There is certainly a little irony (possibly more than just a little) when a company specializing in viral market announces losses and puts the reasons down to its annual marketing spend. Isn’t viral marketing supposed to be ‘word of mouth’? And isn’t ‘word of mouth’ marketing based upon exactly that?
According to a report by TechCrunch, Bazaarvoice spent $35 million in sales and marketing in 2011. This brings their current deficit to a staggering $40.8 million. But it is not holding them back from filing for an IPO to raise approximately $86 million.
Bazaarvoice who show no sign of being profitable anytime soon, have included in the filing “We cannot be certain that we will be able to attain or increase profitability on a client-by-client basis or on a quarterly or annual basis.”
Not being an expert in the stock exchange and just reading between the lines, Bazaarvoice really doesn’t seem the most solid investment right now. How bizarre?
- Customer Reviews And Social Commerce Platform Bazaarvoice Files For $86M IPO (techcrunch.com)
- IPO Watch: Bazaarvoice’s S-1 Joins Angie’s List, Brightcove, Genomatica And Jive Software (forbes.com)