SEOmoz gone wild

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furfing

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Old news but didnt see it on the forum :

SEOmoz raises $18 million, Brad Feld joining board — and yes, the deal has closed.

The Seattle-based provider of search-engine and social-media optimization software is announcing this morning that it has raised $18 million in Series B funding from Foundry Group of Boulder, Colo., along with one of its original investors, Bellevue-based Ignition Partners.

SEOmoz raises $18 million, Brad Feld joining board — and yes, the deal has closed - GeekWire

http://www.seomoz.org/blog/mozs-18-million-venture-financing-our-story-metrics-and-future

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dchuk said:
their financials are pathetic, they made $18mn last year and profited like $200k
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lol very true - and its not like they just popped up last year either. on the contrary most businesses if given the choice will focus on increasing their revenue stream rather than their profit margins in the begining to keep a steady growth rate.


personally, ive sacrificed my salary for 90% of this year all in the name of fiscal growth and i can truly see it making a difference in the growth of my biz. i had the choice of doing that or being able to post a pic in the "cool car thread" (which now i can) and it has all paid off.


seomoz is a solid product, but i could easily see a product such as MSM beat it out if you kiss the right communities ass and continue on the path that it is now, listening to its usergroup, adapting to algorithm changes etc.
 
I think they said the monthly expense of Linkscape alone is around $300,000/month (hosting/API fees/data costs, etc) and that figure doesn't include the 6 full-timers salary dedicated to Linkscape.

Was surprised to see that low net income number of $261k as well.
 
dchuk said:
their financials are pathetic, they made $18mn last year and profited like $200k
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Without looking at their financials, there is no way to really judge this.

They could have bonus'd down the profit to avoid double tax.

The principals could be taking profit as straight salary.

They could be reinvesting for growth.

Real businesses have lean periods too. They lose money sometimes.

I suspect most of the guys here have never run a multi-million dollar business. I can tell you from some experience, the sun doesn't shine every day.
 
I might be reading chart wrong but 13k subscribers and 11.5 mil revenue for 2011, doesn't that sort of imply they retain their average subscriber for less than 1 month worth of revenue? However they're accounting for subscribers, they had 5k to account for in 2010 so they had a net gain of 7k but less than 50% more revenue...and then in their projection they'll increase subscribers by 25% but magically nearly double their revenue? WTF who would buy into that?
 
amateursurgeon said:
LOL @ the armchair CFOs here. Without looking at the balance sheet and cashflow statement, revenue / profit figures don't mean very much at all.
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Silly rational person. This is wickedfire we have no need for your logic or facts.
 
$18mil revenue and $200k profit, yeah that must be an overvaluated company. Because I'm sure Facebook, Google, Twitter, Amazon, and every other billion dollar company all had ridiculously high profit margins when they were young growing companies.</sarcasm>
 
JCash said:
I might be reading chart wrong but 13k subscribers and 11.5 mil revenue for 2011, doesn't that sort of imply they retain their average subscriber for less than 1 month worth of revenue?
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11.5 million into 13k is an average customer value of $884 give or take.

They have plans for less than that.

But you do have a point (probably unaware of that however) in that SaaS is a lot of people using you, until they use something else. Unless you can build pain points in and keep stacking increasing value over time, your users can and will leave you.
 
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