, ad agencies & website publishers pay us for ad serving, tech. & reporting tools How we make money ASP Model: Pricing is CPM-based, plus consulting & implementation fees Agency Mgt. Platform: Ad agencies & advertisers pay us for web-based financial mgt., offline media planning & buying, and content mgt. systems ASP Model: Fees are based on gross agency billings, plus consulting & implementation fees Est. Mkt. Size Online Ad/ $250 million Agency Mgt: $200 million Competition Online Ad/ Doubleclick, Atlas; 24/7 Agency Mgt.: Dononvan Data Systems Prod. Revenue* 2003: $26mm 2004: $26mm 2005: $27mm 2006(E): $27mm * Includes international revenue. ValueClick guidance as of May 8,

13 Revenue Trend* 500 $495-$505 $ Millions $ $169 $92 $ (E) * ValueClick 2006 guidance as of May 8,

14 Adjusted-EBITDA Trend * 150 $128-$ $86 $ Millions $47 25 $15 0 ($2) ** (E) * EBITDA excluding stock-based compensation; ValueClick guidance as of May 8, ** Excludes 1Q 2004 $8.0 million non-recurring gain from the sale of interest in ValueClick Japan. 14

15 Net Cash & Investments $300 Major Cash Initiatives: $76 million for share repurchase program $40 million for 2003 acquisitions $25 million for Aug PriceRunner acquisition $137 million for June 2005 acquisitions Current Stock Repurchase Authority: $119 million $260 $233 $220 $243 $241 $200 $100 $- Dec Dec Dec Dec Mar

16 Operating Model Targets (1) FY 2005 Pro-Forma FY 2005 FY 2006(E) Revenue $304mm $407mm $ mm Gross Margin 71% 66% 67% Operating Exp., % of Rev. (2) 49% 48% 47% Adjusted-EBITDA Margin (2) 28% 25% 26% (1) ValueClick guidance as of May 8, (2) Excludes stock-based compensation. 16

17 Looking Ahead Drive synergy opportunities within Media Continue PriceRunner and Affiliate Marketing product expansion Execute stock buy-back program Continue to look for strategic U.S. and international M&A opportunities: Comparison Shopping Affiliate Marketing Media 17

18 Investor Relations Overview This presentation is available on the IR section of Contact: Gary J. Fuges,