Архив метки: IPO

«Евросеть» вернется к вопросу проведения IPO в 2016 году

Гендиректор «Евросети» Александр Малис считает возможной новую попытку IPO, но не раньше 2016 года. Об этом он заявил в кулуарах форума «Российская розничная торговля».
«Евросеть» вернется к вопросу проведения IPO в 2016 году

IPO King.com: что показал индустрии мобильных игр выход на биржу создателя Candy Crush Saga?

King Digital, издатель популярной игры Candy Crush Saga для iOS и Andriod, вчера вышел на IPO. Первый день прошел далеко не радужно — акции King.com начали торговаться по 20,5 долларов.
IPO King.com: что показал индустрии мобильных игр выход на биржу создателя Candy Crush Saga?

Создатель Candy Crush Saga собирается привлечь в ходе IPO 500 млн $

King, создатель пугающе аддиктивной головоломки Candy Crush Saga, подал заявку на первичное размещение акций в Государственная комиссия по ценным бумагам и фондовому рынку США.
Создатель Candy Crush Saga собирается привлечь в ходе IPO 500 млн $

That’ll Fly: Kayak Closes IPO Day With Shares Up Nearly 30% And Market Cap Over $1.2B

Screen shot 2012-07-20 at 5.54.58 PM

It’s been a long time in coming. After first filing to go public in late 2010, Kayak finally came to market today debuting as a public company on NASDAQ, trading under “KYAK.” The travel bookings company has hit its fair share of bumps along the way, thanks to unsteady market conditions, erratic earnings, and a departing CFO.

All that has been washed away over the last 48 hours (at least for the time being), as Kayak exceeded the original $21 to $25 price range it set, raising $91M and opening at $26/share this morning. Not only that, but at the close of its first day as a public company, Kayak’s shares have jumped nearly 30 percent, finally resting at $33.18.

While it’s not the $115B market cap Facebook opened with, Kayak’s first day performance gives it a market capitalization that is nothing to scoff at — and makes just a tiny bit more sense. The prospectus shows that Kayak has 38.5 million shares outstanding after its IPO, giving the company a market cap today of just about $1.27 billion. Of course, those 38.5M shares don’t include the 9M stock options that can be exercised over the years. So, if you agree with SeekingAlpha, there’s going to be some dilution and after private placement, etc., that number could rise to $41.5M, potentially raising market cap to $1.36B.

Either way, not bad for a day’s work. And not bad considering a year ago, considering the company was posting a net loss a year ago. However, in the first quarter, Kayak turned that frown upside down, posting Q1 net income of $4.1M and grew revenue by 39 percent to $73.3M.

While it was a great day for the company, Kayak definitely still has a lot to worry about. Personally, I like Kayak a lot and use it consistently. However, I’ve also started to use Hipmunk to complement Kayak, and if I could get Hipmunk to change a few things, it wouldn’t be unreasonable to see myself switching over full-time. I’m sure some other readers may be in a similar boat.

So there’s competition from sites like Hipmunk (and potentially from companies like Superfly, which Kayak’s departed CFO now advises), or perhaps a more salient threat will come from Google. Er, Google Travel. Google bought ITA, which happens to be the same travel search provider that Kayak bases its results on. And, really, just about everyone else.

Of course, look, right now there’s not going to be huge, huge variations in the results from these different sites. Most of them use ITA, and every day there’s one less airline, so there is a limit. Granted, the next generation of travel sites will (like everything else on the Web) eventually offer a far more personalized/tailored search experience, better deals, will be more intuitive and mobile, rather than bland, desktop-first, commoditized product experiences.

But until then, this really comes down to the interface. It’s all about who can offer the fastest search and the most options/permutations for travel search in the most simple layout. These companies make money on lead-gen, but really they should look and act like smart CRM tools. And just because Google owns search, doesn’t mean it’s going to own travel search. It’s an easy case to make, but there are also all kinds of competitive advantages in not being Google, focusing purely on travel search and the experience, discovery of travel, and focusing on the mobile piece.

Sarah wrote a great summary of Kayak today, so we won’t go over the same ground again, but Kayak finally started really paying attention to its mobile products at the end of last year, updating its UI across mobile and Web, and that (along with direct booking) seems like it’s beginning to pay off.

Don’t mean to keep editorializing here, but I’m under the impression that things like travel search will continue to become more and more popular on mobile devices. That changing user behavior isn’t going to suddenly stop. So, when looking at these companies, it makes one feel crazy when one gets the impression that travel companies don’t totally get that — or that they need to be creating meaningful travel profiles for people and doing this intuitively themselves, not relying on the user to hand over their social security number et al. Mobile is already favored over desktops in international markets, and that’s where these companies are going next anyway.

It’s also tiring to see travel companies be slavish to airlines. Yes, we understand why keeping airlines happy is essential to Kayak, but until I see Delta aggregating JetBlue and American’s ticket prices and flight times and sending users off-site when they don’t have competitive offerings, airlines will continue to need sites like Kayak. Maybe that can be some incentive to start focusing more on the end user.

Anyway, that part of the rant is over. As to Kayak’s market cap? It seems pretty fair. It will probably come down a bit in the near term, because, sure, it needs to begin posting larger gains to really feel like a $1B company. But compared to other public travel sites, like TripAdvisor, it doesn’t look bad, it’s just a matter of whether it can continue growing consistently with reduced margins.

Time will tell, but still a great day for Kayak. As it was for Palo Alto (which also went public today) — read Alex’s coverage here. Oh, and also worth mentioning that a continued good showing from these two companies could go along way towards rejuvenating the IPO market, which has struggled since Facebook did a cannonball/bellyflop, removing most of the water from the pool.

Excerpt image from Nasdaq


That’ll Fly: Kayak Closes IPO Day With Shares Up Nearly 30% And Market Cap Over $1.2B

MobiTV Pulls Its IPO: Unfavorable Market Conditions, Or Unfavorable Business Model?

insider-ipo-club

At the end of August, mobile TV and video platform MobiTV filed its S-1 and announced its plans for a $75 million initial public offering. Founded in 1999, the company had been one of the early movers in the movement to bring live and on-demand TV to mobile devices, which led to partnerships with NBC, ESPN, Disney, CBS, and a bunch of other sizable media companies. The company closed over $100 million in outside investment in their time, had partnered with the big four carriers, and revenue was on the rise, so it seemed like a company on the road to a successful IPO, right?

Wrong.

Yesterday, the company essentially withdrew its public offering, citing “unfavorable market conditions.” Yes, in the wake of the Facebook IPO debacle, some companies got cold feet, and others would say it put a “freeze” on the IPO market, especially for tech companies.

However, IT service management company ServiceNow had, by most accounts, a successful IPO at the end of June. What’s more, travel search engine Kayak is moving forward with its plans to IPO, recently pricing shares between $22 and $25. The travel search engine has seen its IPO delayed on a number of occasions (it originally filed for an IPO in 2010), and its CFO left to pursue other projects, even joining the advisory board of a competing, next-gen flight search startup.

Certainly, Kayak still relies on ITA for its flight inventory and questions have been raised about the sustainability of its model, as next-gen competitors emerge and focus on personalization, granularity, and the world beyond price comparison. However, in the first quarter of 2012, Kayak saw year-over-year revenues increase 39 percent to $73 million and, as Sarah wrote last week, the company has been focused on product advancements, launching a redesigned iPad app, a new website UI, a more universal consumer experience, direct booking, and ramping up its mobile experience.

Palo Alto Networks is also on course to IPO soon, recently pricing its public offering between $34 and $37 a share, as it plans to sell 6.2 million shares. At the top of the price range, its valuation could reach $2.5 billion.

If these companies IPO successfully, it will go a long way towards warming that “freeze” in the IPO market. And, by all accounts, these two companies will get there — and fairly soon.

Which then raises the question, is MobiTV’s withdrawal of its IPO a result of a horrid IPO market, or something else?

Well, the fact of the matter is that, as Ryan wrote at the time of its initial filing, things didn’t look too pretty for MobiTV. It actually kind of makes you wonder what the company was thinking.

In its most recent S-1 amendment, MobiTV admits that it has a “limited operating history and a history of losses.” Really, the company has yet to turn a profit, taking a loss for the past three years. In 2008 through 2011, MobiTV showed losses of $25 million, $14.6 million and $14.7 million, and most recently, $11.7 million. Sure, those losses are declining, but it’s still in the red. As of December 31st, 2011, the company had an accumulated deficit of $120 million.

The company depends on four customers for most of its revenue (the four major carriers), and if any of those four were to terminate their relationship with MobiTV the company would be in trouble. It would be hard pressed to replace that revenue source, i.e. the company has few options in terms of supplementary revenue sources. They make this clear in the language of their S-1.

What’s more their customers control end user relationships, pricing and terms, and the market they’re operating in is constantly in flux, fragmented, and extremely competitive. Again, as the company says, “many of our current and potential competitors have greater resources than we do and offerings by over-the-top providers may cause consumers to reduce their demand for mobile content through carrier-branded services.”

Yep. MobiTV’s end users are seeing a growing landscape for mobile content that’s filled with choices, as Netflix and Hulu don’t have to depend on carriers, and that’s where most customers are going at present. Makes it hard to imagine that carriers are going to stick with them in the long run as things get tighter and customers opt for other sources for their mobile content.

What’s more, the company has been seeing its cash deplete at a fairly alarming and consistent rate, and with salary and benefits, it was paying its top five executive just under $3 million. All the while its four carrier customers make up about 96 percent of its revenue.

MobiTV is quickly trying to find its way into some fixes, mentioning strategic acquisitions, international expansion, and investing in R&D and managed services, but it’s hard to see how these lead to better margins — and none of this really makes one feel great about the future of the business model, with the tenuousness of its entire business should one customer choose not to renew its contract.

In some ways, it was a wonder that the company was tapping the IPO market, but we now see that it has decided that wasn’t such a good idea. Whether an IPO is in the cards in the future remains to be seen, but things sure don’t look rosy the way they stand now. Especially in such a rapidly changing and dynamic market.


MobiTV Pulls Its IPO: Unfavorable Market Conditions, Or Unfavorable Business Model?