Shares of ReachLocal Inc. soared more than 30 percent on Wednesday after the Woodland Hills-based online marketing company reported a partnership with Google Inc. and boosted its full-year financial outlook.
Word of those developments came after markets closed Tuesday, when ReachLocal also announced its first-quarter loss widened. The stock began trading at $13 in an initial public offering in May. Shares gained $5.76, or 32 percent, to $23.75 in afternoon trading on Wednesday. Earlier in the session, shares climbed as high as $24, but were still shy of the $28.39 peak they hit on Jan. 13.
ReachLocal helps small to mid-sized businesses target local customers via the Internet.
Under the Google deal, ReachLocal will be a partner in the search engine's AdWords system, which links search results to ads. Financial terms of the agreement were not disclosed.
ReachLocal said the partnership is designed to drive growth in existing markets, and expansion into new international markets over the next three years. ReachLocal already has a presence in Canada, Australia, the United Kingdom and Germany.
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