SAN MATEO, Calif. – Digital Impact Inc., an electronic mail marketing company, went public November 23, offering 4.5 million shares at $15 apiece. The company’s stock priced at the top of its $13 to $15 filing range.
Credit Suisse First Boston, Hambrecht & Quist Group, Donaldson, Lufkin & Jenrette Inc. and U.S. Bancorp Piper Jaffray Inc. underwrote the initial public offering, which left 23.5 million shares outstanding.
There were no selling shareholders. Institutional Venture Partners, Draper Fisher Jurvetson and Draper Richards L.P. were venture backers.
The company manages e-mail direct marketing campaigns for customers, which include The Gap Inc., Egghead.com and Preview Travel Inc. Through its Merchant Mail service, Digital Impact helps companies target and personalize their e-mail messages, manage their campaigns, track results and monitor their databases.
The $61.5 million in proceeds expected from the IPO will be used for general corporate purposes, including capital expenditures and the expansion of sales, marketing and technical services.
Digital Impact has never generated a profit, losing $642,000 in the six months ended September 30, 1998 and $8.8 million in the six months ended September 30, 1999.
Warren Packard, a partner at Draper Fisher Jurvetson, joined the company’s board of directors in March 1998, followed in November 1998 by Ruthann Quindlen, a general partner at IVP.
Digital Impact – Selected Financial
(in thousands, except per share data)
October 16, 1997 (inception) Six Months Ended
to Year Ended September 30
March 31, 1998 March 31, 1999 1998* 1999*
Total revenue 4 1,307 121 3,257
Net loss -103 -3,240 -642 -8,799
Net loss per share -0.45 -2.86 -1.95 -2.94