Venture Backed IPOs Feel The Pain, But Some Stay Above Water: peHUB Analysis And Slideshow

The uncertainties of the European debt crisis continue to pummel stocks worldwide, including venture back IPOs.

Of the 29 venture-backed startups that went public in the United States since May, 16 are below their IPO prices and 13 above. Not a sparkling record, especially considering that five of the “above water” offerings were launched in the past three weeks and are likely being held up by small floats.

There are a variety of explanations for the pullback. None are fully satisfying. Certainly a thin float is one factor, at least to the extent that it contributed to first day rallies and then slow retreats as more shares became available for trading. The Wall Street Journal pointed out last week that Groupon, for instance, sold just 6% of its outstanding shares to the public. After a scarcity fueled initial rally, the stock reversed course as doubts about Groupon’s business model overwhelmed trading momentum.

Pandora Media and LinkedIn also sold fairly modest chunks of their outstanding stock and have experienced pullbacks, perhaps in part due to greater availability.

Geography is itself only a partial explanation. The market has punished foreign shares. None of the five Chinese companies with IPOs in the past five months can boast of shares ahead of their IPO prices. Neither can the one company from the Netherlands, nor the one registered in Bermuda.

But U.S. companies have an uneven track record themselves. Thirteen U.S. companies have shares prices ahead of their IPO prices and nine are behind the eight ball with prices below.

Big vs. small company also isn’t an explanation. Of the 29 companies that launched IPOs since May, 13 companies had initial market caps greater than $1 billion, according to data from Thomson Reuters, publisher of this blog. Only four of those now have share prices above their IPO prices, while nine have prices below their IPO price, including Groupon, HomeAway, Pandora and Solazyme.

Initial offering size also doesn’t provide a useful correlation. The average IPO size among the 29 companies is $228 million, according to Thomson Reuters data. Eleven startups with offering sizes below that amount have shares prices better than their IPO price. Eleven don’t. Five companies that raised more than that have prices below their IPO prices. Two companies are ahead.

With this mishmash of a market place, peHUB took a look at the 13 companies with shares prices ahead of their IPO prices. Here is what we found from our examination of S-1 and 10Q documents filed with the Securities and Exchange Commission:

  • Average revenue growth of the 10 companies with revenue was 103% with a range of 40% to 177%. (Three of the companies are concept bio-pharmaceutical and biofuels plays and have little or no revenue.)
  • Four are Internet companies; six have computer-related technologies including storage, security, software, networking and motion detection products; two are bio-pharmaceutical companies; and one is targeting biofuels.
  • Four have operating profits and nine don’t.
  • Three have quarterly revenue above $70 million. Three have sales between $20 million and $70 million, and four post less than $20 million a quarter in sales. (As mentioned, three have no substantial revenue yet.)

What follows is a slideshow of the 13 companies with key financial data and shares prices as of Friday. They are listed by IPO date. The first slide shows the entire list of IPOs.

[slideshow]

[slide title=”Venture Backed IPOs Since May”]

[slide title=”LinkedIn”]

IPO Date: May 19

IPO Share Price: $45

Current Share Price (Friday): $63.08

Revenue (Sept. Quarter): $139.5 million

Revenue Growth Rate: 125.7%

Operating Income (Loss): $4.6 million

Company Description: Social networking site

[slide title=”Fusion-io”]

IPO Date: June 8

IPO Share Price: $19

Current Share Price (Friday): $29.76

Revenue (Sept. Quarter): $74.4 million

Revenue Growth Rate: 176%

Operating Income (Loss): $4.7 million

Company Description: Computer storage technology

[slide title=”KiOR”]

IPO Date: June 24

IPO Share Price: $15

Current Share Price (Friday): $15.64

Revenue: no revenue

Revenue Growth Rate: N/A

Operating Income (Loss): ($14.8 million)

Company Description: Biofuels producer

[slide title=”Zillow”]

IPO Date: July 20

IPO Share Price: $20

Current Share Price (Friday): $22.59

Revenue (Sept. Quarter): $19 million

Revenue Growth Rate: 132%

Operating Income (Loss): ($606,000)

Company Description: Real estate Web site

[slide title=”Tangoe”]

IPO Date: July 27

IPO Share Price: $10

Current Share Price (Friday): $12.04

Revenue (Sept. Quarter): $27 million

Revenue Growth Rate: 60%

Operating Income (Loss): ($373,000)

Company Description: Lifecycle management software

[slide title=”Carbonite”]

IPO Date: Aug. 11

IPO Share Price: $10

Current Share Price (Friday): $11.47

Revenue (Sept. Quarter): $15.9 million

Revenue Growth Rate: 54%

Operating Income (Loss): ($7.4 million)

Company Description: Online backup

[slide title=”Ubiquiti Networks”]

IPO Date: Oct. 14

IPO Share Price: $15

Current Share Price (Friday): $19.36

Revenue (Sept. Quarter): $79.2 million

Revenue Growth Rate: 132%

Operating Income (Loss): $27.5 million

Company Description: Network technology

[slide title=”Zeltiq Aesthetics”]

IPO Date: Oct. 19

IPO Share Price: $13

Current Share Price (Friday): $14.02

Revenue (Sept. Quarter): $17.7 million

Revenue Growth Rate: 177%

Operating Income (Loss): (2.8 million)

Company Description: Medical technology

[slide title=”Imperva”]

IPO Date: Nov. 9

IPO Share Price: $18

Current Share Price (Friday): $26.05

Revenue (Sept. Quarter): $11.5 million

Revenue Growth Rate: 40%

Operating Income (Loss): ($2.6 million)

Company Description: Data security

[slide title=”NewLink Genetics”]

IPO Date: Nov. 11

IPO Share Price: $7

Current Share Price (Friday): $7.01

Revenue (6 months): $1.1 million

Revenue Growth Rate: 57%

Operating Income (Loss): (8.3 million)

Company Description: Bio-pharmaceutical

[slide title=”Clovis Oncology”]

IPO Date: Nov. 16

IPO Share Price: $13

Current Share Price (Friday): $13.01

Revenue: no revenue

Revenue Growth Rate: N/A

Operating Income (Loss) (9 months): $40 million

Company Description: Bio-pharmaceutical

[slide title=”InvenSense”]

IPO Date: Nov. 16

IPO Share Price: $7.50

Current Share Price (Friday): $10.10

Revenue (Sept. Quarter): $43 million

Revenue Growth Rate: 83%

Operating Income (Loss): $14.8 million

Company Description: Digital motion technology

[slide title=”Angie’s List”]

IPO Date: 11/17

IPO Share Price: $13

Current Share Price (Friday): $13.50

Revenue (Sept. Quarter): $24 million

Revenue Growth Rate: 55%

Operating Income (Loss): ($14.8 million)

Company Description: Internet site for local businesses

[/slideshow]