Video demand-side platform TubeMogul priced the shares for its public offering Thursday, and the target price is significantly lower than the $11 to $13 per share the company previously specified. The company now expects to debut shares at a rock-bottom $7.00 to $8.00, according to an updated S-1.
The company had previously hoped to raise $93 million, but at the lower share price, it will more likely find itself raising around $47 million.
"TubeMogul will raise 38% less in proceeds than previously anticipated and will command a market cap of $244 million, down 38% from $394 million," said an item on Nasdaq.com. "The amended filing also includes $5 million of insider buying from Trinity Ventures, adding to the $20 million indicated by Foundation Capital. Insiders now have plans to purchase 53% of the offering."
The change comes amid significant investor pessimism around technology stocks and ad tech companies in particular.
TubeMogul's revenues were $22 million in Q1 2014 versus $9.6 million during the same period last year. Total spend through the platform was $48 million in Q1 2014, versus $16.3 million in Q1 2013. Also, the company said gross margins had expanded to 72% for Q1 2014 versus 65% in Q1 2013. Finally, net loss was $800,000 in Q1 2014 versus $1.9 million in Q1 2013.