Yodle Said to Consider Postponing IPO Until 2015Serena Saitto
Yodle Inc., a marketing software company that filed to go public in July, is considering postponing its initial public offering to 2015 because of volatile market conditions and instead plans to raise private financing, according to people with knowledge of the situation.
The New York-based company may try to raise about $30 million at a valuation of $500 million, said one of the people, who asked not to be identified because the decision isn’t public.
“We are in registration and can’t share any information about the IPO,” Radley Moss, Yodle’s director of corporate communications, said in an e-mailed statement. “We do not comment on speculation about our financing.”
Cloud-storage provider Box Inc. and mobile-security software maker Good Technology Corp. have recently raised private financing and delayed their IPO plans until next year amid turbulence in the stock market, people familiar with the situations have said. Other companies, including online-dating site Zoosk Inc. and Internet domain marketplace GoDaddy Inc., are also watching the markets to decide if they’ll punt their deals to 2015, other people have said. Zoosk filed to go public in April, while GoDaddy filed in June.
If the market keeps fluctuating and the IPO window closes for 12 to 18 months, “it can become very challenging for private companies,” Accel Partners venture capitalist Jim Breyer told Bloomberg News in a recent interview. “I encourage our best companies, which believe they don’t need to raise cash, to do so opportunistically.”
Yodle, founded in 2005, helps local businesses find customers online. The company has raised about $40 million from venture capital firms such as Bessemer Venture Partners and Draper Fisher Jurvetson.
The company filed with the U.S. Securities and Exchange Commission to raise $75 million in an IPO on July 8. According to the prospectus, Yodle’s revenue rose 22 percent from a year earlier to $161.9 million in 2013, while its net loss almost doubled to $10.4 million. Yodle sells subscriptions to its offerings, as well as sales of a Yodle Ads media product.