Chatter: Will TubeMogul be an IPO star or another video dud?

    Check out the latest AD-Vantage news, features and columns. Subscribe today Last week, online video DSP TubeMogul, which has been active in promoting online video advertising in Canada, revealed intentions to trade on the NYSE as “TUBE”. TubeMogul aims to make $75 million, though that number is just a placeholder for fees, and […]
 
 

Last week, online video DSP TubeMogul, which has been active in promoting online video advertising in Canada, revealed intentions to trade on the NYSE as “TUBE”.

TubeMogul aims to make $75 million, though that number is just a placeholder for fees, and it hasn’t announced share prices. As of this filing, TubeMogul has raised $53 million in venture funding, and its annual revenue reached $57.2 million. However, its net loss doubled from $3.6 million in 2012 to $7.4 million in 2013.

Here’s the chatter on the upcoming IPO:

Jim O’Neill @ VideoMind:

The big question, following relatively weak IPOs by Tremor and YuMe last year is: Will TubeMogul be able to excite enough attention on Wall Street to make its IPO an “event?” Or, will it simply be another tech company that makes some noise on the day of its IPO and then quietly retreats into single-digit trading?

It’ll be interesting to see … if it continues to maintain a $75 million target. It could be a tough go.

Zach Rodgers @ AdExchanger:

A “Ctrl+F” [on the IPO filing] suggests that TubeMogul is attempting to build a SaaS story with 626 mentions of the word “platform.” “Programmatic,” meanwhile, gets 20 mentions.

Whether “TUBE” is truly a software solution, vs. a human-based transactional platform, remains to be seen. It may be that the company is eager to play up its software licensing models because platform companies tend to earn higher multiples in “revenue events” such as IPOs and acquisitions.

Tim Peterson @ Ad Age:

At the time of their IPOs, both Tremor and YuMe were derided for running ad network businesses that lean on sales teams to buy and sell ads. … Two-thirds of TubeMogul’s revenues come from advertisers using the company’s sales team to place ad buys on their behalf. The other third comes from a self-serve system that lets a media buyer place their own bids for ads sold through real-time auctions. That latter business is where TubeMogul is focusing its future.

Wall Street holds automated ad-buying tech companies in higher regard. Ad-retargeting firm Criteo has seen its stock increase by 30% since going public in October. At the time of its September debut, Rocket Fuel may have marked the most successful ad-tech IPO of 2013.

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