Digital marketing company MaxPoint Interactive reported Wednesday that revenue rose 87 percent to $28.7 million in the first quarter, marking a strong start to its debut as a publicly traded company.
Net revenue, minus certain costs, rose 90 percent to $16.8 million.
“We continue to experience solid growth at MaxPoint,” Brad Schomber, the company’s chief financial officer, said during a conference call with analysts. He noted that the spurt in revenue was “a balance of new customers and increased spending by existing customers.”
However, MaxPoint’s net loss widened to $8.1 million, or 90 cents per share, versus a loss of $4.2 million a year ago.
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The Morrisville-based company, which was founded in 2007 and has 340 employees, went public in March.
CEO Joe Epperson said during the call that the IPO was “a natural step in the evolution of the company” and that being a publicly traded company was helping it to further solidify its relationship with its largest customers.
All of the top 20 national advertisers and 10 largest ad agencies, as ranked by Advertising Age, are MaxPoint customers.
The company’s software enables national brands to target neighborhoods where consumers are likely to buy a particular product – based on factors such as demographics and income levels – and then deliver online ads to them. Those ads can be used to point consumers to local stores that carry the product.
MaxPoint had created the digital equivalent of ZIP codes by dividing the nation into thousands of neighborhoods, which it calls Digital Zips. It recently expanded from 34,000 Digital Zips to 44,000.
The company “uniquely addresses the challenges national advertisers face in executing local advertising campaigns across multiple products and cities at distinct locations with different retailers,” Needham & Co. analyst Kerry Rice wrote in a recent research note.
Rice also noted that advertising via MaxPoint costs a fraction of what it costs to advertise in newspapers, radio and direct mail – its main competition in the local advertising arena.
MaxPoint has 529 “enterprise customers” that spent more than $10,000 over the past 12 months, including 50 that were added since the beginning of the year.
MaxPoint released its quarterly results after the markets closed on Wednesday. Earlier in the day, its shares closed at $8.46, up 19 cents.
MaxPoint went public at $11.50 per share in March but its shares haven’t reached that level since then. Nevertheless, three of the four Wall Street analysts that follow the company rate its shares a “buy” or its equivalent, including Rice.
The company projects that net revenue for the second quarter will be between $21.2 million and $21.6 million. Net revenue for the year is expected to between $91.5million and $93 million.