Convio Turns Profitable, Pulls IPO
Convio, an Austin-based company that provide SaaS CRM software for the non-profit market, is announcing record revenues today which has allowed them to turn the corner on profitabiity. In Q2 the company logged $14.7M in revenue, a 35% increase over the same quarter in 2007. Those sales numbers resulted in $1.3M in operating cash flow.
Almost a year ago, the company filed a registration statement with the SEC for an initial public offering (IPO) led by Goldman Sachs. We don’t have to tell you how ugly the public markets are these days. Convio CEO Gene Austin admits that good companies don’t go public in bad markets, and with Convio’s business growing soildly in the current economic environment, there is certainly no reason to push an IPO out the door. We expect the company to withdraw its S-1 registration statement today.
“We are pleased with our growth, record revenues, cash flow and profitability during a challenging economic period,” said Gene Austin, chief executive officer of Convio. “Nonprofits are buying solutions that will help them control costs, generate revenue and develop stronger relationships with their donors, volunteers and other supporters. Our results are testament to the mainstream acceptance of the on-demand model, our investment in strategic new products and services and our diverse set of proven applications as a cost-effective approach for nonprofits to drive results.”
[...] of well over a billion dollars. Noting that good companies don’t go public in bad markets, Convio recently pulled their IPO to wait for better conditions. Rackspace pulled their IPO once in 2000 when the markets were bad, [...]