MaxPoint Files for IPO

The underwriters for the offering are Goldman Sachs, Needham, Deutsche Bank, Pacific West and Blair.

MaxPoint provides a business intelligence and marketing automation software service that enables national brands to drive local, in-store sales. The MaxPoint Intelligence Platform predicts the most likely local buyers of a specific product at a particular retail location. Business intelligence is at the core of the solution, which leverages high-velocity data processing and proprietary statistical models to continuously analyze more than 10 billion daily data attributes to delineate consumers’ real-time purchase intent.

Approximately 88% of total U.S. retail purchases in 2014 occurred at physical locations, according to Euromonitor.

The foundation for local targeting is proprietary Digital Zip architecture, a digital grid of households organized into over 44,000 specific neighborhoods, or Digital Zips, which can be as small as a couple of city blocks. Through a combination of the proprietary and third-party data, MaxPoint creates a profile for each Digital Zip based on shared demographic and financial traits, such as family size, income level, education, age and historical purchasing behavior.

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This technology crawls, indexes and analyzes webpages around-the-clock and then matches the Digital Zips with the highest number of views of webpages that pertain to a key topic associated with a targeted product or product category. Based on these results, MaxPoint can then match a targeted product offer to specific Digital Zips that exhibit an online behavior that correlates most strongly with the likely purchase of such products at the local level.

The company’s diverse customer base consists primarily of enterprises with national brands in the consumer products, retail, automotive, health care, telecommunications and entertainment industries.

MaxPoint generated revenue of $14.7 million in 2011, $35.1 million in 2012 and $66.1 in 2013 million. From 2011 to 2012 there was year-over-year growth of 139% in revenues, and from 2012 to 2013 the company grew 88%. It recorded a net loss of $5.5 million, $6.8 million and $0.2 million for the years ended December 31, 2011, 2012 and 2013, respectively.

The company plans to use to the proceeds from the offering to obtain additional working capital and facilitate the company’s future access to public equity markets. Ultimately, management will decide what the proceeds will be used for.

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