AdForce, MediaMetrix Stocks Double on Opening Day
AdForce and MediaMetrix went public late last week, and the market sent bothcompanies skyward on their first day of trading.
AdForce and MediaMetrix went public late last week, and the market sent both companies skyward on their first day of trading.
Cupertino, CA-based AdForce Inc. (ADFC) rose 14 15/16 to 29 15/16 as 7.8 million shares changed hands on the Nasdaq exchange. The company closed its first trading day with a market value of $573.9 million.
New York City-based measurement company Media Metrix Inc. (MMXI ) rose 28 9/16 to 45 9/16, also on Nasdaq. The company closed its first trading day with a market value of $762.2 million.
AdForce sold 4.5 million shares at $15 each, raising $67.5 million. The sale, which was handled by Hambrecht & Quist LLC, equaled a 23 percent stake in the company.
AdForce says it delivered 13.6 billion ads last year, and 13.2 billion in the first quarter of this year. Customers include 24/7 Media Inc., GeoCities, Netscape Communications Corp. and Modem Media.Poppe Tyson Inc.
AdForce lost $5 million on revenue of $3.2 million in the first quarter, compared with a loss of $2.6 million on revenue of $414,000 in the same period a year earlier. AdForce competes directly with DoubleClick’s DART service.
Media Metrix lost $7.5 million on revenue of $6.3 million last year, compared with a loss of $4.9 million on revenue of $3.2 million in 1997. It merged with Atlanta-based Relevant Knowledge in November. On a pro forma basis, as if the companies had been merged for the full year, the company lost $16.2 million on revenue of $8.1 million in 1998, according to a Bloomberg News report.
Media Metrix sold 3 million shares, or an 18 percent stake, at $17 each, raising $51 million.
Clients include America Online Inc., Amazon.com Inc., Microsoft Corp. and Yahoo. It’s competition includes Nielsen Media Research and NetRatings, which recently formed a strategic relationship to provide Internet audience measurement services.
Media Metrix said it will use some proceeds from the stock sale to redeem shares held by The NPD Group, a market research firm that is its largest shareholder. Media Metrix also said it will use some money for international expansion, for new product development and for other general corporate purposes.
