Online marketing company ReachLocal just filed a $100 million initial public offering (IPO). For the first three quarters of 2009, ReachLocal made a reported $143 million in revenue compared to $100 million in 2008 for that period. Profits were $11.66 million of that.
ReachLocal’s venture funding sources, VantagePoint Venture Partners, Rho Ventures, and Galleon Group, have put in about $68 million into the company, so cashing out at $100 million is actually a small return by comparison.
ReachLocal is one of the most well-known Internet marketing firms in the business. They work by empowering small, local businesses to reach out to the world at large via the Web. Businesses large and small use ReachLocal and the company was one of the first to use localized relationship marketing as well.
The company is headquartered in Woodland Hills, California and headed by CEO and co-founder Zorik Gordon. It is entry number 39 in the current Inc. 500 list. The company has impressive comScore and other rankings as well. They reach over 195 million search engine users, 170 million surfers, have had 20 billion total local search impressions, manage over 55 million keywords, and have generated over 33 million inquiries to clients through phone and online.
Not too shabby having been around only since 2004.
ReachLocal operates in several geographic areas world-wide and targets potential customers for their clients based on their location and strategies geared towards that area’s best uses. One area might see better return from Twitter while another might be more useful with localized banner ads or Facebook ads. Through a network of sites, the company advertises for businesses large and small.
Pricing depends on what you’ll use when using ReachLocal. For businesses with a good advertising budget who want to aim locally and are tired of the fruitless Yellow Page game, ReachLocal is probably a good bet.
