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Summary

  • EVDY a provider of digital health and welfare solutions, using data and analytics technology to provide users with personalized content.
  • EVDY plans to raise $100.1 million in its upcoming IPO, offering 7.2 million shares at an expected price range of $13-$15 per share.
  • We plan to avoid this IPO, due to its troubling financial losses, as well as the recent slide of tech stocks.

Everyday Health Inc. (NYSE:EVDY), a provider of digital health and welfare solutions, plans to raise $100.1 million in its upcoming IPO.

The New York, New York-based firm will offer 7.2 million shares at an expected price range of $13-$15 per share. If the IPO can reach the midpoint of that range at $14 per share, EVDY will command a market value of $454 million.

EVDY filed on February 24, 2014.

Lead Underwriters: Citigroup Global Markets Inc., Credit Suisse Securities LLC, JP Morgan Securities LLC.

Underwriters: Stifel Nicolaus & Company Inc., Suntrust Robinson Humphrey Inc.

Summary

EVDY uses data and analytics technology to provide its users with personalized content from a variety of health brands across channels, including mobile devices, the web, and social media. The firm's content includes 25 websites and 26 mobile applications, which have been downloaded over 14 million times. The firm estimates that in 2013, 43 million consumers and 500,000 healthcare professionals interacted with its health properties, including Everyday Health, MayoClinic, What to Expect, Medpage Today, and Jillian Michaels. The firm derives revenues from advertisements and other marketing solutions placed on its content.

Valuation

EVDY offers the following figures in its S-1 balance sheet for the year ended December 31, 2013:

Revenue: $155,850,000.00

Net Loss: ($18,236,000.00)

Total Assets: $192,282,000.00

Total Liabilities: $123,485,000.00

Stockholders' Equity: ($89,969,000.00)

Business

EVDY faces competition from other providers of digital health information. These include health-specific websites like WebMD Health Corp. (NASDAQ:WBMD) as well as sites with health-oriented elements like Google (NASDAQ:GOOG) and Yahoo! (NASDAQ:YHOO). The firm also competes with distributors of offline health resources like Time Warner Inc. (NYSE:TWX), Rodale Inc., and Discovery.

Management

Co-founder Benjamin Wolin has served as EVDY's CEO since the firm's 2002 inception. He previously served as Vice President of Production and Technology for Beliefnet Inc. and as Web Producer for Tribune Interactive Inc. Mr. Wolin holds a B.A. in History from Bowdoin College.

Conclusion

We plan to avoid this IPO.

EVDY's consistent losses over the last several years are troubling, and we're unconvinced that the firm's advertisement-reliant revenue streams are sufficient to push it into the black.

Though it may receive a boost from name recognition, we believe EVDY's lackluster financials and huge losses are not attractive to IPO investors at this time.

The recent slide of less mature tech stocks may prevent this IPO from making much of a splash.

Source: Everyday Health IPO Less Vigorous Than It Sounds