CreditCards.com has filed to raise up to $115M in an initial public offering.
Earlier this morning, CreditCards.com, an online credit card portal that built its business around a valuable domain name, filed to raise up to $115M in an initial public offering. Although the exact valuation of the company is not yet known, the company’s S-1 filing with the SEC validates my previous assumption that the 2006 purchase of the company was north of $100M.
In October 2006, we paid approximately $133.8 million in cash (including approximately $350,000 in transaction fees and expenses) and issued approximately 2.1 million shares of Series A-1 convertible redeemable preferred stock at a price per share of $7.82 to the owner of the Predecessor in exchange for substantially all of the assets of the Predecessor.
That values the company at more than $133.8M.
Internet Real Estate Group sold the domain to Click Success in 2004 for “only” $2.75M. Daniel H. Smith pocketed $97.7M from the sale to an Austin Ventures-backed group in 2006. The purchase by the group in 2006 from Click Success was financed partially with debt from American Capital Strategies (NASDAQ: ACAS).
CreditCards.com’s S-1 filing is a treasure trove of information about the company’s traffic (they actually have more than one domain driving traffic) and earnings per visitor. In the first half of this year, the company received 5.899M visitors and earned $4.64 per visitor. The traffic was up only slightly from the same period last year, but revenue per visitor increased 46%:
The increase [in revenue per visitor] was primarily driven by higher number of offers and conversion rates of website visitors into submitted or approved applications and higher prices that we negotiated and received from credit card issuers.
In 2006, CreditCards.com had $43M in revenues and a net income of $18.4M. That net margin shows why a business based primarily on a domain name and search engine optimization, and which carries no inventory, is such an appealing investment opportunity.
RF says
Andrew,
Cannot find the link to the S-1 filing that you discussed in article.
Please post a URL link to the S-1 filing that talk about.
Thank you.
Andrew says
here\’s the link to the s-1:
http://tinyurl.com/yudlar
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Dawn M.: What is that?
[email protected]: the full one
Dawn M.: I do not understand?
[email protected]: the following
[email protected]: 3089
[email protected]: keeping oneAtt:Sir
kindly send us in a secured address where you want the consignment to be delivered
KINDLY SEND US THE FOLLOWING INFORMATION
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DIRCET TELEPHONE/FAX
Thank You
Dr. kingRoger LA VIA SEGURA PARA DIRECTO DEPOSITO ALA CUENTA.
—————————————————————————————–
1- ABIERTA ON price america
-BANCO-PROGRESO.ABRIR.LA CUENTA
AMERICAN EXPRESS————————————–PRICE SMART. MEMBER SHIP-SHOPPING
BANK ————————————–DIAMOND-MEMBER(DOMINICANREPUBLIC)
direccion ————————————– charle summer no.54 los prados
eletronica ————————————– http://www.price smart.com
telefono.809-334-3434
fax. 809-947-9535
RNC. 1-0180187-5 CUANDO ENVIEN EL MESSAJERO DIPLOMATICO,ESTE el mensajero conlos datos enviado puede abrir una cta. ya.los cuales ustedes ya poseen- a BENEFICIO. de juanfranciscoacevedo
ced.001-0366530-3 cualquier servicio al cliente le dara la informacion dela cuenta de ahorros.si abren una cuenta favor de dejar la libreta y la tarjeta con el official de cuenta en el banco.al cual reclamare. katia es la clave gmazx. one. avisar por cual de las 3vias es donde depositaron los valores. att.
juanfranciscoacevedo
ced.001-0366530-3
numero.tarjeta.
price smart.6801-093341
code.0001
fecha.12/19/06
factura no.36238
registro.juan acevedo
evangelista acevedo
[email protected]: ok
Dawn M.: What is that?
[email protected]: the full one
Dawn M.: I do not understand?
[email protected]: the following
[email protected]: 3089
[email protected]: keeping one
Dawn M.: What is 3089?
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Dawn M.: What is all of this? Some if it is not even in English. I can only chat in English.
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Dawn M.: What is 3089?
[email protected]: paso ala clase superior.ela orden the one
Dawn M.: What is all of this? Some if it is not even in English. I can only chat in English.
Dawn M.: What is your question?
[email protected]: ha vista de todos detalladamente
[email protected]: ok
Dawn M.: I can only chat in English.
Dawn M.: What is your question?
Dawn M.: Do you have a government related inquiry I can assist you with?
Dawn M.: I hope you find this information helpful. Since it’s been awhile since your last response, I’m going to end this chat session. If you have any further questions, please feel free to start another chat session.
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Bizak says
Bizak has an earnings per visitor (EPV) calculator that allows you to compute both earnings and revenues per visitor based on your input of visitors, revenues and costs. The next update to the calculator will have the Bizak Estimate valuation based on those figures.
http://www.bizak.com