Austin, TX-based Creditcards.com has pulled the plug on its proposed $100 million+ IPO filed in August, citing current public market conditions. Besides a tough IPO market in general, the online service has been facing increasing costs and lower response rates due to the tightening in the U.S. consumer credit markets. Last year, the Company generated $63.3 million in revenues, largely derived from running targeted Google ads, spent $31.1 million for sales and marketing but only produced a $3.5 million profit. In 2006, Creditcards.com posted $42.9 million in revenues, spent $19.8 million for sales and marketing, and produced an $18.4 million profit. According to comScore, the Company attracted an average of approximately 976,000 unique visitors per month to its Website during 2007. The Austin Ventures company was headed by Elisabeth DeMarse, former CEO of Bankrate.
2004: $11.5 million $ 5.8 million
2005: $21.9 million $ 9.8 million
2006: $42.9 million $18.4 million
2007: $63.3 million $ 3.5 million
Source: CardData (www.carddata.com)