Another on-demand company, the venture capital backed Responsys, Inc., has filed an S-1. The company provides software that enables marketers to design, execute and manage email campaigns.
Responsys website
Responsys SEC filings
From the company’s S-1, filed December 23, 2010:
Responsys is a leading provider of on-demand software that enables companies to engage in relationship marketing across the interactive channels that consumers are embracing today—email, mobile, social and the web. The Responsys Interact Suite, the core element of our solution, provides marketers with a broad and powerful set of integrated applications to create, execute, optimize and automate marketing campaigns across the key interactive channels. Our solution is comprised of our on-demand software and professional services, all focused on enabling the marketing success of our customers. We sell primarily through a direct sales force and target enterprise and larger mid-market companies that seek to implement more advanced marketing programs across interactive channels. For the years ended December 31, 2007, 2008 and 2009, our total revenue was $37.6 million, $50.1 million and $66.6 million, respectively, representing year-over-year growth of 33% in 2008 and 2009. For the nine months ended September 30, 2010, our total revenue was $63.4 million, representing 36% growth over the same period in the prior year. As of September 30, 2010, we had 266 customers of varied size across a wide variety of industries, including retail and consumer, travel, financial services and technology.
Marketing is undergoing a significant shift as rapid adoption of digital technology has dramatically changed consumer behavior. Interactive marketing channels, including email, mobile, social and the web, are rapidly supplanting traditional media channels as consumers’ primary source of entertainment and information. This has created both an opportunity and an imperative for companies to market to their customers by engaging them across all of these interactive channels. According to Forrester Research, Inc., or Forrester, U.S. spending on interactive marketing is expected to increase to nearly $55 billion and represent 21% of all marketing spending by 2014, as marketers shift dollars away from traditional media toward interactive channels. U.S. interactive marketing spend on email, mobile and social media, the primary interactive channels currently used for relationship marketing, is expected to grow from $2.4 billion in 2009 to nearly $6.5 billion by 2014, representing a compound annual growth rate of 22%.
Interactive channels enable marketers to substantially improve the effectiveness of their relationship marketing efforts by executing more relevant and timely campaigns to their customers and known prospects. However, this shift to interactive marketing has also caused the execution of marketing campaigns to become increasingly complex, real-time and dependent on technology. We believe that for marketers to capture the opportunity provided by interactive channels, they need a solution built for relationship marketing across those interactive channels. Our Interact Suite is a software-as-a-service, or SaaS, platform that empowers relationship marketers to effectively execute permission-based campaigns across the key interactive channels. It is comprised of multiple tightly integrated applications, built on an open and flexible platform, which enables our customers to integrate and leverage data from multiple sources to ensure relevant and timely marketing.
Underwriters: Morgan Stanley, William Blair and Company, JMP Securities, Credit Suisse and Pacific Crest Securities
Estimated (preliminary) gross proceeds: $60,000,000
Revenues
Nine months ending September 30, 2010: $63,399,000
Year ending December 31, 2009: $66,643,000
Year ending December 31, 2008: $50,114,000
Year ending December 31, 2007: $37,604,000
Operating profits (loss)
Nine months ending September 30, 2010: $5,845,000
Year ending December 31, 2009: $9,764,000
Year ending December 31, 2008: $3,401,000
Year ending December 31, 2007: $5,237,000
Net profit (loss)
Nine months ending September 30, 2010: $3,105,000
Year ending December 31, 2009: $5,886,000
Year ending December 31, 2008: $20,447,000
Year ending December 31, 2007: $5,426,000 |
