billions of dollars

drag2share: Flurry CEO Says IPO Is Inevitable As Its Mobile Ad Reach Overtakes Google’s

source: http://feedproxy.google.com/~r/businessinsider/~3/0L8Ch6ODo9k/flurry-ipo-and-ceo-simon-khalaf-2013-9

Simon Khalaf, the CEO of mobile adtech company Flurry, tells Business Insider that an IPO is inevitable in the company’s future because his business has grown so big.

There has been gossip about a possible Flurry IPO for months now. Large adtech companies are often aimed specifically at IPO “exits,” so that their venture capital funders can get a payback on their investments. Millennial Media, Tremor Video, YuMe, Criteo and Marin Software have all gone public recently. Yet when CEOs are asked directly if they want the rich rewards of floating their companies on the public markets, they usually demur or hedge.

When we asked Khalaf about an IPO exit, however, he was refreshingly direct: “I consider an IPO an entrance,” he tells us. “We don’t have a choice, our volume is too high and our scale is too big for anyone to absorb us.”

Flurry has a net revenue run-rate of about $100 million. It has 150 employees and has taken $50.5 million in funding from investors. And although that doesn’t make Flurry the biggest player in mobile adtech — InMobi and Velti still have more employees, and Millennial has greater revenues — it is one of the biggest players in big data analytics and mobile app ad reach.

Here’s a slide on the number of mobile devices — 1.1 billion — Flurry reaches with ad impressions inside apps from Khalaf’s pitch deck:

Flurry

It’s an alarming slide, because everyone knows that Google has the largest share of mobile ad revenue on the planet, which is in the billions of dollars. But the Flurry slide refers to reach on devices via ads in apps. Google’s mobile ad business is largely search. And the bulk of consumer time spent on mobile devices is in apps, not on the web, Khalaf says. Here’s the slide he uses to illustrate that point:

Flurry

Flurry offers the full mobile ad stack, including a “supply side platform” for mobile app publishers who want to offers ad space for sale, a “demand side platform” for buyers who want to place ads, an analytics suite to measure the whole thing, and most recently a “real-time bidding” platform so that buyers can place ads on a live auction basis. That RTB marketplace, launched in April, already has 30 DSPs buying in it, Khalaf says. The Guardian and The BBC both use Flurry as publishers.

There is one more thing Khalaf is unusually direct about. Flurry is not yet profitable, he says. Usually when adtech CEOs are asked whether their businesses make money, they launch into an explanation of how they’re investing for growth or scale (or they say something impenetrably complicated about EBITDA). When asked whether the company is profitable, Khalaf says, “No. In 2014 we’re profitable maybe.”

The reason: Flurry is spending $28 million a year on data centers. “The cost of analytics is huge,” Khalaf says. Flurry wants to create the largest HBase cluster in the business, he says, referring to the gigantic — and gigantically expensive — database serving devices that can handle millions of lines of tabled information.


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Friday, September 20th, 2013 news No Comments

Apple Is Suddenly Spending Billions Of Dollars On Secret Projects (AAPL)

Source: http://www.businessinsider.com/apple-is-suddenly-spending-billions-of-dollars-on-secret-projects-2012-12

In the quarter ending June 2011, Apple spent less than $1 billion on property, plants, and equipment.

By March 2012, the number had spiked beyond $2 billion, beyond $3 billion, and approached $4 billion.

Horace Dediu thinks that number will zoom past $4 billion in 2013.

Here’s a chart he made to show what the spike looks like so far:

Apple Spike

Here’s the the interesting part about all this massive spending.

No one outside of Apple knows where it’s going.

“The capital is being deployed almost silently and, though vast in scale, barely gets a mention from analysts,” writes Dediu. “Not even a single question has been raised at any earnings call about this spending.”

His theory is that Apple, which prefers an “integrated” approach in everything it does, will soon make more of the components inside its gadgets, like chips.

That would explain why Apple has been so busy hiring former Texas Instruments employees, for example.

The truth is, Apple is a very secret company and it doesn’t have to say, specifically, where it’s spending that money.

For all we know, it could be building TV set factories.

One thing one know for sure is the Apple is always working on products that would cannibalize its current lineup. 

Maybe Apple is investing billions in a product that could kill the iPhone, like computerized glasses.

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Thursday, December 13th, 2012 news No Comments

How Apple’s Business Completely Changed

Source: http://www.businessinsider.com/how-apples-business-completely-changed-2012-1


What a difference a few years makes. Four years ago, Apple analysts fretted over iPod shipments and computer sales when an earnings call rolled around. All the early chatter is now focused on whether surging iPhone and iPad sales will even be enough to meet soaring expectations.   

The iPad, only a rumor two years ago, accounted for 24% of revenue last quarter. The iPhone, meanwhile, has jumped from 10% of revenue at the beginning of 2008 to 39% last quarter–and nearly 50% at the beginning of last year. With the tablet market still in its infancy and huge opportunities still available in mobile, the shift in Apple’s revenues has only just begun. All of which should futher underline the changing nature of their business: Apple is essentially a mobile computing company. 

Which is not to say the rest of the company isn’t growing. Mac shipments were up 20.7% year-over-year in the fourth quarter, according to Gartner–even as the rest of the PC market fell 5.9%. It’s just that they have not kept up with the astronomic growth of the company’s mobile products.

See our preview of Apple’s earnings here→

Apple Revenue Breakdown


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Tuesday, January 24th, 2012 news No Comments

Microsoft’s Share Of The Search Market Is Finally Bigger Than Yahoo’s (MSFT, GOOG, YHOO)

Source: http://www.businessinsider.com/chart-of-the-day-search-market-2012-1

Microsoft has poured billions of dollars into its search engine, and this is what it has to show for it.

It is now the second largest search engine in the U.S., just edging past Yahoo for the first time in December, according to the latest comScore data. That’s nice and all, but Microsoft is in a partnership with Yahoo, so it probably doesn’t want to be taking share from Yahoo.

It really wants to be taking share from Google. That’s not happening. The good news from Microsoft’s perspective is that Google’s search share has been stuck around 65% for years now.

chart of the day, sai, share of core searches us, jan 11 2012

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Thursday, January 12th, 2012 news No Comments

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