Blinkx (LSE: BLNX) -- the search engine specialist that enables the annoying, but highly lucrative, targeted video advertising you see online -- is currently up over 3%, following the release of its full-year results to the end of March 2013. Adjusted pre-tax profit was up 129%, to almost $25m, on revenue that had increased 73%, to £198m. Basic earnings per share grew 336%, to 4.8 cents.
The company's success is due to growth in the online video advertising sector, which it attributes to factors such as widespread broadband adoption, the proliferation of connected devices such as smartphones and tablets, and the rapid migration and consumption of online video content.
Commenting on the results, S. Brian Mukherjee, CEO of blinkx, said:
"This has been an exciting year for blinkx and we are delighted to report a record performance. The business demonstrated strong underlying growth, stability and efficiency, which was accelerated by the ahead-of-schedule integration of the acquisitions that we made last year. The scale, scope and reach of these acquisitions enabled us to serve a greater number of advertisements to a wider audience at robust monetization rates, which helped drive our growth.
"We believe the market momentum underscores the vitality of the sector and of our business model. The opportunity for blinkx lies in maximizing yield through product innovation, expansion of its distribution channels and the capture of new and emerging revenue streams. Based on our capabilities and the fundamentals of the industry, we remain confident in our prospects and opportunities."
The performance of blinkx's share price has certainly been impressive over the past year -- it's up 140% (albeit that it's still over 30% off its high of October 2011). But if blinkx really has got its business model right, this could well be only the start.
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