Brightmail files for IPO

A 4-year old anti-spam company with only $26 million in fiscal 2004 revenue and very slight profits has decided to go public. This will really test how ready the markets are for smaller IPOs. This is a major growth industry, to be sure, but the company doesn\’t have the revenues you expect these days.

Here is an excerpt from their S-1, filed today:

Brightmail is a leading provider of electronic messaging security software and services to enterprises and messaging service providers worldwide. We provide a comprehensive suite of products and services focused on securing the messaging infrastructure of businesses of all sizes and industries worldwide. Our proprietary products and services help customers protect their electronic messaging infrastructure by effectively identifying and disposing of unwanted or malicious messages while accurately allowing delivery of legitimate messages. These integrated products and services help our customers protect their systems from spam, viruses and fraudulent emails, as well as other security threats while allowing legitimate mail to be reliably and securely delivered.

We were founded in February 1998 and began offering our messaging security solutions in 1999. Our revenues have grown from $93,000 in fiscal 2000, the first full year in which we sold our products and services, to $26.0 million in fiscal 2004. We experienced our first profitable quarter in the fourth quarter of fiscal 2003, and we had net income of $1.2 million in fiscal 2004. Based on stock-based compensation we recorded as of January 31, 2004, we expect to amortize approximately $1.4 million in stock-based compensation over the next four years. Consequently, we expect these amortization charges to result in net losses on a quarterly and annual basis in fiscal 2005. In addition, we first achieved positive cash flows from operations in the third quarter of fiscal 2003, prior to which time we financed our operations primarily through equity financing. Since inception, we have raised a total of $53.2 million, primarily through issuances of convertible preferred stock. 

As of January 31, 2004, we had cash, cash equivalents and short-term investments totaling $26.8 million and an accumulated deficit of $38.8 million, and our customer base consisted of over 2,000 customers with an aggregate of over 300 million end-user mailboxes under subscription.

Leave a Reply


More Posts Logo Design

Some of you know that my partners and I are launching a new company that aims to help a billion or more people soar with

Cold Showers Can Benefit Your Health

I hated what I read in the Harvard Business Review last Friday: Cold showers have health benefits. I’ve always ignored people who advocate taking cold

People Like Me Need People Like You

“People Like Me Need People Like You” Someday I’ll write a book about I’ll highlight the people who built Ancestry from the ground up–unsung

The Team Coaching Zone Podcast

To listen to this podcast, click HERE. Announcer: Welcome to the Team Coaching Zone podcast. Join your host Dr. Krister Lowe and today’s leading organizational

My Favorite Artist

Artists, poets, and prophets can help us make sense of the craziness that we experience in the world. My favorite artist is Regina Spektor. When

The Coach You Need

When you need a helping hand in life or at work you might decide to hire a coach. There are many amazing executive, career, leadership,

Beware of Taking Advice

Next Friday I get to deliver a keynote at Phoenix’s biggest startup event. But beware of taking advice from me–or anyone else. Startup events are

An Entrepreneurial Superpower

One of my entrepreneurial superpowers is asking questions at scale. Before I started Ancestry I went to libraries and conferences and asked questions. I learned

Paul hopes to bring the strengths message to all 50 states and to 50 countries by 2025.
Contact him so he can help you spark a strengths movement in your area, company, or industry.