Online marketing company. Recent related IPO names include ExactTarget $ET and Responsys $MKTG.

Ticker: ELOQ, $85M deal, mostly primary. $10.50 mid-point, JPM & Deutsche have the books, JMP, Needham and PacCrest on the cover.

Founded 2000, SaaS model, $100M RRR. Cash flow break-even since 2007. 90% of revenues from North America. Revenue growth has accelerated over the past few years from 20% to 40%.

[CEO Joseph Payne is solid but should stay out of comedy.]

Another online marketing technology company. Part of their story is that they “wrote the book” on it: Digital Body Language

We know it’s a large market and ELOQ will join a growing list of public companies including Constant Contact $CTCT, ExactTarget $ET, and Responsys $MKTG. Within the general ecosystem we also see firms like Salesforce.com $CRM and LinkedIn $LNKD.

Eloqua goes after the broad business market but has some affinity with technology companies which is encouraging.

Company uses a hybrid distribution model with enterprise sales for large organizations and a small in-house group for the SMB market.

Claims to be the only HTML5 based product and to maintain an open architecture. Appears to be targeting a more business-focused community like Return Path. Approach involves education, training, a real process, and measurements to complete a feedback loop.

Spends time on market leadership and competitive position but fails to deal directly with the most viable direct competitors. Any company that is one person larger is a “legacy vendor” and any company that is smaller is a “niche vendor.”

Uses the classic “land and expand” sales strategy described by similar companies like Qlik Technologies $QLIK.

Growth strategies include international expansion and a shift into higher-value “Revenue Performance Management” (RPM) and some selective acquisitions.

The RPM story includes specific performance benchmarks and data which they believe is a key competitive advantage and company asset.

Company has been invested steadily in both R&D and S&M in the past few years. The company P&L is running at break-even but management targets 20% cash flow margins in the long term.

Closing arguments about how Eloqua clients outperform the S&P is a bit unconvincing. We all know that the choice of the time period can skew data. Even worse this approach tends to mistake correlation with causality.

Overall another high quality SaaS company in a large and growing segment of the market.

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