Borderfree (NASDAQ: BRDR) provides cross-border ecommerce software and services for retailers and consumer brands to sell their products in over 100 countries. Founded in 1999, the company, formerly known as FiftyOne until 2013, generated $110 million in revenue in 2013, up from $81 million in 2012, and posted near break-even results for both years. Borderfree debuted on the NASDAQ on March 21, 2014 at an opening price of $16 per share, in a 5.8 million share IPO, which raised roughly $86 million for the company. The IPO was led by Credit Suisse, RBC Capital Markets, Pacific Crest, Canaccord Genuity, Needham & Company, and William Blair. At a recent share price of $15, the company’s market cap. is roughly $450 million. Borderfree offers software and services that enable US brands to sell their products in foreign markets, and handles the localized pricing, payment processing, customs clearance and brokerage, and landed cost calculations, among other functions. Over 90 customers ran 150 ecommerce sites utilizing Borderfree as the end of 2013. Borderfree boasts an impressive client list, which includes Dillards, Under Armour, Pac Sun, Aeropostale, Pottery Barn Kids, Barney’s, Bloomingdale’s, Guitar Center, Cabella’s and others. Borderfree’s challenges include scaling its business model from break even to a sustainable level of profitability. The company generates revenue in part as a percentage of its customers’ gross international sales volume. The company’s top three customers accounted for 25 percent of sales in 2013, and the top 10 customers accounted for 60 percent, although none accounted for 10 percent or more. Following its IPO, BRDR has a strong balance sheet with over $120 million in cash and no debt, and appears, on paper, to have bright prospects ahead.
Tag Archives: internet investment research
Everyday Health (NYSE: EVDY)
Everyday Health (NYSE: EVDY), founded in 2002 and based in New York City, operates an ad-driven, online health information portal that is utilized by consumers, physicians, healthcare professionals, and health plans. After posting revenue of $155 million and a loss in 2013, EVDY debuted on the NYSE on March 27th at an opening price of $14 per share, in a 7.1 million share transaction that raised roughly $70 million for the company, and about $23 million for selling shareholders. The transaction was led by five investment banks: J.P. Morgan, Credit Suisse, Citigroup, SunTrust, and Stifel Nicolaus. At a recent share price of $17.76, the company’s market cap. was roughly $530 million.
Like its key competitor, WebMD (NASDAQ: WBMD), EVDY’s primary path to monetization is through online advertisements, which account for roughly 87 percent of sales. Like WBMD, EVDY targets the global pharmaceutical industry, and 23 of the top 25 global pharma companies advertise on its websites. Among the most prominent of EVDY’s websites is Medpage.com, which it purchased three years ago. MedPage Today is a daily online news service, geared to physicians and healthcare professionals. The company estimates that one-third of US physicians engage with its websites on a monthly basis.
EVDY claims that average monthly mobile app visits to its operated properties were 37 million in 2013, though it is unclear whether these represent unique visitors. In addition to its consumer websites, EVDY operates seven YouTube shows focused on health and wellness issues. Since closing its IPO, Everyday Health reported its first results as a publicly trade company. The most intriguing aspect of the report was the company’s ability to reduce its accounts receivable days sales outstanding from 145 days to 92 days, an encouraging sign of progress. Following its IPO EVDY has an acceptable balance sheet, which features nearly $90 million of cash on a pro forma basis, as a result of its IPO, but also more than $70 million in bank debt, which yields a net cash position of $17 million. Consensus estimates call for revenue of $180 million in 2014 and EPS of $0.41.
To see how Everyday Health screens against its internet peers in the Battle Road IPO Review internet coverage universe, please contact: info@battleroad.com.
.