E-commerce technology provider Demandware files for an initial public offering
July 18, 2011 10:09 AM
Demandware Inc., which sells e-commerce and mobile commerce technology, has filed for an initial public offering of stock that could raise as much as $100 million, according to registration paperwork the company submitted to the U.S. Securities and Exchange Commission. Demandware did not say how many shares of stock it would sell or at what price.
Retailers use Demandware software to operate e-commerce sites and mobile applications and sites. According to the registration document, the company had revenue of $36.7 million in 2010, up from $21.4 million in 2009 and $7.5 million in 2008. For the quarter ended March 31, Demandware had revenue of $11.6 million, up 61% from $7.2 million for the same period last year.
The company reported net income of $309,000 for 2010, compared with a nearly $10.4 million loss in 2009 and a $24.8 million loss in 2008. For the first quarter of 2011, Demandware reported a $717,000 loss, compared with a $45,000 loss for the same period last year.
“By simplifying access to the complex e-commerce functionality required for an effective and engaging consumer experience, we enable our customers to more easily launch and manage multiple e-commerce sites, initiate marketing campaigns more quickly and improve e-commerce site traffic, all of which can lead to increased revenue,” the registration document reads.
Demandware says 327 e-commerce sites used its technology as of March 31, up from 39 from the previous year. Customers include Barneys New York Inc., No. 222 in the Internet Retailer Top 500 Guide; Columbia Sportswear Co., No. 314; Crocs Inc., No. 198; Jones Retail Corp., No. 204; and Lifetime Brands, No. 342. In all, Demandware serves 49 of the retailers in the Internet Retailer Top 500 Guide.
According to the registration document, Demandware could use proceeds from its initial public offering for such purposes as boosting its European activities, launching services in the Asia-Pacific region, developing e-commerce applications, and supporting efforts to serve small- and medium-sized retailers and emerging brands.