In December, ReachLocal filed for a $100M IPO and released a few interesting numbers about their operations.
The company has a $6.1M debt obligation after acquiring the remaining shares of it’s Australia operations (in Sept ReachLocal bought the remaining 53% of shares it did not own). Somehow after this deal was completed ReachLocal reported a “non cash” gain of $16.2M on the transaction, but that the operations had already ran a deficit of $3.3M.
If you back out the one time non-cash gain and operating losses from the Australian acquisition, ReachLocal lost about $500,000/mo over the last 9 months on $143.3 million in revenue. In a pre-IPO regulatory filing, the company stated it “expects to report net operating losses in the foreseeable future”.
It was shocking to read about how much ReachLocal employees dislike their own company. This JobVent Poll shows reach scored at 14.5 out of 100 employer rating. Unhappy customers are likely to follow this trend.
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The blog of a nomadic internet marketer, web host owner, dating site owner and web developer.
Nothing beats Google for local ads :flamesuit:
Job vent you can rate from a -45 to a 45. If you take that overall into consideration you van score up to 90 points. If Reachlocal has 15 plus the 45 just for having a neutral score then tha means they scored a 60 out of 90 and a 66% satisfaction rating.
I’m not surprised by this at all. The level of inter-dependence they require of clients is simply too high to lead to long-term satisfied customers. Besides, PPC management just isn’t a viably large market since Google does everything they can to eliminate the need through their own user-friendly tools.
I also wouldn’t discount the impact of mis-management. It takes quite a bit of skill to lose that much money every month.