ExactTarget files for $100M IPO
ExactTarget (Indianapolis, IN, USA) has filed its S-1 form with the US Securities & Exchange Commission.
ExactTarget provides on-demand cross-channel marketing software solutions to a direct client base of over 4,600 organizations. The company was founded in 2000 and abandoned its first attempt to go public in 2009 after securing $70 million in venture capital financing. ExactTarget’s backers include Technology Crossover Ventures, Greenspring Associates, and Battery Ventures.
The company has been growing revenue at an impressive rate, booking $148 million in sales for the 9 months ending September 30, 2011, representing a 55% increase from the same period the previous year. However, COGS increased 60%, Sales & Marketing expenses 59% and General & Admin. expenses rose 50%. The net loss for the period was $29,3M.
The market for cross-channel, interactive marketing SaaS solutions is relatively new and emerging. If the market develops more slowly or differently than we expect, our business, growth prospects and financial condition would be adversely affected. The market for cross-channel, interactive marketing SaaS solutions, such as ours, is relatively new and may not achieve or sustain high levels of demand and market acceptance. While email has been used successfully for interactive marketing for several years, marketing via new interactive marketing channels such as mobile and social media is not as well established, and revenue from email represents a substantial majority of our total revenue (from the IPO).
The future growth of the ExactTarget business depends both on the acceptance and expansion of emerging interactive marketing channels, as well as the continued use and growth of existing interactive marketing channels, including email.
ExactTarget has been investing to innovate, build market share and expand overseas. In the past 24 months, ExactTarget has bought three companies, launched an international division with operations in the United Kingdom and Australia, and added more than 500 employees. Its work force now tops 1.100, including more than 600 in Indianapolis.
Although the amount of online marketing activities has been increasing over the most recent years, it has been difficult for the platform providers to make money. The competition is fierce and the Danish provider Zoomio filed for bankruptcy in September 2011.