L90, Inc. (Nasdaq: LNTY) was up 7/16 at 6 1/2 early Monday after the online advertising company said third quarter results are likely to exceed analysts’ expectations — a rare announcement in an industry that has seen business slow in recent months.
Revenue, gross margin and per-share results will all be better than most analysts expect, L90 said, due to what the company termed “strong momentum” in the its ProfiTools business.
Revenue, at about $16.2 million, will be 350 percent higher than in last year’s third quarter, said chief financial officer Tom Sebastian. The company expects gross margin of about 35 percent, 500 basis points higher than in the second quarter, and the loss per share will be about 22 cents, before amortization of goodwill, 3 cents better than analysts’ consensus forecast.
President and chief executive officer John Bohan said the company distinguishes itself from other online advertisers, many of which are suffering as dot-com clients struggle or go out of business, and traditional advertisers.
“Rather than focusing strictly on banner ads that are inherently unproductive for advertisers and Web sites, our technologies are designed to build more powerful relationships,” Bohan said.
“The downfall of many good dot-coms has not been a failure to attract visitors,” continued Bohan, “it has been the failure to turn them into customers.” L90, he said, focuses on “creating an integrated, opt-in marketing platform that enables our advertisers and Web site clients to build stronger relationships with consumers.”
L90 said it will report results and discuss its “vision” for ProfiTools after the close of trading on October 25th.
L90, headquartered in Los Angeles, recently opened its eighth office, a new branch in Seattle, Washington.