Email marketing giant **ExactTarget** is poised to enter the stock market, having filed its S-1 for an IPO to raise as much as $100 million. This public filing offers a rare glimpse into the company’s robust financial performance and strategic vision from this and the previous year, without revealing any major surprises.
Notably, ExactTarget previously filed for an IPO in 2007, seeking up to $86.25 million. However, this offering was subsequently withdrawn in May 2009, a decision attributed to “continued weakness and uncertainty in the equity and credit markets” during the global financial crisis.
As a prominent SaaS (Software as a Service) provider, **ExactTarget** has demonstrated remarkable resilience and growth, achieving 43 consecutive months of expansion. This impressive trajectory aligns with the broader trend of other email service providers and SaaS companies exploring public offerings.
For the first nine months of 2011, **ExactTarget** reported impressive revenues of $148 million. Despite this strong revenue performance, the company posted a net loss of $29.3 million. This strategic loss is explained by substantial ongoing investments in innovation, aggressive market share expansion, and significant overseas growth initiatives, as noted by the Indianapolis Business Journal.
In the past two years alone, **ExactTarget** has strategically acquired three companies: mPath, cotweet, and Keymail marketing, bolstering its capabilities and market presence. Furthermore, the company expanded its workforce by 500 employees and successfully launched email marketing operations in the UK and Australia, signifying its global ambitions.
Key Statistics from ExactTarget’s IPO Filing
Delving deeper into the S-1 filing, several key statistics highlight **ExactTarget’s** operational strength and market reach:
- Extensive Client Base: Over 4,600 direct organizational clients.
- Partner Network: More than 500 reselling marketing service providers.
- Global Workforce: A dedicated team of 1,100 employees.
- R&D Investment: A significant annual research and development investment of $40 million in 2011, underscoring its commitment to continuous innovation.
- Robust Infrastructure: Operates through two third-party data centers, strategically located in Indianapolis and Las Vegas.
- Comprehensive Professional Services: Offers a wide range of professional services, including training, implementation, integration, deliverability, campaign services, and strategic consulting.
- Sales and Marketing Power: A substantial sales and marketing team comprising 401 employees.
ExactTarget’s Diverse Client Portfolio
**ExactTarget’s** revenue streams are broadly diversified across a vast array of clients, spanning from large enterprises to nimble small businesses. Its clientele represents numerous sectors, including retail and ecommerce, media and entertainment, travel and hospitality, financial services and insurance, technology, daily-deal and flash-sale platforms, and marketing service providers. Critically, no single client accounts for more than 5% of its total revenue, indicating a healthy and diversified business model.
The specific mention of daily deal sites within their client breakdown is particularly insightful, given their explosive growth in the preceding year. This includes the high-profile IPO of Groupon, a flagship in this sector, which, despite its success, faced considerable scrutiny regarding its valuation and long-term sustainability.