Thanks to Don’t Tell the Donor we now know that Convio is going public. The EDGAR listing is here. Convio is looking to raise $86 million dollars with the IPO listing in what is arguably the best time to file for a tech IPO since 2000. Here are the juicy tidbits on Convio from the EDGAR Listing:
As of June 30, 2007, we had more than 1,200 active clients.
GetActive had more than 560 active clients as of February 16, 2007. Since completing the GetActive acquisition, these clients have continued using and we have supported the GetActive solution. As of June 30, 2007, we had retained substantially all of these GetActive clients.
Our revenue has increased from $9.0 million in 2004 to $21.5 million in 2006. For the six months ended June 30, 2007, our revenue was $19.0 million. For the year ended December 31, 2006 and the six months ended June 30, 3007, we had net losses of $5.0 million and $5.8 million, respectively.
No one client accounted for more than 5.0% of our total revenue in 2004, 2005 or 2006 or during the six months ended June 30, 2007. We derived 19.8% and 16.8% of our total revenue from our top 10 clients in 2006 and in the six months ended June 30, 2007, respectively.
The historical gross margin of GetActive was lower than our historical gross margin, so the integration of GetActive into our financials has negatively impacted our gross margin. GetActive’s gross margin was lower because GetActive had lower average revenue per client.
And the winners are:
Convio Employee # of shares % Held Gene Austin 1,724,546 4.7% James R. Offerdahl 665,000 1.8% Vinay K. Bhagat 1,435,187 3.9% David G. Hart 242,775 < 1% Randall N. Potts 324,221 < 1%
And this is why I love it when companies go public -- all the cards are on the table now. Congratulations to Gene, James, Vinay, David and Randall, the nonprofit sector's newest high net worth donors! (Just kidding but I've got a charity ball that I'd like you to attend, ok I'm really kidding)
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Some more intersting tidbits:
We have incurred significant losses in each fiscal quarter since inception, and, as of December 31, 2006 and June 30, 2007, we had an accumulated deficit of $39.9 million and $45.8 million, respectively. We expect to incur significant costs and operating expenditures as we develop and expand our operations and as we continue to integrate GetActive.
We host our solution and serve all of our clients from two third-party datacenters, one located in Austin, Texas and the other in Sacramento, California. Neither datacenter is currently configured to provide failover services in the event services at the other facility are interrupted. Any interruptions or problems at either datacenter would likely result in significant disruptions in our solution hosted at such site.
Ouch! So even if they raised $86 million, it would just erase the recent debt. Interesting. They also should fix that datacenter problem as well.
Who cares. Seriously, I’m too busy to care.
What I want to hear from them is how they are going to give me more and better tools and whether or not these guys (or any vendor for that matter) can service my needs at a price we can afford.
I’m selfish that way I guess.
Alan, not quite right; the $86MM IPO won’t be used to erase debt; in fact, Convio has relatively little indebtness-LT obligations are a bit over $2.6MM.
The accumulated deficit was financed by shareholder equity (i.e., the outside investors), not debt. And those two numbers (from 2006 and 2007) shouldn’t be added together; $45.8MM represents the accumulated amount they’ve lost over their history, as of 6/30/07, which is over $5MM more than it was in Dec 2006.
Aha! Thanks for the comment, Dan. I’ve been told that S-1 filings are kinda tricky now I know a little bit more about why.
What I’m still trying to figure out is whether or not GetActive was a good thing for Convio to buy. They seem to have take a bit of a loss in order to gain the “right” to cross-sell Convio products to GetActive users. Dan, do you have any comments on that issue?
I am surprised that no one has commented about Sheeraz Haji leaving Convio. I think that says something about what happened to GA. Time to cash out and move on I guess. GA customers are not so lucky.
Yeah, there was very little comment on Sheeraz Haji leaving in the blogosphere. I didn’t even bother to post the article about it. Isn’t this what is supposed to happen when you sell your company?
Bhagat told the world via the Austin Business Journal that “he expects a positive cash flow by the latter half of next year.”
Yes, that statement was made in 2001! Meaning they should have been making profits over 5 YEARS ago not adding to the Red.
Now, I read $50,000,000.00+ in debt and losing more each day!
From the Austin Business Journal (Friday, March 30, 2001):
http://austin.bizjournals.com/austin/stories/2001/
Bhagat says he and Dave Crooke, co-founder and chief technology officer, “have always taken a conservative approach. We achieved a lot with our first round. Our objective is to be cash-flow positive so we don’t need additional rounds of financing.”
Bhagat says he expects a positive cash flow by the latter half of next year.
Major security issues, wrong direction, and major debt.
My question is why would anyone invest in this company after the IPO?
Salaries revealed – No wonder they company is broke:
http://www.investor.reuters.com/business/BusCompanyBusLeaders.aspx?ticker=CNVO.DF&symbol=CNVO.DF&target=%2fbusiness%2fbuscompany%2fbuscompfake%2fbuscompbusleaders%2fofficers
The URL above just redirects to http://www.reuters.com/finance.
Yeah, a few are going to “get rich” off the non-profit idea and laugh at their VC partners.
In the six months ended June 30, Convio’s losses widened to $7.5 million from $6.2 million in the prior-year period.
Why would anyone in the right mind buy the stock?
Too many other companies out there doing much better.
Oops, not so fast:
- Convio on IPO: not just yet
- Convio pulls IPO
Ouch!
@foo: Yeah I already reported on their S-1 withdrawal. It sux because I was hoping to see more transparency in Convio’s operations. Nothing like a public filing to learn more about a company.