YuMe Targets $65M IPO

Online Video Ad Firm Posted a Net Loss in Q1 2013 After Turning a Tidy Profit in 2012
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Online video ad network YuMe is looking to raise $65 million via an initial public offering and trade on the New York Stock Exchange under the “YUME” symbol, according to an S-1 filed on July 2.

YuMe, founded in 2004, has developed a proprietary platform designed to deliver targeted video advertising campaigns to a growing variety of IP-connected devices. The company said it delivered over 8 billion video ad impressions last year  across PCs, smartphones, tablets, set-tops, game consoles, and connected TVs. According to the S-1, it also counts 64 of the top 100 U.S. advertisers as customers.

For the three-month period ended March 31, 2013, YuMe recorded a net loss of $3.3 million on revenues of $26.6 million, a 33% increase from the year-ago period. For all of 2012, YuMe recorded net income of $6.3 million, versus a net loss of $11.08 million in 2011. YuMe also posted 2012 revenues of $116.7 million, up from the $68.56 million it generated in 2011.

As of March 31, the company had an accumulated deficit of $25.3 million, had cash and cash equivalents of $26.83 million, and had an employee base of 357. YuMe has raised $74.4 million so far.

Its competitors include Hulu, Google (via YouTube and DoubleClick), Tremor Video, as well as a range of privately-owned ad exchanges, including Adap.tv. Tremor Video's IPO is off to a rough start after debuted on the NYSE on June 27 at $10 each. Shares in Tremor closed Friday (July 5) at $7.12 each, down 38 cents for the day.

YuMe's S-1 outlines several growth strategies, including expanding into new geographies and look to pursuing strategic acquisitions.

Citigroup Global Markets, Deutsche Bank Securities, and Barclays Capital Inc. are acting as joint book-running managers for YuMe’s IPO.