Internet advertising firm L90, Inc. (Nasdaq: LNTY) gained 27/32 to 5 21/32 Thursday after reporting strong results for the third quarter.
The Los Angeles, California-based company said revenue for the quarter surged 350 percent from a year earlier to $16.2 million. Gross margin improved by 530 basis points during the quarter to 35.3 percent.
The company posted a loss before charges of $5.2 million, or 22 cents per share, and said it is on track to turn a profit by the end of next year.
“At a time when many companies around us are struggling, L90’s business continues to accelerate,” said chief executive officer John Bohan.
CIBC World Markets reportedly upgraded L90 to strong buy from buy following the results.
L90 last week said it was expecting a strong quarter, citing “strong momentum” in the company’s ProfiTools business and “next-generation marketing solutions.” Bohan said the company’s success stems from its focus on “creating an integrated, opt-in marketing platform.”
L90 took on 189 new advertising clients during the quarter, including Adidas, Avis, Compaq, Estee Lauder, NextCard, Pitney Bowes, and Texas Instruments. The company now has 1,061 advertising clients.
Also during the third quarter, L90 added 71 Web sites to its network, expanding its advertising inventory to more than 3.1 billion impressions per month.
L90 makes ProfiTools, a set of technology products that help companies advertise over the Internet and helps Web sites target their customers. Clients include Visa, Microsoft, General Motors, Warner Bros. and Procter & Gamble.
“The downfall of many good dot-coms has not been a failure to attract visitors,” Bohan said in the October 16 announcement predicting a solid quarter. “It has been the failure to turn them into customers.”