Following rival video ad platform Tremor’s IPO last week, YuMe filed its S-I paperwork for a $65 million IPO.
The company provides a digital video advertising platform that targets online video to the most relevant audiences based on individual user demographics. Every ad campaign is analyzed for data to develop strategies to perfect that connection.
YuMe’s latest numbers make it look like a good sell. It earned $116.7 million in revenue in 2012, a 70 percent increase over the previous year. In the same time period, gross margins increased from 38 percent to 46 percent at a profitable net income of $6.3 million. The previous year, YuMe reported a loss of $11.1 million.
As online streaming grows in popularity, consumer eyeballs are abandoning TV and moving towards digital platforms like Netflix, Amazon, and other streaming video providers. Unlike TV, the Internet ads can measure so brands can gauge their effectiveness and better target the right audience.
The online video market is predicted to more than double by 2017, from $4.14 billion in 2013 to $9.06 billion, according to eMarketer, the market research firm.
Serving 64 of the top 100 advertisers, YuMeng helps brands adapt to the shift towards digital platforms. The company saw over 257 monthly uniques for the month of May. Over 8 billion ad impressions were delivered last year.
Rival video ad platform Tremor went public last week, but its price has faltered since then, dropping from its opening price of $10 to $11 to its current price of $8. YuMe has more impressive numbers, which may make it a better sell. It has far better revenue, net income and gross margin potential. Online video is taking off, and it’s only a matter of time before a truly impressive public offering comes out of the space.
Founded in 20054, YuMe has raised a total of $70 million from SV Angel, Accel Partners, e.ventures, Khosla Ventures, DAG Ventures, Menlo Partners, Intel Capital, Samsung Ventures, Translink Capital and WestSummit Capital.
YuMe applied to list its stock on the New York Stock Exchange under the symbol YUME.