ReachLocal (RLOC), a provider of online marketing and reporting solutions for SMBs, priced its IPO yesterday at $13 per share, below its anticipated range.
Business Overview (from prospectus)
Our mission is to help small and medium-sized businesses, or SMBs, acquire, maintain and retain customers via the Internet. We offer a comprehensive suite of online marketing and reporting solutions, including search engine marketing, display advertising, remarketing and online marketing analytics, each targeted to the SMB market. We deliver these solutions to SMBs through a combination of our proprietary RL Platform and our direct, “feet-on-the-street” sales force of Internet Marketing Consultants, or IMCs, and select third-party agencies and resellers.
We use our RL Platform to create advertising campaigns for SMBs to target potential customers in their geographic area, optimize those campaigns in real time and track tangible results. Through a single Internet advertising budget, we enable our clients to reach local customers across all the major search engines and leading general interest and vertically focused online publishers. Based in or near the cities in which our clients operate, our IMCs establish a direct consultative relationship with our clients and, empowered by the RL Platform, work with the clients to achieve their marketing objectives.
Offering: 4.2 million shares at $13 per share. Net proceeds of approximately $6.1 million will be used for debt repayment.
Net revenues for the three months ended 31 March 2010, increased $20.9 million to $63.6 million from $42.7 million for three months ended 31 March, 2009...Cost of revenues for the three months ended 31 March, 2010 was $34.8 million as compared to $23.8 million for the three months ended 31 March, 2009...Operating loss for the three months ended 31 March, 2010 was $2.9 million as compared to loss of $2.2 million for the three months ended 31 March, 2009...Net loss remain unchanged at $2.2 million both for the three months ended 31 March, 2010 and 2009...
The market for local online advertising solutions is intensely competitive and rapidly changing, and with the introduction of new technologies and market entrants, we expect competition to intensify in the future. Many of our current and potential competitors enjoy substantial competitive advantages, such as greater name recognition, longer operating histories and larger marketing budgets, as well as substantially greater financial, technical and other resources. In addition, many of our current and potential competitors have established marketing relationships and access to larger customer bases. Our competitors include Internet Marketing Providers, Traditional, Offline Media Companies and Other Technology-Focused, SMB Marketing Providers.
- Company website
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