DCLK Doubleclick (MM)

DoubleClick Raises Fourth Quarter & Full Year 2004 Outlook Higher than Expected Revenue from TechSolutions Drives Results NEW YORK, Jan. 6 /PRNewswire-FirstCall/ -- DoubleClick Inc. (NASDAQ:DCLK), the leading provider of data and technology solutions for marketers, advertising agencies and web publishers, today announced that it has revised guidance for the fourth quarter and full year 2004 in order to reflect better than anticipated revenue generation in the TechSolutions segment. The Company is also adjusting guidance to reflect a higher diluted share count as required under FASB EITF Issue No. 04-8. Company Raises Revenue Expectations Due to higher than projected revenue from its Performics, Ad Management, and Email products, DoubleClick now expects that fourth quarter revenue from its TechSolutions segment will be $6 million to $7 million higher than the mid-point of its previous guidance range. Data segment revenue is expected to be within a narrower range than indicated in the previous outlook. These figures are preliminary. The Company plans to report final fourth quarter and full year 2004 results on February 3, 2005. "This quarter we saw an increase in Ad Management volume from both existing customers and from large new customers coming on board," said Kevin Ryan, CEO, DoubleClick Inc. "In addition, our Search, Affiliate, and Email businesses all benefited from a strong holiday season." New GAAP Rules on Contingent Convertibles Under FASB EITF Issue No. 04-8, "The Effect of Contingently Convertible Instruments on Diluted Earnings per Share," DoubleClick's Zero Coupon Convertible Subordinated notes will be included in the calculation of diluted earnings per share regardless of whether any of the conversion contingencies have been met. The new EITF Issue is effective for reporting periods ending after December 15, 2004, subsequent to which date publicly traded companies must retroactively restate diluted earnings per share calculations for 2004 and prior year periods. Under the EITF issue, DoubleClick will treat its Zero Coupon Convertible Subordinated Notes, which have a conversion price of $13.12 per share, as though they had been converted into approximately 10.3 million shares beginning June 23, 2003. In this restatement, DoubleClick will treat its former 4.75% Subordinated Notes as though they had been converted into approximately 3.8 million shares from January 1, 2003 through July 24, 2003. No restatement will be necessary for periods prior to January 1, 2003, because the 4.75% Notes would have been anti-dilutive. Revised 2004 Outlook The Company now anticipates fourth quarter TechSolutions revenue of $54 million to $55 million, compared to the previous guidance range of $46 million to $50 million. Fourth quarter Data revenue is expected to range from $26 million to $27 million, versus the previous outlook of $25 million to $28 million. DoubleClick's overall 4Q04 top line is estimated to be $81 million to $82 million, compared to the previous guidance of $72 million to $77 million. DoubleClick expects full year 2004 TechSolutions revenue to be $193 million to $194 million, against the previous guidance range of $185 million to $190 million. 2004 Data revenue is expected to be between $104 million and $105 million, versus the previous outlook of $103 million to $106 million. Total Company revenue is expected to range from $298 million to $299 million, compared to the previous estimate of $290 million to $295 million. DoubleClick's gross margin is expected to be in the low 70's percent range for the quarter and year. The Company had previously anticipated full year gross margins in the high 60s to low 70s percent range, while the 4Q04 gross margin projection is unchanged. GAAP operating expenses are projected to be $50 million to $51 million for 4Q04, versus the previous guidance range of $50 million to $52 million. Full year GAAP operating expenses are expected to be approximately $190 million. The Company now anticipates GAAP EPS of between $0.06 and $0.07 and $0.24 and $0.25, respectively, for the quarter and year ending December 31, 2004. These estimates assume a reduction in EPS of approximately $0.01 for 4Q04 and $0.02 for FY04 due to the EITF change described above. DoubleClick's previous outlook for GAAP EPS was $0.01 to $0.04 for the fourth quarter of 2004 and $0.21 to $0.24 for the full year, exclusive of EITF Issue No. 04-8. Unusual items are not expected to have a material impact on the quarter's results. Fourth Quarter And Full Year 2004 Financial Results DoubleClick will be releasing its fourth quarter and full year 2004 results after market close on Thursday, February 3, 2005. At 5:00 p.m. EST on the same day, the Company will be hosting a conference call to discuss these results as well as to provide its preliminary first quarter and full year 2005 financial outlook. To listen to a live Webcast of the call, please go to http://ir.doubleclick.net/ 15 minutes prior to the planned start of the call to register, download, and install (at no cost) any necessary software. There will be a replay of the Webcast available beginning approximately one hour after it has ended at http://ir.doubleclick.net/. This replay will be available for 30 days thereafter. For dial-in information, please contact Investor Relations at (212) 683-0001. The Webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call at http://www.fulldisclosure.com/ or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via http://www.streetevents.com/. About DoubleClick DoubleClick is the leading provider of data and technology solutions for advertising agencies, marketers, and web publishers to plan, execute, and analyze their marketing programs. DoubleClick's marketing solutions help clients yield the highest return on their marketing dollar. DoubleClick Inc. has global headquarters in New York City and maintains 22 offices around the world. Note: This press release includes forward-looking statements, including earnings and revenue projections, plans, and the expected impact of FASB EITF Issue No. 04-8. The results or events predicted in these statements may vary materially from actual future events or results. Factors that could cause actual events or results to differ from anticipated events or results include: intense competition in DoubleClick's industry, lack of growth or decline in online advertising or marketing, changes in government regulation, uncertainties related to DoubleClick's decision to review strategic options, failure to manage the integration of acquired companies, failure to successfully manage the Company's international operations and other risks that are contained in documents which the Company files from time to time with the Securities and Exchange Commission, including the Company's most recent reports on Form 10-K and Form 10-Q. In addition, any forward-looking statements represent the Company's estimates only as of today and should not be relied upon as representing the Company's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, it may choose not to do so, even if the Company's estimates change. INVESTOR CONTACT: Jason McGruder Manager, Investor Relations 212-381-5182 PRESS CONTACT: Jennifer Miller VP, Corporate Communications 212-381-5705 DATASOURCE: DoubleClick Inc. CONTACT: Investors - Jason McGruder, Manager, Investor Relations, +1-212-381-5182, or Media - Jennifer Miller, VP, Corporate Communications, +1-212-381-5705, both of DoubleClick Inc. Web site: http://www.doubleclick.com/ http://ir.doubleclick.net/

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