The ConversionPoint IPO: What You Need To Know

Retailers are still working out the kinks in their transition to e-commerce, and ConversionPoint Holdings is looking to capitalize on the chaos with marketing, tech and client-conversion support.

The IPO

ConversionPoint will issue more than 6.15 million shares on the Nasdaq under ticker CPTI, according to the firm’s S-1 filing. Priced between $6 and $7, the offering represents about 21.9 percent of outstanding shares and is expected to bring in about $49.54 million.

The lead underwriters include Oppenheimer and GMP Securities.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

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The Company

Based in California, the firm provides technology solutions for digital marketing and e-commerce operations.

Its software-as-a-service model supports content creation, information management, audience targeting and conversion, logistics, and customer management. ConversionPoint also uses proprietary technology to facilitate direct-to-consumer sales.

Current clients including The Coca-Cola Co KO, Microsoft Corporation MSFT, Roku Inc ROKU and 3M Co MMM.

Concurrent with its offering, ConversionPoint will acquire Inuvo, a business-to-business and business-to-consumer firm with assets in data analytics and artificial intelligence.

The Finances

In 2018, ConversionPoint recorded $39.78 million in revenue amounting to a loss of $22.24 million. The previous year saw revenue of $49.92 million for a net income of $396,660.

Inuvo reported $73.33 million in revenue against the previous year’s $79.55 million. Net loss rose from $3.06 million in 2017 to $5.89 million in 2018.