1. Envivio
YTD Return: -81%
Date of IPO: 04/24/12
Envivio (NASDAQ:ENVI) develops software to help with the processing and distribution of high-quality video. The company has a proprietary compression and IP networking system, which involves a complex array of encoders, transcoders and network media processors. The technology allows for delivery across any type of platform, whether it be television, tablets, smartphones, netbooks or laptops.
While the industry is large, with a market size of $3 billion, it is still highly sensitive to the macroeconomy. So in mid-August, the company announced a warning because of a slowdown in North America and Europe. It dropped the revenue guidance for fiscal Q2 to between $10 million and $11 million, which was down from the prior forecast of $17 million to $18 million. Because of this huge miss, Envivio’s stock collapsed.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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