BUSINESSWEEK'S HOT GROWTH COMPANIES

Hot Growth Special Report 2006 >

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98

Digitas (DTAS)

A beneficiary of the boom in online ad spending, Boston-based Digitas is a pure play in online advertising. Sales rose 35% in 2005, and profits jumped 32% to $40.9 million. Digitas' stock has underperformed that of fellow Hot Growth resident aQuantive (AQNT), in part because of concerns over Digitas' reliance on General Motors (GM), which provided 22% of 2005 revenue. In an effort to diversify, Digitas in January acquired Medical Broadcasting, which specializes in creating ads for pharmaceutical companies. The addition should allow Digitas to ride a hot trend: consumers receiving health-related services online. If you bet on Digitas during the Web bust, happy retirement: Shares have risen fifteenfold since hitting a low of 88 cents.

Company Info

2005 Rank

NR

Market Value*
($ Millions)

1,262.9

Sales*
($ Millions)

603.1

Sales Growth
(3-yr. avg. annual)

20.9 %

Profits*
($ Millions)

44.6

Profit Growth
(3-yr. avg. annual)

55.7 %

Return on Inv. Capital (3-yr.)

9.6 %

Share Price
12-Mo. Hi/Lo

15/10

Share Price
As of 4/28/06

14

Return on Equity

10.5 %

P/E Ratio

31

No. of Employees

1,740

Industry Internet Software & Services
CURRENT
MARKET INFO

DTAS >

COMPANY WEB SITE >
Location Boston
Phone 617 369-8000
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Digitas Inc. operates as a global marketing services organization. It operates as the parent company of Modem Media, an interactive marketing strategy and services firm; Digitas LLC, a digital and direct marketing agency; and Medical Broadcasting, LLC, which offers digital professional services to pharmaceutical and health-care marketers. Digitas offers marketing services and strategy to design, build, and run the marketing engines that enable customer acquisition, cross-sell, loyalty, affinity, and care operations across digital and traditional channels. The company offers infrastructure and technology enablement services, including customer relationship management infrastructure work, such as customer strategy, research and planning, analytics and market data, and technology enablement; and digital and direct agency services, including digital marketing, Internet solutions, live channels, promotions, and direct marketing/direct response. It serves various industries, including financial services, media and entertainment, travel-related services, health care and pharmaceuticals, business products and services, technology, telecommunications, and consumer products. Digitas was founded by Michael E. Bronner in 1980 and has its headquarters in Boston.


Data provided by Capital IQ
 
David Kenny

David Kenny, 44

Chief Executive Officer


Total Compensation*

$ 1,662,470

Total Options Value*

$ 86,129,156

* Fiscal Year 2005

DEGREES HELD
Harvard Business School - MBA, Kettering University - BS


Executive Bio

Kenny has been CEO of Digitas, a relationship marketing services firm and a partner of Modem Media, since September, 1997. Prior to Digitas, Kenny held a number of executive positions with strategy consulting firm Bain & Co. from 1988 through 1997. From 1991 to 1997, Kenny was a partner at Bain, and was named to its policy committee in 1995. He has been the chairman of Digitas since January, 1999. He has been a director of Digitas, since 1997 and a member of executive committee. Kenny also serves as a director of the Corporate Executive Board and as a director of Teach for America. He holds a BS from the General Motors Institute (now Kettering University) and an MBA from Harvard Business School.


Management Team

Key Executives

David Kenny; Laura W. Lang; Ernest W. Cloutier; Mark Beeching; Cella Irvine; Torrence Boone; Brian K. Roberts; Martin F. Reidy

Board Directors

Arthur H. Kern; David Kenny; Robert Glatz; Gail J. McGovern; Gregor S. Bailar; Joseph R. Zimmel


Executive Data provided by Capital IQ