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This Is How Much "Net Income" Today's Four IPOs Generated Last Year

Tyler Durden's picture




 

Earlier today, four "buzzing" US-based IPOs priced, raising hundreds of millions in cash, namely GrubHub ($193 million), OPower ($116 million), Five9 ($70 million), and Corium ($52 million), for a grand total of nearly half a billion in proceeds. So how much actual net income do these supposedly post-VC stage companies generate? Instead of boring readers with more numbers, here is a simple chart.

Well... there's always "groath."

 

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Fri, 04/04/2014 - 12:04 | 4625092 Two-bits
Two-bits's picture

Strong buy.

Fri, 04/04/2014 - 12:08 | 4625105 Skateboarder
Skateboarder's picture

Left axis needs 10^6 multiplier. Surely they didn't raise $420 and spend it on booze and weed. Oh wait, they probably did.

Fri, 04/04/2014 - 12:11 | 4625113 Two-bits
Two-bits's picture

You might be right; the IPO names do sound a bit like Marijuana strains.

 

'Let me get a 1/4 of that OPower"

Fri, 04/04/2014 - 12:24 | 4625169 smlbizman
smlbizman's picture

beanie babys, tulips, and pump and dump...same as it ever was..

Fri, 04/04/2014 - 12:32 | 4625221 Two-bits
Two-bits's picture

Hell man, beanie babies are looking good compared to dollar denominated debt right now.  

 

Plus, they look innocuous. Even when stuffed with silver.

Fri, 04/04/2014 - 12:38 | 4625253 max2205
max2205's picture

When does POMO start?

Fri, 04/04/2014 - 13:13 | 4625396 furgheddubouddit
furgheddubouddit's picture

Janet Yellen's printed dollars hard at work.

Oh well, never mind.

Plenty more where that came from.

Fri, 04/04/2014 - 12:15 | 4625130 alphamentalist
alphamentalist's picture

Aggressive hold. Tell your friends.

Fri, 04/04/2014 - 12:05 | 4625094 pods
pods's picture

Deja vu all over again.

Do any of these use a sock puppet as a mascot by chance?

pods

Fri, 04/04/2014 - 14:04 | 4625566 Bangin7GramRocks
Bangin7GramRocks's picture

It's all about clicks and shit. Know what I'm sayin'?

Fri, 04/04/2014 - 18:40 | 4626691 Pool Shark
Pool Shark's picture

 

 

"Do any of these use a sock puppet as a mascot by chance?"

I was thinking more along the lines of Triumph the Insult Comic Dog:

"Hey, that's a nice business model,... FOR ME TO POOP ON!"

 

Fri, 04/04/2014 - 12:06 | 4625096 LawsofPhysics
LawsofPhysics's picture

What about the income of all those venture capitalists...

The public market is long dead, unfortunately, these fuckers still have access to the printer and the taxpayer's blood in order to keep their dark pools of wealth whole.

 

Please let the whole shit-show just fucking die already.

 

Full faith and credit motherfuckers...

i.e. no faith=no more fucking credit...

tick tock...

Fri, 04/04/2014 - 12:16 | 4625138 Skateboarder
Skateboarder's picture

LoP, I happened to watch a half hour teevee program yesterday. Three different versions appeared, advertisements for the "Square" card-reader / payment processing app for the iDrone. "Now you can just pay each other with credit!"

Fri, 04/04/2014 - 13:46 | 4625501 atomp
atomp's picture

On top of the transaction fee, when does it start automatically deducting sales tax, income tax, environments fees from your proceeds? Credit? Yeah, right.  More like low frequency skimming.

Fri, 04/04/2014 - 12:23 | 4625165 BandGap
BandGap's picture

D-day already happened.

http://www.youtube.com/watch?v=O5YpUsDsHmk

You think there's still hope?

 

Fri, 04/04/2014 - 12:35 | 4625236 Bastiat
Bastiat's picture

Great series. So was the Pacific but it makes BoB look cheery.

Fri, 04/04/2014 - 12:06 | 4625099 Z_End
Z_End's picture

Seems legit...

Fri, 04/04/2014 - 12:57 | 4625327 Aknownymouse
Aknownymouse's picture

The market is now a huge GrubHub

Fri, 04/04/2014 - 12:06 | 4625101 nickels
nickels's picture

Ms. Yellen, you have a call from a Mr. Icarus on line one.

Fri, 04/04/2014 - 12:37 | 4625242 Bastiat
Bastiat's picture

That's Mr. Yellen -- Obama said so.

Fri, 04/04/2014 - 12:09 | 4625108 oklaboy
oklaboy's picture

calling Doctor Moe,calling Doctor Larry, calling  Doctor Curley!!!!!!!........

Fri, 04/04/2014 - 12:27 | 4625186 ParkAveFlasher
ParkAveFlasher's picture

We get Shemp'd.  In fact, Yellen looks like Shemp.

Fri, 04/04/2014 - 12:33 | 4625230 thamnosma
thamnosma's picture

Actually it's Doctor Fine, Doctor Howard, Doctor Fine

Fri, 04/04/2014 - 12:59 | 4625334 detached.amusement
detached.amusement's picture

Dewey, Cheatem, and Howe...

Fri, 04/04/2014 - 12:11 | 4625114 Smegley Wanxalot
Smegley Wanxalot's picture

They are actually outperforming my expectations.

Fri, 04/04/2014 - 12:11 | 4625117 Clowns on Acid
Clowns on Acid's picture

The market is smellin' like Yellen.

Fri, 04/04/2014 - 12:14 | 4625125 alangreedspank
alangreedspank's picture

Raise. The. Goddamn. Fed. Funds. Rate.... High.

Fri, 04/04/2014 - 12:17 | 4625140 disabledvet
disabledvet's picture

Perfect time to start driving those rates down.

Fri, 04/04/2014 - 12:19 | 4625146 Bearwagon
Bearwagon's picture

Hmm  ... "Corium" ... that rings a bell ...

Fri, 04/04/2014 - 12:37 | 4625247 Bastiat
Bastiat's picture

That's the secret name of the JPM derviatives portfolio. 

Fri, 04/04/2014 - 15:47 | 4626112 NaN
NaN's picture

There's an idea! Name your company after the scariest, uncontrolled nuclear waste phenomenon. Good thing the general public has no idea.

www.wired.com/2013/04/the-most-dangerous-manmade-lava-flow

Fri, 04/04/2014 - 12:21 | 4625151 Crash Overide
Crash Overide's picture

Standard setup for HFT muppet pump and dump.

Fri, 04/04/2014 - 12:26 | 4625158 SheepDog-One
SheepDog-One's picture

'GrubHub', a middle man food delivery driver service is worth $193 million dollars? I'm sorry, that's just pure nonsense.

Fri, 04/04/2014 - 14:28 | 4625656 sessinpo
sessinpo's picture

SheepDog-One        'GrubHub', a middle man food delivery driver service is worth $193 million dollars? I'm sorry, that's just pure nonsense.

---

Of course it's pure nonsense, the IPO is worth over $2 Billion. AThe $193 million was net income. Income versus worth are different things.

But I agree with you. The company isn't worth shit. It is interesting the private equity firms sold over half of their holdings. Get out  and get your money while you can.

Fri, 04/04/2014 - 12:26 | 4625177 jtlien
jtlien's picture

Back in the 1980's I worked in a Silicon Valley startup doing computer stuff.  We had a pretty good year of sales and actually showed a profit for a quarter.   We were all hopeing that the stock could go public, but we were told again and again that the underwriters, SEC, NASDAQ etc all wanted 3 consecutive quarters of profits before going public.   Those were the RULES back then.   I'm not sure even AMZN would qualify today.

Fri, 04/04/2014 - 12:28 | 4625192 eddiebe
eddiebe's picture

Like they say: A rising tide lifts all boats. However, then again, comes a point in time, that a lot of us are waiting for....

Fri, 04/04/2014 - 12:28 | 4625194 LooseLee
LooseLee's picture

...Ha, ha. Just more concrete evidence the so-called-bulltard 'investor' is the dumbest of the bunch and on the lower rungs of evolution...

Fri, 04/04/2014 - 12:29 | 4625196 Hongcha
Hongcha's picture

It was fourteen years ago today

Sergeant Pepper taught the band to play ...

I am definitely better-positioned than I was in the Spring of 2000; but not short.

Fri, 04/04/2014 - 12:29 | 4625205 Hero Protagonist
Hero Protagonist's picture

Party like it's 1999!

Fri, 04/04/2014 - 12:35 | 4625235 thamnosma
thamnosma's picture

Surreal.

Fri, 04/04/2014 - 12:36 | 4625239 NOTaREALmerican
NOTaREALmerican's picture

Sure, but did anybody apply the 1st rule of bullshit to these valuations?

I think not.

The 1st rule of bullshit:  X + bullshit = $ ** bullshit.

So,   X (Being stocks) + bullshit (dude, like, dude this is, like, dude...  come-on dude, you can't lose) = cha-CHING!!!

If you don't factor in bullshit you can't understand anything males do.

Fri, 04/04/2014 - 12:39 | 4625254 Bastiat
Bastiat's picture

That's pretty funny.

Fri, 04/04/2014 - 13:00 | 4625257 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Corium is probably the only one that has a chance in hell of making it on it's own or getting absorbed into a larger pharmaceutical company assuming they have patents on their delivery systems.

http://www.bizjournals.com/sanjose/news/2014/03/04/corium-plans-50m-ipo-...

Corium International plans to raise up to $50 million in an IPO to help with its efforts to develop patches used in drug delivery.

The Menlo Park company led by CEO Peter Staple adapts its technology to help deliver drugs developed by five partners, two of which have made it to the U.S. market. They are a clonidine patch developed with Teva Pharmaceuticals for the treatment of hypertension and ADHD and a Fentanyl patch developed with Par Pharmaceuticals for treatment of chronic pain.

It also developed a tooth whitening system with Proctor & Gamble that is on the market.

Corium revenue rose from $35.7 million in 2012 to $37.7 million in 2013. During that time its net loss more than doubled from $5.4 million to $13.9 million.

The company has publicly disclosed about $40 million in venture funding, including money from Essex Woodlands Health Ventures, which holds about a 56 percent stake in Corium.

...

All it takes is one major pharmaceutical company to sign on or absorb them into the belly of the beast outright. That revenue loss maybe largely nothing more than them pumping money into R&D for these products and now is when the R.O.I. comes into play. I'm no investor but if you are playing the rigged casino this one may have some real potential and fundamentals going for it if it's product delivery system is solid. Do your own research first.

Fri, 04/04/2014 - 12:40 | 4625262 Totentänzerlied
Totentänzerlied's picture

FYI: Unlike GrubHub, Five9, and OPower, Corium actually makes something (needle-free transdermal drug delivery products).

Fri, 04/04/2014 - 12:44 | 4625269 exartizo
exartizo's picture

its a disgusting racket.

(tell us how you *REALLY* feel about it.)

Fri, 04/04/2014 - 12:45 | 4625274 Puncher75
Puncher75's picture

Now that graph show some real "potential".

Fri, 04/04/2014 - 12:46 | 4625277 fockewulf190
fockewulf190's picture

Expecting every single CEO/insider to cash out ASAP and start fighting the Chinese over at Zillow...laughing all the way.

Fri, 04/04/2014 - 12:47 | 4625283 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

A little bit on Opower also.

http://gigaom.com/2014/04/03/with-opowers-ipo-founders-show-meaningful-t...

...

Growing up

I know Yates less well, but he’s been the CEO that’s helped usher the company to where it is today. Opower has been so successful because they started off by building relationships with utilities back in their early days and started selling them something that was low cost and easy to use compared to competitors. Opower’s inaugural product was software that would take the energy data of utilities’ customers and create a detailed itemized bill that was mailed to the customer. Using behavioral analytics, the bills would include happy and unhappy faces and other techniques to shame or encourage the customer to reduce their energy consumption.

The reason a utility would buy this service is because collectively reducing the energy demand of customers is a much more low cost way to meet demand than to build new power generation. And for utilities that operate in states, like California, that need to reduce their customers’ energy consumption to meet state mandates, Opower works for that, too.

But now Opower has built out a comprehensive software-as-a-service product for their almost 100 utility customers who have stuck with them along the way. Not only do they do the mailed detailed reports, they also deliver much of their behavioral analytics and recommendations over utility websites, via emails and via text messages. They also have newer software products, including smart thermostat software that can control thermostats remotely (like Nest with regular connected thermostats) and a demand response platform. Demand response is when a utility turns down collective customer energy consumption remotely when energy demand on the grid spikes (like a hot summer afternoon).

...

You can read the rest of the fluff piece but I think people get the general idea.

Fri, 04/04/2014 - 12:52 | 4625302 adr
adr's picture

So the utility will automatically reduce my thermostat so they can continue to let the welfare fuck on HEAP heat their home to 85° in the winter and cool to 65° in the summer?

Fri, 04/04/2014 - 12:53 | 4625310 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

And to understand just what big brother police state evilness is afoot with these directed liquidity flows then later on becoming systematically important to the matrix and central control system.

http://www.fool.com/investing/general/2014/03/30/4-new-issues-ipo-invest...

...

Five9
For investors who can't get enough cloud this week, there's Five9. As with The Rubicon Project, the fluffy part of cyberspace is from whence this firm delivers its wares. Five9's niche is contact centers -- i.e., customers' first point of contact with a company and its services. Five9 provides its offerings through its Virtual Contact Center, a software suite packaging a host of functions needed to implement and run such operations. The company seems to be doing a good job of capturing its segment, with sharply rising revenues, but potential investors should keep an eye on growing bottom-line losses.

...

GrubHub
If any of this week's issues is familiar to the general public it's probably this one, a purveyor of online food ordering services with a strong presence on mobile devices thanks to its popular apps. Middle-manning food has been lucrative for GrubHub, although its rising costs have dampened profitability over the past three years. Another area of concern is the size of the issue, which gives GrubHub's stock very high valuations. Nevertheless, the restaurant business is poised to grow and the firm seems to be in a good position to take advantage of this.

It is not just Grubhub when you have control freaks who want to know about every aspect of your life.

Critical thinking question what points in a system does Grubhub and Five9 represent in transmission systems? One hint what do you tend to want to do to people who annoy the shit out of you?

Fri, 04/04/2014 - 12:48 | 4625288 adr
adr's picture

My company just made a product that alleviates even the worst debilitating migraines without drugs. Surely this is worth more than a middleman food ordering service.

Fri, 04/04/2014 - 14:24 | 4625646 spekulatn
spekulatn's picture

Are you at liberty to elaborate on your company and product? 

Fri, 04/04/2014 - 12:48 | 4625290 thorgodofthunder
thorgodofthunder's picture

GrubHub is a ridiculous idea. if I want a sandwich I'll get myself a fucking sandwich, call the deli or walk there myself.  It's like an app to take a piss.  Easier to just do it yourself.

Fri, 04/04/2014 - 12:51 | 4625301 NuYawkFrankie
NuYawkFrankie's picture

Or ask the butler to bring you one...

Fri, 04/04/2014 - 12:53 | 4625308 adr
adr's picture

or your wife...

 

 

... yeah right

Fri, 04/04/2014 - 14:09 | 4625572 thorgodofthunder
thorgodofthunder's picture

..

Fri, 04/04/2014 - 19:49 | 4626857 813kml
813kml's picture

My butler is useless, he always forgets the Grey Poupon.

Fri, 04/04/2014 - 12:56 | 4625315 Yen Cross
Yen Cross's picture

   Winning...   /s

Fri, 04/04/2014 - 12:57 | 4625322 Relentless101
Relentless101's picture

Doomed...

Fri, 04/04/2014 - 12:57 | 4625330 Sandmann
Sandmann's picture

The final stage of Capitalism is where the rate of profit falls and the MCOR starts becoming asymptotic, sounds like the Dot.com Era is where P/E ratios become like Dutch tulip bulbs. Charles Kindleberger had a lovely book on Manias and Crashes........

Fri, 04/04/2014 - 13:00 | 4625345 Silver Bullet
Silver Bullet's picture

Don't worry, they'll make it up in volume!

Fri, 04/04/2014 - 13:00 | 4625347 orangedrinkandchips
orangedrinkandchips's picture

Funny game here folks....

 

You all know the underwriters are on the hook to keep this pig with lipstick floating for a period of time....meaning they have to buy up more shit.....

 

grub wants to head down but they are bidding like crazy.....

 

keep up the pig.....

Fri, 04/04/2014 - 13:11 | 4625391 B2u
B2u's picture

Where is the sock puppet?

Fri, 04/04/2014 - 13:29 | 4625461 laomei
laomei's picture

Hey now, obviously you don't understand how companies work in todays world.  You see, valuations are based not on earnings, but rather future potential to monetize ideas.  I can, given a few hours, collaborate with a handful of people willing to effectively work for free until payout, draw up a business plan, ignore all current expenses and assume that clients will come to us for a service and pay us what we want. Then assuming on that assumption look forward 3 years and state that our valuation will be no more than $10m based on $4m annual revenue.  

 

Now remember, this is a more solid basis than these companies have, as merely breaking even would be a godsend and that's assuming that whatever meme-of-the-day they are basing their offerings on stay relevent till then.  But, in the meantime, they will fakebook it and use that capital to start eating up smaller companies and hoping that maybe, just maybe they'll eat enough profitable companies to get to a point that their losses are negated and they can claim they are in the black... at which point the stock will surge based on that impressive "growth" assuming that such progress will only continue to be made forever and ever thus, justifying the $50B market cap.

Fri, 04/04/2014 - 14:28 | 4625661 EggSlayer
EggSlayer's picture

un fucking real. im sure this is the case for a bunch of other IPO's and stocks that are considered "safe". For fucks sake.. look at Amazon. All this leaves room for is a return to fundamental analysis, traders who buy on strong fundamentals will win out in the coming years.

Fri, 04/04/2014 - 14:30 | 4625670 sessinpo
sessinpo's picture

For some grub is food.

For others, the larva of an insect.

Fri, 04/04/2014 - 15:50 | 4626131 Baby Eating Dingo22
Baby Eating Dingo22's picture

What's OMFG! worth.

Gotta be at least 250 million

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