In its second-largest acquisition, Amazon buys the company for $970 million.
Record FY2010 results for SAAS digital marketing software firm.
Seattle, WA – January 31, 2011–Mercent, a leading provider of online performance marketing technology and services for retailers, announced today FY2010 financial results and business highlights, reporting the strongest annual revenue and profitability in company history.
“FY2010 is our fifth year of consecutive accelerating revenue growth for Mercent,” commented Eric Best, Mercent CEO. “We finished the year with a solid fourth quarter 2010, completing our most successful year to date. Mercent’s core retail performance marketing business continued an upward growth trajectory, increasing GAAP revenues by more than 70% over FY2009 to achieve a new top line record. Accordingly, growth was driven by accelerating new customer adoption of our Mercent Retail SAAS technology and performance marketing services along with expanding advertising reach and improved retailer performance through our software platform. Additionally, Mercent introduced new SAAS services including automated product SKU price optimization, social shopping tools for retailers, and dynamic retargeting ad optimization tools -- all fueling revenue growth and ROI for our retail clients.”
Focused on ensuring retailers are visible, competitive and profitable wherever consumers shop online, Mercent delivered another year of positive business performance representing record gross merchandise value (GMV) sourced and tracked for its portfolio of tier-one, brand name retailers. Operational highlights are as follows:
Achieved record consolidated GAAP revenues in FY2010
- 70% (1.7X) year-over-year GAAP revenue growth for FY2010
- 5th consecutive year of annualized GAAP revenue growth exceeding 70%
- 5th consecutive year of accelerating annualized GAAP revenue growth
Achieved record aggregate client gross merchandise value (GMV) in Q42010 and FY2010
- 172% (2.72X) year-over-year GMV growth in FY2010
- 5th consecutive year of annualized GMV growth exceeding 75%
- 5th consecutive year of accelerating annualized GMV growth
Expanded enterprise retailer client base with the addition of new tier-one retail brands including Signature Styles, The Land of Nod, DSW Inc., Welspun USA, and many others.
Expanded online marketing reach and revenue-generating capabilities.
- Introduced new profit-generating Mercent Retail programs for Google, Amazon, eBay, Microsoft Bing and others.
- Introduced new online retail sales channels, including the availability of social shopping merchandising via Twitter, Facebook, MySpace, Ning, Bebo, and other social sites.
- Delivered new, innovative and revenue-generating Mercent Retail platform capabilities, including the widely adopted Mercent Retail Price Optimization Engine, and expanded support for the Google Affiliate Network, Google Product Extensions to AdWords, and Google Product Listing Ads.
To accelerate software engineering investment, expand services, and accommodate client portfolio growth, increased company full-time head count in FY2010 by 76%.
Best continued, “Entering FY2011, Mercent is well-positioned to gain market share and profitably grow the company. Our business model allows to us to remain steadfastly focused on our customers’ online sales and marketing ROI while continuing to further invest in innovative technology and professional services capabilities.”
Industry veteran and Mercent investor Steve Hamerslag commented, “Mercent has performed exceptionally well in 2010, with performance that exceeds client, market and investor expectations. We firmly believe this company has the right business model, management team and technology to lead the digital marketing industry in retail. We look forward to continued progress, and ongoing success of our growing retail client base.”
Benefits of Mercent Retail
Mercent Retail offers powerful benefits for retailers wanting to maximize their online advertising and sales performance that include:
Visible products and offers across a diverse set of digital channels including online marketplaces like Amazon and eBay; shopping engines (CSEs), product ad platforms like Google Product Search (GPS) and Google Product Listing Ads (PLA), social shopping, shopping search, and affiliate networks through in-depth data feed management capabilities.
Competitive merchandising and promotional offers, enabled through powerful automated content and offer management capabilities, and robust competitive intelligence and price optimization tools.
Profitable advertising and selling programs, enabled through deep retail analytics that highlight the products, categories, brands, promotions, ads, and channels contributing most to retailer ROI – and tools that allow retail marketers to take action on these insights.
Additional information regarding the Mercent Retail shopping feed and product feed solution; Mercent Retail Social shopping service; Mercent Performance marketing service; and/or the company’s complete list of online marketing channels in the Mercent Shopping Network are available at www.mercent.com.
Mercent ensures the world’s leading retailers are visible, competitive and profitable wherever consumers are shopping online. Through its award-winning Mercent Retail™ SAAS technology and Mercent Performance™ professional services, Mercent helps the world’s most successful online merchants including 1-800-Flowers, GUESS?, L'Occitane USA, REI and others, maximize their online shopping channel marketing performance to drive inventory velocity, customer acquisition, revenues and profits. Supported online shopping destinations include Amazon.com, Google, eBay, Bing, comparison shopping engines (CSEs), affiliate networks, social shopping sites, and paid search and display advertising campaigns. The company was founded by a seasoned team of Amazon.com veterans and is a venture-funded company based in Seattle, WA. For more information, visit www.mercent.com.