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October 04, 2006

Alan Meckler - ShutterFly Makes No Money, Reminds Me of IPOs of the 1990-2000 era

posted by MR WAVETHEORY at 10/04/2006 07:53:00 PM
Alan Meckler, CEO of Jupitermedia Corporation (Nasdaq JUPM), compares his company to ShutterFly, Inc. (Nasdaq SFLY) and seems to be posturing that Jupitermedia ought to be worth more than ShutterFly, which makes no money (via).

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

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2 Comments:

Anonymous Martin said...

Alan Meckler is about the sharpest thing on the internet though, so even if they are not growing that fast he has never really missed to see opportunities and take them before anybody in the mainstream internet does.

9:55 AM  
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