You gotta give credit to MediaMath. At least, Goldman Sachs did.
MediaMath said Tuesday that it had received a $175 million credit facility led by the finance giant. Santander Bank also partnered.
CFO Stacey Bain said MediaMath’s previous debt facility was coming due, and the company will use its new line of credit to refinance some of that old debt and fund growth goals.
While Bain didn’t reveal specifics, she acknowledged “there are benefits from increasing our borrowing capacity and consolidating within a single debt facility with a strategic set of lenders.”
And those benefits, as well as that additional line of credit, will come in handy considering MediaMath’s hope to reach its next growth stage, which will require product innovation and solidifying its existing markets.
“We’re getting a lot of pull from the market, where people are solving for their internal marketing needs,” Bain said.
Big shifts happen so often in ad tech that it sometimes feels like the sector is built on a fault line. While about two-thirds of MediaMath’s business comes from agencies, President Mike Lamb previously told AdExchanger that brands last year were particularly interested in having direct relationships with vendors. It got to the point where MediaMath’s US business was split nearly evenly between agencies and brands.
Of course, both brands and agencies are fickle, and the demands they place on their tech partners can be onerous. Look no further than what happened to AudienceScience. So, constant innovation in ad tech is a must, and that requires a steady stream of money.
“We need to make sure we have the capacity to deliver,” Bain said. “We’ve expanded and invested in our global footprint and continue to invest in our products.”
When asked if the company is profitable, Bain said: “We are positive.”
She added that MediaMath needs a track record of profitability and positive cash flow to take advantage of expansion opportunities that aren’t “organic."