Don’t feel bad if you’ve never heard of Flurry
before. A lot of people haven’t, but if you own a smartphone your certain to
have been affected by this quiet mobile adtech giant. Some surprising
information can be found on their website. The company claims to have a reach
of over 1 billion devices each month and mines 3 terabytes of data each day
through 350,000 apps from 115,000 different companies.
Business Insider’s Jim
Edwards had a talk with Flurry CEO Simon Khalaf about the future of
the company:
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.
Flurry reaches 1.1 billion mobile
devices each month with ad impressions inside apps, almost twice as many as
Google, which is alarming 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’s numbers refer 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.
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.
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.
You can read the original article
here: http://www.businessinsider.com/flurry-ipo-and-ceo-simon-khalaf-2013-9
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