This Week’s IPOs: A New Cloud Deal

It's a light week, but one IPO on tap — Bazaarvoice — is at the center of the tech future: cloud, social media and mobile

   

There was only one IPO last week, but it turned out to be a strong one:  Brightcove (NASDAQ:BCOV) pulled off a 30% return. The company is a top player in cloud-based video services.

O.K, so what can we expect for the coming week? Unfortunately, IPO activity will remain light. In fact, there are only two deals on tap: cloud company Bazaarvoice and Proto Labs, which manufactures custom parts for prototyping.

Of these, Bazaarvoice is likely to be the hot deal. The company has a sophisticated platform that helps companies manage social media by analyzing the buzz from online reviews, YouTube, Twitter, Facebook and so on.  With advertising becoming saturated, companies are trying to find ways to enhance word-of-mouth marketing.

Bazaarvoice has 737 active clients, which include biggies such as Macy’s (NYSE:M), Home Depot (NYSE:HD) and Dell (NASDAQ:DELL).  The result is that the company has developed a substantial distribution footprint of web impressions, which amounted to 92.7 million for the past nine months.

From 2009 to 2011, revenues went from $22.5 million to $64.5 million. And the growth is likely to continue for some time. According to Forrester Research, about 52% of total online and offline sales will be influenced by Net content — such as reviews and ratings — by 2015.  A big driver is likely to be the growth in smartphones.

All in all, Bazaarvoice is at the heart of several key trends in technology: cloud, social media and mobile. That should be the right formula for IPO investors.

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook, All About Short Selling and All About Commodities. Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/this-weeks-ipos-a-new-cloud-deal/.

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