YuMe Files for $65M IPO; Will it Fare Better than Tremor?
As was widely predicted, online video advertising company YuMe has filed an S-1 indicating its intent for an initial public offering (IPO) raising $65 million through the sale of common stock. Citigroup and Deutsche Bank are the book-runners for the offering, meaning they will be the managing underwriters. The company will list under the symbol YUME on the New York Stock Exchange.
This is the year of the online video advertising IPO, as Tremor Video has already gone public and Adap.tv is still expected to do so. Perhaps the biggest challenge for YuMe will be convincing Wall Street that it's not Tremor. While Tremor's IPO was much hyped prior to launch, its share prices have fallen from the IPO price of below $11 to below $8.
As StreamingMedia.com readers know, YuMe has been aggressive and innovative in delivering video ads to new markets. In January, for example, it debuted the tabbed Click-to-Ngage format for connected TV ads, while in July, 2012, it created the Mobile Flip ad unit for tablets and smartphones. YuMe acquired audience targeting and measurement company Crowd Science in January, to improve its ability to deliver ads to a receptive audience.
YuMe is in the black, showing a profit of $6.3 million in 2012, improving from its $11.1 million loss the previous year. It listed revenue of $116.7 million in 2012, a 70 percent increase over 2011. The company will use proceeds from the IPO as working capital, and perhaps for further acquisitions.
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Using the JW6 Ads Platform, content owners will be able to gather audience data and tap into YuMe's network to serve targeted ads.
While it's not yet profitable, the outlook is strong for Tremor, which sees big growth coming to online video advertising.