FindWhat.com Turns Up a Strong Fourth Quarter

FindWhat.com (FWHT Quote) reported better-than-expected financial results for the fourth quarter, confirming the continued growth of the paid-search Internet advertising market dominated by Overture Services (OVER Quote).

Comments from FindWhat.com executives, however, once again drew attention to business challenges faced by Overture, which is expected, when it reports fourth-quarter financials Thursday, to report revenue 15 times greater than FindWhat.com's.

The pay-per-click advertising market in which Overture and FindWhat.com operate -- allowing advertisers to bid for search terms on Internet search engines, but pay for those listings only when users click on their listings to visit their Web sites -- has been an island of strength in the online ad market. But Overture's successes, in particular, have been tinged by investor concerns over how much the company will have to pay Web publishers for the privilege of placing its search engine on their properties.

On Tuesday, FindWhat.com's shares fell 6 cents to $7.75, then jumped 55 cents in after-hours trading upon release of the company's financials. Overture, which announced a deal with ESPN.com Tuesday, saw its shares fall 76 cents to $22.33 in normal trading. ...