UPDATE – TubeMogul on Thursday morning filed an amendment to its stock offering with the Securities and Exchange Commission significantly lowering the offering price to $7 to $8 a share from its stated $11 to $13 a share offering as of Wednesday.
In its amendment to its SEC Form S-1 filed July 17, TubeMogul states:
“We expect the public offering price to be between $7.00 and $8.00 per share. Currently, no public market exists for the shares. We intend to list the common stock on The Nasdaq Global Select Market under the symbol “TUBE.” ”
Planning to sell 6.2 million shares, TubeMogul should bring in about $47 million.
Neither the amendment nor company officials would say why the offering price was lowered, with officials citing the mandatory “quiet period” before an offering. The amendment states – as did previous versions – that “We are an “emerging growth company” as defined in the Jumpstart our Business Startups Act of 2012. “Investing in the common stock involves risks that are described in the “Risk Factors” section beginning on page 11 of this prospectus.”
It cites the same “Risk Factors” as its previous S-1 documents — chiefly that they company has not yet made a profit and it cannot predict when or if it will make a profit in the future.
TubeMoguls’ revenues have been doubling year over year and it has developed a digital advertising platform that lets companies manage and measure digital video advertising, a market defined as growing nearly 300 percent a year as video advertising moves to the Internet and away from analog television.
Its workforce has grown five-fold in three years from 57 employees to 280 employees and the company cites that rapid grown as a risk factor, “if we fail to manage growth effectively.”
Deeper in the prospectus it states that 95 to 99 percent of its revenues “came from advertising served to personal computer users” and that its future performance will be “dependent in part” upon the continued growth of digital video and its ability to grow revenues in mobile video and social video and TV video on demand.
July 16 – An Emeryville startup, video ad company TubeMogul, is expected to go public on Friday, offering stock at a target price of $11 to $13 per share in hopes of raising $93 million, according to a filing with the Securities and Exchange Commission. The timing is estimated on IPO Scoop.
That would make it one of the largest IPOs from an Oakland-area company.
Started by two UC Berkeley Haas Business School alums, Brett Wilson, CEO, and John Hughes, President of Products, TubeMogul describes its business as a video ads platform. “The products, tools and features within the platform make programmatic video planning, buying and measurement a reality for brands and agencies of any size.” It solves a problem in the video ad space by providing a way to see the impact of an ad more clearly.
TubeMogul has been noted by Deloitte Technology and others as one of the fastest-growing companies in tech. Its revenues in the first quarter more than doubled to $22 million from the previous year, according to its financial statements, after growing 70 percent last year.
It had been losing money just as fast, with a net loss more than doubling last year to $7.4 million from $3.5 million in 2012, until this quarter, when the losses slowed to a mere $767,000.
That made the folks at TechCrunch take notice. “Quick revenue growth and falling losses? In today’s market that could very well be a palatable combination,” it wrote in a column last week. TubeMogul had increased the number of shares it would offer to 7 million from 6.2 million.
In fact, it is growing so fast that it needs the money simply for general corporate purposes of operations, sales and marketing, says its prospectus, though it does add a caveat that TubeMogul might use some of the proceeds for acquisitions of technologies or businesses that might grow its own.
The offering is being handled by the Merrill Lynch division of Bank of America, Citigroup and RBC Capital Markets.
Its management said this about its ad planning software platform. “By reducing complexity, improving transparency and leveraging real-time data, our platform enables brands to gain greater control of their digital video advertising spend and achieve their brand advertising objectives.”