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The East Bay-based video ad-tech company prices IPO of $7 per share, down from original $11 to $13
Shares of video ad platform TubeMogul are up 46% to over $10 a share, in the company's public debut on the NASDAQ Exchange on Friday, under the symbol TUBE.
That's quite a welcome, despite the fact that the company and its bankers decided to lower the initial price to $7 from the initial $11 and $13 price-point they hoped to attract from investors during their pre-IPO roadshow. The drop in price also meant the company slashed the amount of money it wanted to raise from $93 million to $43.8 million. The company sold 6.25 million shares at $7.
TubeMogul stock is currently trading at $10.27 a share. VatorNews will update this story later in the day with the company's final stock price.
TubeMogul stock ended its first day of trading up 64.29%, to end up $4.50 to $11.50 a share.
Though it started out as a video analytics platform, TubeMogul has since pivoted to become a programmatic video advertising platform focused exclusively on the buy side of the digital media industry.
Unlike other ad networks, TubeMogul does not work directly with publishers and does not buy inventory and resell it. Instead, they provide a SaaS based platform that brands and agencies use to buy media from both public and private exchanges. The platform automates the execution and optimization of video campaigns and generates analytics in real-time that are used to improve the brand impact of each campaign.
The company has two revenue channels: 1) transaction revenue based on spending levels from clients who adopt TubeMogul's software platform; 2) media revenue from selling campaigns at a fixed price that TubeMogul fulfills using exchange inventory bought in real-time.
TubeMogul's revenue increased healthily last year, going from $34.2 million in 2012 to $57.2 million in 2013. It made $19 million from Platform Direct, up from $5.4 million in 2012, while the other $37.8 million came from Platform Services, up from $28.7 million the year before.
At the same time, though, the company’s net loss more than doubled, going from 3.6 million for 2012 to $7.4 million in 2013.
The company's biggest expense comes from sales and marketing, which cost the company $21 million in 2013, more than double the $10 million it spent in 2012. It also spent $10 million in general and administrative costs, as well as $11 million on research and development.
Founded in 2006, TubeMogul raised a total of $53 million in funding, most recently a $10 million Series C from SingTel Innov8, Cross Creek Capital, Digital Advertising Consortium, Foundation Capital and Trinity Ventures.
(Image source: businessinsider.com)
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Founded in 2006 by online video buffs who met while in graduate school and won the UC Berkeley Business Plan Competition, TubeMogul's objective from the start has been to empower online video producers, advertisers and the online video industry by providing publishing tools and insightful, easy to interpret analytics.
With TubeMogul, users upload videos once and TubeMogul deploys them to as many of the top video sharing sites the producer chooses. TubeMogul's integrated analytics then provide a single source of metrics on where, when, and how often the videos are viewed. TubeMogul's free beta service has been live since November of 2006. In January 2008, TubeMogul announced the launch of its Premium Products, which include a host of new professional features.