MediaMind Technologies (MDMD), a global provider of digital advertising campaign management solutions to advertising agencies and advertisers, priced its IPO on 10th August at $11.5 per share, below its $14 - $16 expected range.
Business Overview (from prospectus)
We are a leading global provider of digital advertising campaign management solutions to advertising agencies and advertisers. Our goal is to enable digital media advertisers to engage consumers of digital media with more impact and efficiency.Our integrated campaign management platform, MediaMind, helps advertisers and agencies simplify the complexities of managing their advertising budgets across multiple digital media channels and formats, including online, mobile, rich media, in-stream video, display and search. MediaMind provides our customers with an easy-to-use, end-to-end solution to enhance planning, creation, delivery, measurement and optimization of digital media advertising campaigns. As a result, our customers are able to enhance brand awareness, strengthen communications with consumers, increase website traffic and conversion, and improve online and offline sales. Our solutions are delivered through a scalable technology infrastructure that allows delivery of digital media advertising campaigns of any size.
We are the only major provider of integrated campaign management solutions not committed to, or affiliated with, a particular publisher, agency or agency group, or advertising network. We believe our independence allows us to provide our customers with unbiased insight and analysis regarding the implementation and effectiveness of their digital media advertising campaigns.
Offering: 5 million shares at $11.5 per share. Net proceeds of approximately $3 million will be used for capital expenditure.
Revenues increased by $9.8 million, or 36%, to $37.2 million in the six months ended June 30, 2010, from $27.4 million in the six months ended June 30, 2009.... Gross margin increased slightly from 94% in the six months ended June 30, 2009 to 95% in the six months ended June 30, 2010...Research and development expenses increase by $1.2 million, or 37%, to $4.5 million in the six months ended June 30, 2010, from $3.3 million in the six months ended June 30, 2009...Selling and marketing expenses increased by $5.5 million, or 34%, to $21.6 million in the six months ended June 30, 2010, from $16.1 million in the six months ended June 30, 2009...Net income increased to $3.4 million in the six months ended June 30, 2010, from $1.9 million in the six months ended June 30, 2009...
The markets in which we operate are rapidly evolving and highly competitive. We expect this competitive environment to continue. We believe that the principal competitive factors affecting the market for digital advertising services and tools are existing strategic relationships with customers and vendors globally; ease-of- use, integration and customization; innovation; technology; quality and breadth of service, including local language support; data analysis; price and independence.
We compete against other integrated campaign management and ad serving providers, stand-alone rich media companies, and channel-specific niche providers. Our main competitors in the campaign management and ad serving category are DoubleClick (which was acquired by Google in March 2008) (GOOG), Atlas (which was acquired by Microsoft in May 2007) (MSFT) and MediaPlex , a division of ValueClick (VCLK). Our main competitors in the stand-alone rich media category are niche players, such as PointRoll (which is owned by Gannett) (GCI), Eyewonder (which was acquired by Limelight Networks in December 2009) (LLNW), Unicast (which is owned by DG FastChannel) (DGIT) and FlashTalking. Google (GOOG) and Microsoft (MSFT) have significantly greater name recognition and greater financial, technical and marketing resources than we do. In addition, many of our other competitors have longer operating histories, greater name recognition, larger client bases or greater financial, technical and marketing resources than we do. We believe that we maintain a competitive position in the markets in which we operate.
- Company website
- Bloomberg: MediaMind shares tumble after IPO prices low
- Reuters: MediaMind prices $57.5 mln IPO below range
- WSJ: MediaMind IPO Prices Low, Declines In Early Trading