Connotate: Private Company Toot Toot
April 29, 2013
I read “Connotate Announces Record Quarter, Driven by Market Demand for More Rapid Delivery of Web Content-Based Products and Services.” The main point is that Connotate is growing revenues and that growth is a result of “market demand.”
Market demand means, according to wise Geek means:
the total amount of purchases of a product or family of products within a specified demographic. The demographic may be based on factors such as age or gender, or involve the total amount of sales that are generated in a particular geographic location.
I learned:
The market for the Connotate solution is broadening as the cost of deployment continues to decrease. “We’ve mastered the entire workflow stack from manual processes all the way to high-end automation,” said Mulholland. “This has resulted in significant growth for us in the SMB market, while we continue to increase the value that our large enterprise customers are receiving. For example, a major UK-based job board publisher was tasked with achieving a 40 percent increase in the number of listings in a very short period of time. Connotate’s automated solution is helping them meet this aggressive goal.”
Does this mean that other companies in Connotate’s competitive sphere will experience similar upsides? The anecdotal information available to me suggests that some of the companies competing directly with Connotate are having trouble closing commercial deals which generate a profit for the vendor. Examples range from specialists in pure analytics, providers of business information visualization systems, and metatagging outfits.
My hunch is that if Connotate is experiencing the financial gains attributed to this privately held company, other factors must be in play. What are those factors? Why are so many of Connotate’s competitors struggling to hit their numbers? Why are some investors slowing down their commitment to back some of Connotate’s rivals?
Perhaps market demand does not float the boats in this particular body of water? Worth monitoring the actions of big name investors with a fondness for this sector like Silver Lake, some of the companies which continue to receive injections of cash in the hops of hitting the big time, and the peregrinations of executives who jump from one content processing outfit to another.
I am assuming that the financial data referenced in the write up are accurate.
Stephen E Arnold, April 29, 2013
Sponsored by Augmentext
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