OpenX opens kimono to reveal financials – prepwork for an IPO?

February 14, 2012

It’s the season for getting a peek at private Internet companies’ financial results.

Wall Street is still chewing over Facebook’s recently revealed numbers, and on Monday, OpenX Technologies, a private, venture-backed online ad company, served up some financial gristle of its own.

The company, which provides an online ad exchange as well as ad server technology, said that it is now on track to generate more than $100 million in revenue on an annualized run rate basis and that it became profitable in the fourth quarter of 2011.

And it said it expects to profitable in 2012.

The move comes a few weeks after Facebook, the world’s No.1 Internet social network, pulled the curtain back on its financials for the first time, revealing $3.7 billion in 2011 revenue, with the release of the prospectus for its upcoming IPO.

OpenX CEO Tim Cadogan said the release of some of its financial results was not a sign that it planned to follow Facebook’s footsteps into the public market — at least not immediately.

“It’s premature to commit to it at this point, but it’s definitely something we’ve been thinking about,” he said of an IPO.

“We’ve talked to accountants and bankers, and started to make sure that we got the groundwork in place,” he said.

The company’s improving business may provide some reassuring information about the state of the online advertising market, amid broader concerns about economic conditions.

OpenX served more than one trillion ad impressions in 2011, the company said, and its online ad exchange, which competed with Google’s DoubleClick ad exchange, saw revenue increase 700 percent last year.

“We’re very fortune in that we’re sitting in a very high growth part of the economy,” Cadogan said.

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