Tremor Files for IPO, Aims to Raise Up to $86.3M
Online video advertising network Tremor Video filed for an IPO (initial public offering) yesterday, looking to raise up to $86.3 million on the sale of common stock. The move shows the quick growth and maturity of the online video ad space. comScore's video rankings for April, released this week, showed that 13.3 billion video ads were streamed to desktop viewers last month, a record high. comScore listed Tremor as the eighth largest online video ad property for April, and the third largest video ad network (behind BrightRoll and Specific Media).
In its S-1 filing, Tremor pointed to research by eMarketer that online video advertising would grow by 28.9 percent between 2012 and 2016, on a compounded annual basis. That compares to 3.5 percent growth for ad spending overall. The filing also said that Tremor's revenue has grown from $90.3 million in 2011 to $105.2 million in 2012, although it isn't in the black: it lost $21 million in 2011 and $16.4 million in 2012. Tremor has taken in $116 million in funding since it was founded in 2005.
Tremor clients include YouTube, Hulu, and Facebook. Credit Suisse, Jefferies, Canaccord Genuity, and Oppenheimer will underwrite the IPO.
Tremor is planning a road show for investors in the next month. Bloomberg recently reported that YuMe and Adapt.tv are also expected to file for IPOs this year.
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Online advertising leader will use the funds to grow in the U.S. and European markets.