Venture-Backed Companies May Be OK?ö?ç?Âfor Now

By Chris Preimesberger  |  Posted 2008-09-30 Print this article Print

Joe Davis, president and CEO of Coremetrics, a venture-backed, 300-employee company that provides hosted marketing optimization software to large enterprises, isn't seeing a direct impact from the Wall Street crisis in his domain. Yet.

"Frankly, the biggest concern I see right now is a personal concern about my own portfolio," Davis said. "We just closed a $60 million round of financing, we just looked at the markets, and didn't see an IPO happening for at least a year or more. To fund-raise at that size is almost like a private IPO. We made sure that we had enough money in the bank to make sure we didn't have to worry about cash for awhile."

Davis said with a laugh, "It seemed smart at the time, it seems incredibly brilliant now. Especially when I look at how difficult it's going to be in the short term for people to raise money from a debt or equity position."

Even with that bankroll, however, Davis said he's thinking differently about how the company spends its money now than he did a month ago.

"We're going to see some distasteful times for a little while," Davis said. "We will continue to be prudent in how we operate our business, no question about that."

About 50 percent of Coremetrics' business is online retail, Davis said. "We have most of the big online retailers as customers, and while some of them are flat in in-store sales, their online sales are growing really rapidly," he said.

One of his biggest customers, Davis said, has seen its in-store sales drop 10 to 15 percent in the last year, while its online sales have improved by 35 percent.

"Our [sales] growth is tied to page views and online sales, so our income is doing okay. Tomorrow [Sept. 30] is the last day of the quarter, and we're on track to book our biggest bookings quarter ever. At this point in time, we feel good-I'd love to say great-but I'm a fairly cautious person," Davis said.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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