Monday, January 18, 2010

Velti Forecasts $106mil in 2009 Revenue

UK mobile advertising outfit Velti Plc (VEL), the company that bought AdInfuse last year, got a jump on FY 2009 earnings season by forecasting revenues of over $106mil... which represents 24% year on year growth. The company claims to have run over 2k campaigns for over 450 brands during the last year and indicated that demand for its products remains strong. While the company is trying to spin the earnings as "in-line", many analysts had them pegged in the $115mil range, so the company's stock took a 3% hit in London trading today. It'll be interesting to see the rest of the numbers when they report full details in the next few weeks. Despite the near miss, Velti is probably the biggest of the mobile advertisers, with revenues more than double those of hyped US plays like Millennial and AdMob (in the process of being acquired by Google for $750mil) and at least 5x the revenues of Quattro (which is being acquired by Apple for $275mil). Oh, and by the way, these guys actually turned a (real) net profit last year. One wonders why, in light of Velti's performance and the recent frothy valuations of other mobile advertisers, that its market cap is only around $153mil.

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