A Look at Yodle's $75 Million IPO Filing
Yodle — part of the class of 2005-2007 SEM-focused Independent Sales Organizations that took on traditional local sales organizations — filed this week for an IPO that could raise $75 Million.
The filing provides insights into Yodle�s evolution, and the evolution of the local online sales space overall, which has moved towards cloud-based automation. As Yodle notes, it not only provides its customers with an online presence, but mobile and social presences as well.
�Businesses need a comprehensive digital presence that includes a professional quality website that is easily discoverable and optimized for mobile devices, exposure on leading online directories and ratings and reviews sites, and tools to communicate with customers via email, text messages and social media notes Yodle in the filing.
The company’s customer base currently consists of 44,800 local businesses, making it one of the largest sales groups. These customers helped it achieve revenues of $161.9 million in 2013, with the average customer of its flagship product paying under $300 a month � or less than half what they’d have to spend if they purchased similar functionality a la carte, says the company.
Many of Yodle’s customers belong to one of several vertical categories. For instance, the company reports that it has account relationships with 6,400 dentists (out of 166,500); 4,500 plumbing, heating and air conditioning contractors(out of 226,500); 3,400 lawyers (out of 165,000 ) and 1,200 landscapers (out of 459,600).
Yodle has also focused increasingly on servings “brand networks” — national franchisors, manufacturers and multi-location businesses that are targeting locally. As the space evolves, the competitive picture has evolved as well. Yodle’s filing notes that rivals for local business marketing budgets now include a wide range of players, including traditional Yellow Pages, direct mail campaign providers and advertising and listings services on local newspapers, magazines, television and radio.
Other competitors include online search engines, online business directories, providers of digital presence offerings (i.e. GoDaddy, Main Street Hub, Web.com); providers of digital marketing solutions, such as SEM companies; and productivity and office management tools, such as Constant Contact, Demandforce, MailChimp and Solutionreach.