Hot Growth Special Report 2006 >



aQuantive (AQNT)

Web advertising is fueling the new growth in tech, and aQuantive has found itself in the right place at the right time. The digital marketing firm, formed by the merger of Avenue A and Razorfish in 1997, has become one of the leaders in the emerging niche. It purchases ads for customers as well as establishing Web sites for their various campaigns. As advertising moves from analog to digital, Seattle-based aQuantive has seized the opportunity to build a booming business. In 2005, operating income jumped 130%, to $61 million, on sales of $308.4 million, a 95% gain. Net income slipped 17%, however, because the company got socked with its first income-tax bill. It forecasts essentially flat earnings in 2006 because of expenses for stock compensation. In addition, the company faces stiff competition, notably from DoubleClick, which has taken some European customers away.

Company Info

2005 Rank


Market Value*
($ Millions)


($ Millions)


Sales Growth
(3-yr. avg. annual)

24.5 %

($ Millions)


Profit Growth
(3-yr. avg. annual)

72.8 %

Return on Inv. Capital (3-yr.)

11.9 %

Share Price
12-Mo. Hi/Lo


Share Price
As of 4/28/06


Return on Equity

8.1 %

P/E Ratio


No. of Employees


Industry Internet Software & Services


Location Seattle
Phone 206 816-8800
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

aQuantive, Inc. operates as a digital marketing company in the U.S. It operates through three segments: Digital Marketing Services, Digital Marketing Technologies, and Digital Performance Media. The Digital Marketing Services segment provides Web site development, interactive marketing, and creative development and branding. The Digital Marketing Technologies segment provides advertising agencies and enterprise marketers with online advertising campaign management, search engine marketing, and Web site optimization tools and services through its proprietary Atlas Digital Marketing Suite. It also offers Atlas Publisher, a technology product to manage digital advertising inventory. The Digital Performance Media segment operate online advertising networks that serve as intermediaries between online publishers and advertisers by procuring online advertising inventory primarily from publishers and reselling that inventory to advertisers. The company was founded as Avenue A, Inc. in 1997 and changed its name to aQuantive, Inc. in 2003. aQuantive is headquartered in Seattle.

Data provided by Capital IQ
Brian McAndrews

Brian McAndrews, 47

Chief Executive Officer, President and Director

Total Compensation*

$ 978,156

Total Options Value*

$ 60,265,291

* Fiscal Year 2005

Stanford University - MBA, Harvard University - BA

Executive Bio

Brian McAndrews has been CEO of aQuantive since September, 1999, and its president since January, 2000. McAndrews serves as a San Francisco Keynote Speaker of Ad:tech Expositions. From July, 1990, to September, 1999, McAndrews worked for ABC, the broadcasting and communications company, holding executive positions at ABC Sports, ABC Entertainment, and ABC Television Network. Most recently he served as an executive vice-president and general manager of ABC Sports. From 1984 to 1989, McAndrews served as a product manager for General Mills, a leading consumer-products manufacturer. McAndrews has been a director of Blue Nile since April, 2004, and a director of aQuantive, of which Avenue A | Razorfish is an operating unit, since September, 1999. He has been a director of Inc., since October, 2005. McAndrews holds an MBA from Stanford University and a BA from Harvard University.

Management Team

Key Executives

Brian McAndrews; Clark M. Kokich; Scott Howe; Michael T. Galgon; James A. Warner; Ona M. Karasa; Linda A. Schoemaker; Robert Lord; Darin Brown; David Friedman; Wayne Wisehart

Board Directors

Mike B. Slade; Jack Sansolo; Richard P. Fox; Jaynie M. Studenmund; Linda J. Srere; Nicolas J. Hanauer; Brian McAndrews; Peter Neupert

Executive Data provided by Capital IQ