Thoughts on Tech, Deals, and Markets

The Rodney Dangerfield of Lead Gen

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IACI just announced less-than-stellar Q4 results.  The stock continues to languish near 52 week lows.

On a brighter note, ServiceMagic posted heroic numbers given the brutal consumer slowdown.  Revenue was $25.3m, up 15% y-o-y, while EBITDA was $2m, flat  y-o-y.  They are in a highly seasonal business–in Q3 they were at 34m/8m.

ServiceMagic dominates its vertical (home improvement/home services) more than any other lead gen company.   Given the significant economies of scale in a vertically-oriented lead gen business, they have a dominant strategic position.

Yet they are buried in IACI, where,, and others get far more attention, and happen to be dramatically inferior businesses.

Written by sandykory

February 4, 2009 at 8:17 am

Posted in Uncategorized

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