ExactTarget files for an initial public offering of stock
Though the company has yet to set terms, e-mail services provider ExactTarget Inc. has filed for an initial public offering of stock.
The company, which is using the investment banking firms of Thomas Weisel and William Blair to manage the transaction, will use the proceeds for working capital and possibly to make acquisitions.
In 2006, ExactTarget recorded net income of $6.5 million on revenue of $31.8 million vs. a net loss of $1.5 million on sales of $19.7 million in 2005. For the first nine months of this year, net income totaled $2.3 million on sales of $34.1 million, compared with net income of $2.1 million on revenue of $22 million for January through June in 2006, according to the company’s S1 registration filed with the Securities and Exchange Commission.
Through the third quarter, ExactTarget spent $13.8 million, or 40% of revenue, on sales and marketing and $2.4 million, or 7% of sales, on general and administrative expenses. A total of 17% of sales, or $5.9 million, was spent on research and development, according to the company’s S1 registration.
ExactTarget has a diversified business operation. The company’s client base consists of more than 2,800 organizations of all sizes, which included approximately 400 marketing service providers. ExactTarget’s retailing and e-commerce clients include Canadian Tire, Finish Line, Expedia.com and Hotels.com.
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