Alan Meckler - ShutterFly Makes No Money, Reminds Me of IPOs of the 1990-2000 eraposted by MR WAVETHEORY at 10/04/2006 07:53:00 PM
The company is moving in on $80 million a year of revenue and makes no money. The business is fiercely competitive. And today, after an IPO, the company has a market cap of over $300 million.
This IPO reminds me of IPOs of the 1999-2000 era. In those days companies went public on ideas with no revenue. Shutterfly has revenue but I would doubt that it can ever be profitable. I can understand why the prospectus uses the "joy" word after studying the financials and the business model.
As a CEO of a public company I realize that this post might draw criticism. I am used to criticism and realize that if my own company's financial results do not satisfy The Street then I will be condemned and reminded of this post. However we do make money - lots of it. And our market cap is now significantly lower than the market cap of Shutterfly (Nasdaq:SFLY).
It sounds alot like sour grapes. The truth is that Jupitermedia is not growing that fast either.
I wrote earlier about ShutterFly in the post Will the ShutterFly IPO Fly? in which I wrote that it wouldn't. ShutterFly broke its IPO price just two days after the offering.
I wonder if Meckler is trying to say that a private equity firm should make a bid for Jupitermedia. He won't have trouble stirring interest if that's the case. The buyout guys have bilions