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Company Links |
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Major Stock Holders
(Prior To
Offering) |
Name |
Class A |
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BAVP VII, L.P |
12.36% |
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Hummer Winblad Venture Partners V, L.P. |
23.39% |
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John R. Pestana |
13.16% |
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Joshua G. James |
15.22% |
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Mark P. Gorenberg |
23.39% |
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Major Stock Holders
(After Offering) |
Name |
Common Stock |
Class A |
Class B |
Class C |
Class L |
ADS |
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BAVP VII, L.P |
0% |
9.98% |
0% |
0% |
0% |
0% |
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Hummer Winblad Venture Partners V, L.P. |
0% |
18.89% |
0% |
0% |
0% |
0% |
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John R. Pestana |
0% |
8.53% |
0% |
0% |
0% |
0% |
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Joshua G. James |
0% |
10.11% |
0% |
0% |
0% |
0% |
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Mark P. Gorenberg |
0% |
18.89% |
0% |
0% |
0% |
0% |
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Business Environment |
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The Internet has fundamentally altered the way businesses and consumers purchase goods and services. In 2004, businesses generated over $295 billion just from e-commerce sales to consumers and spent over $25 billion on online advertising and marketing, according to IDC and eMarketer, respectively. The Internet has redefined many business processes and has created opportunities for new online businesses as well as for existing offline businesses seeking to capitalize on online initiatives. Businesses are investing in innovative online initiatives to increase sales, improve customer service, enhance brand awareness, decrease time-to-market for their offerings, reduce fulfillment costs and increase operational efficiency. In addition to generating online sales, these online initiatives are increasingly designed to have and have had a direct impact on offline business. According to Jupiter Research, the amount of offline United States retail sales influenced by online channels was nearly six times that of online retail sales and over 80% of online consumers research offline purchases online.
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Company Strategy |
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The Company is the leading provider of online business optimization software, which its customers use to manage and enhance online, offline and multi-channel business initiatives. |
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Product/Services Portfolio |
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The Company’s online business optimization software consists of SiteCatalyst, its flagship service, and its Data Warehouse, Discover and SearchCenter services. These services enable the Company’s customers to capture, store and analyze information generated by their websites and other sources and to gain critical business insights into the performance and efficiency of marketing and sales initiatives and other business processes. The Company’s services provide customers with real-time access to online business information, the ability to generate flexible reports using real-time and historic information and the ability to measure, automate and optimize critical online processes.
The Company’s core service offering is SiteCatalyst, which provides a flexible, customizable interface to analyze and manage the information the Company collects regarding interactions on its customers’ websites.
Data Warehouse provides customers with access to all of their data for real-time reporting analyses of historical and current information. Discover supplements Data Warehouse by providing customers with a sophisticated service to perform deeper analysis and segmentation of the customer data captured in the customer’s data warehouse. Data Warehouse stores a comprehensive record of clickstream events and transactions that have occurred on the Company’s customers’ websites. The Company’s customers can directly access Data Warehouse to design reports and run queries according to their specific needs. The Company’s customers can also receive direct data feeds from the data warehouse to incorporate into their offline systems.
Discover provides a view into Data Warehouse’s data store and allows customers to quickly create a wide variety of visitor segments and analyze those segments across various periods, and at various levels of detail.
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Investment Analysis |
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Total revenue was $42.8 million for the year ended December 31, 2005 and $20.6 million for the year ended December 30, 2004, an increase of 108%.
Cost of revenue was $20.5 million for the year ended December 2005 and $8.7 million for the year ended December 2004, an increase of 134%.
Sales and marketing expenses increased $15.4 million from 2004 to 2005.
Research and development expenses increased $4.6 million from 2004 to 2005
Interest income increased $0.5 million from $64,000 for the year ended December 31, 2004 to $392,000 for the year ended December 31, 2005.
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Income Data (Thousand $ Except EPS) |
| Year |
Revenues |
Costs |
Oper Income |
Taxes |
Net Income |
EPS |
| 2003
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8,654 |
5,904 |
273 |
44 |
143 |
0.01 |
| 2004
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20,566 |
14,166 |
-2,332 |
0.00 |
-1,318 |
-0.05 |
| 2005
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42,804 |
39,730 |
-17,385 |
15 |
-17,441 |
-0.64 |
| 2006
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16,436 |
13,003 |
-3,345 |
27 |
-3,406 |
-0.24 |
| *As of period ended March 31, 2006
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Balance Sheet Data
(Thousand $) |
Year |
Cash |
Acct Recv. |
Inventory |
Total Cur Assets |
Total Cur Liability |
PPE |
Total Assets |
LT Debt |
SH Equity |
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2004 |
8,927 |
5,881 |
0.00 |
15,608 |
17,030 |
14,632 |
32,768 |
0.00 |
-13,413 |
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2005 |
22,196 |
12,325 |
0.00 |
35,241 |
34,050 |
27,517 |
73,051 |
0.00 |
-30,266 |
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2006 |
18,550 |
15,979 |
0.00 |
35,462 |
38,978 |
30,417 |
76,976 |
0.00 |
-33,117 |
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*As of period ended March 31, 2006
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| Cash
Flow Summary
(Thousand $) |
Year |
Net Cash-Ops |
Net Cash-Inv |
Net Cash-Fin |
Net Change |
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2003 |
2,442 |
-1,382 |
810 |
1,870 |
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2004 |
3,966 |
-14,838 |
17,612 |
6,740 |
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2005 |
-4,789 |
-18,852 |
36,910 |
13,269 |
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2006 |
-2,573 |
-5,263 |
4,190 |
-3,646 |
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*As of period ended March 31, 2006
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- Avoid 
- Value Gap 
- Long-Term Growth 
- Long-Term Value 
