Hot Growth Special Report 2006 >



ValueClick (VCLK)

Where has all the advertising gone? Much of it has found its way to the Web through ValueClick, which aggregates ad campaigns for more than 6,000 clients and ad agencies and packages them for online sites and search engines. When its comes to shopping, though, the eight-year-old company headquartered in Westlake Village, Calif., has few peers: In the past three years, ValueClick has plunked down $433 million to buy six online marketing companies, including those that market through e-mail and on-line comparison shopping. This has allowed it to triple revenues to $304 million since 2003. That's when the company also turned profitable for the first time. And when it's not marketing online? The company has a small but growing business in selling ink-jet cartridges online, which it also bought last year.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

70.7 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

103.4 %

Return on Inv. Capital (3-yr.)

10.8 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

6.6 %

P/E Ratio


No. of Employees


Industry Internet Software & Services


Location Westlake Village, Calif.
Phone 818 575-4500
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

ValueClick operates as an online marketing services company worldwide. It offers a suite of products and services that enable marketers to advertise and sell their products through various online marketing channels. The company operates in three segments: media, affiliate marketing, and technology. The media segment provides a range of online media solutions in the categories of display/Web advertising, lead generation marketing, email marketing, search marketing, comparison shopping, and promotional and industry-focused online content to advertisers and advertising agencies. It also sells consumer products directly to end-user consumers through its own e-commerce Web sites. The affiliate marketing segment offers technology and services that enable advertisers to manage, track, and analyze a range of online marketing programs. The technology segment provides technology infrastructure tools and services that enable advertisers and advertising agencies to implement and manage their own online display advertising and e-mail campaigns, and that assist online publishers with management of their Web site inventory. It also offers ASP delivering Web-based enterprise management systems to advertising agencies, marketing communications companies, public relations agencies, and other corporate advertisers. The company's customers primarily include direct marketers, brand advertisers, and the advertising agencies. It markets products and services primarily through direct marketing, print advertising, and online advertising, ValueClick properties' Web sites, trade shows, and other media events. ValueClick was founded in 1998 and is based in Westlake Village, Calif.

Data provided by Capital IQ
James R. Zarley

James R. Zarley, 61

Chairman, Chief Executive Officer and President

Total Compensation*

$ 823,016

Total Options Value*

$ 15,515,187

* Fiscal Year 2005

Executive Bio

James Zarley has been the president of ValueClick, a single-source provider of media, technology, and services across major interactive marketing channels since January, 2001; CEO since May, 1999; and chairman since May, 1998. Zarley has been an adviser to ValueClick since May, 1998. In February, 1999, Zarley joined ValueClick in a full-time capacity, and in May, 1999, he became CEO. Before joining ValueClick, Zarley served as CEO of Quantech Investments, an information services company, from April, 1987, to December, 1996. From December, 1996, to May, 1998, Zarley served as chairman and CEO of Best Internet until its merger with Hiway Technologies, a Web hosting company, in May 1998. From May, 1998, to January, 1999, Zarley served as chief operating officer of Hiway Technologies until its merger with Internet service provider Verio. He has been a director of Texas Roadhouse since 2004.

Management Team

Key Executives

James R. Zarley; Peter Wolfert; Scott P. Barlow; Tom A. Vadnais; Samuel J. Paisley; David Yovanno; Scott Ray; Jeff A. Pullen; Carl White; Jeff Hirsch; Farshad Fardad; Martin D. Andersen; Joshua R. Gray

Board Directors

James R. Zarley; David S. Buzby; Martin T. Hart; Tom A. Vadnais; Jeffrey F. Rayport

Executive Data provided by Capital IQ