UPDATE – TubeMogul on Thursday morning filed an amendment to its stock offering with the Securities and Exchange Commission significantly lowering the offering price to $7 to $8 a share from its stated $11 to $13 a share offering as of Wednesday.
In its amendment to its SEC Form S-1 filed July 17, TubeMogul states:
“We expect the public offering price to be between $7.00 and $8.00 per share. Currently, no public market exists for the shares. We intend to list the common stock on The Nasdaq Global Select Market under the symbol “TUBE.” ”
Planning to sell 6.2 million shares, TubeMogul should bring in about $47 million.
Neither the amendment nor company officials would say why the offering price was lowered, with officials citing the mandatory “quiet period” before an offering. The amendment states – as did previous versions – that “We are an “emerging growth company” as defined in the Jumpstart our Business Startups Act of 2012. “Investing in the common stock involves risks that are described in the “Risk Factors” section beginning on page 11 of this prospectus.”
It cites the same “Risk Factors” as its previous S-1 documents — chiefly that they company has not yet made a profit and it cannot predict when or if it will make a profit in the future.
TubeMoguls’ revenues have been doubling year over year and it has developed a digital advertising platform that lets companies manage and measure digital video advertising, a market defined as growing nearly 300 percent a year as video advertising moves to the Internet and away from analog television.
Its workforce has grown five-fold in three years from 57 employees to 280 employees and the company cites that rapid grown as a risk factor, “if we fail to manage growth effectively.”
Deeper in the prospectus it states that 95 to 99 percent of its revenues “came from advertising served to personal computer users” and that its future performance will be “dependent in part” upon the continued growth of digital video and its ability to grow revenues in mobile video and social video and TV video on demand.
July 16 – An Emeryville startup, video ad company TubeMogul, is expected to go public on Friday, offering stock at a target price of $11 to $13 per share in hopes of raising $93 million, according to a filing with the Securities and Exchange Commission. The timing is estimated on IPO Scoop.
That would make it one of the largest IPOs from an Oakland area company.
Started by two UC Berkeley Haas Business School alums, Brett Wilson, CEO, and John Hughes, president of products, TubeMogul describe its business as a video ads platform. “The products, tools and features within the platform make programmatic video planning, buying and measurement a reality for brands and agencies of any size,” says the company’s prospectus.
It solves a problem in the video ad space by providing a way to see the impact of an ad more clearly.
Wilson and Hughes founded TubeMogul in 2007 while still MBA students at Haas and funded its launch with winnings from a business plan contest held by the Lester Center for Entrepreneurship at the school.