Maxpoint Interactive, which is aiming to be the next Triangle firm to go public with the aim of raising $75 million through at IPO, may not be the best bet for your investment dollars.
Read what MaxPoint has to say in its latest SEC filing, which provides more data about MaxPoint’s business and plans for an IPO. If successful, MaxPoint will trade on the Nasdaq under the symbol MXPT.
SEC filings typically include such “risK’ statements, but WTW think it’s interesting to show MaxPoint’s concerns in detail.
The filing reads:
“Risks Related to Our Business”
- Our business is subject to numerous risks of which you should be aware before making an investment decision, described more fully in the “Risk Factors” section immediately following this prospectus summary. These risks represent challenges to the successful implementation of our strategy and to the growth and future profitability of our business. These risks include the following:
- Our limited operating history makes it difficult to evaluate our business and prospects and may increase the risks associated with your investment.
- We have a history of losses, we expect our operating expenses to continue to increase substantially and we may not achieve or sustain profitability in the future.
- If the MaxPoint Intelligence Platform does not accurately predict the most likely local buyers for specific products, we could lose revenue, which would have a material adverse impact on our operating results and financial condition.
- Our operating results fluctuate, which make our future results difficult to predict and could cause our operating results to fall below analysts’ and investors’ expectations.
- If we are unable to attract new customers or our existing customers do not allocate a greater portion of their marketing spend to us, our revenue growth will be adversely affected.
- If we fail to develop new solutions and services or enhance our existing solution and services, we may not attract and retain customers, and our revenue and results of operations may decline.
- If we do not manage our growth effectively, the quality of our solution may suffer, and our operating results may be negatively affected.
- We may not be able to compete successfully against current and future competitors, which may result in declining revenue or inability to grow our business.
- We have historically relied, and expect to continue to rely, on a small number of customers for a significant portion of our revenue, and the loss of any of these customers may significantly harm our business, results of operations and financial condition.
- We rely on advertising agencies that act on behalf of our customers for a substantial majority of our revenue. Multiple advertising agencies operating within four global advertising networks represented numerous customers accounting for approximately 10%, 10%, 13% and 16% of our revenue, respectively, for the year ended December 31, 2014. The loss of any such relationships or increased competition from such advertising agencies or agency trading desks could materially harm our business.
- Legislation and regulation of online businesses, including privacy and data protection regimes, could create unexpected costs, subject us to enforcement actions for compliance failures or cause us to change our technology platform or business model, which may have a material adverse effect on our business.
- Our ability to generate revenue depends on our collection of significant amounts of data from various sources.
The full filing can be read at: http://www.sec.gov/Archives/edgar/data/1611231/000104746915000827/a2223063zs-1a.htm