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Ask Jeeves Shows Positive Earnings Due to Advertising Revenue

Ask Jeeves Shows Positive Earnings Due to Advertising Revenue

Ask Jeeves Inc. registered earnings that topped financial expectations by Wall Street and raised its quarterly and full-year forecasts, citing increased Internet traffic and web advertising revenue spending and sales.

The search engine companie’s shares about 4 percent in trading after the positive news from the Ask Jeeves company, rumored in some arenas to be acquition bait for Microsoft or Yahoo (again, rumors).

Ask Jeeves had a profit from continuing operations of $13.4 million, or 23 cents per diluted share, compared with its year-earlier income from continuing operations of $8.5 million, or 17 cents per diluted share. The year-earlier results included an acquisition-related gain of 10 cents per share.

Revenue was up almost 73 percent, to $39.2 million from $22.7 million last year. Rueters reports that Ask Jeeves’s advertising partnership with Google Inc., the No. 1 Web search provider, has contributed 69 percent of overall revenue.

Ask Jeeves surprised a large part of the search market by gobbling up Interactive Search Holdings Inc. for about $328 million. The Ask Jeeves acquisition of Interactive Search Holdings opened the Ask Jeeves umbrella over their new BIG and branded properties- iWon, Excite and My Search.

The acquisition of iWon, Excite and MySearch essentially doubled the Ask Jeeves’ market share to 7 percent of the search engine industry (figure from CNN). Between all of its brands, Interactive Search had 700 million searches in the fourth quarter of 2003- 20 million more than the 680 million searches that Ask Jeeves pulled in over the same time span.

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Loren Baker

Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing ... [Read full bio]

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