The Information

Data via PitchBook

Tech Deal Activity Drops In Q1 But Still High

By Martin Peers and Peter Schulz · Apr 28, 2015 10:05am PDT · 1 comment

After a boom in tech M&A in 2014, the first quarter of this year saw a downturn in deal activity, new data shows. But dealmaking remains elevated when looked at over a longer time frame, suggesting that this year could be another big year for mergers and acquisitions, even if not quite the blockbuster of 2014. As the attached chart shows,... After a boom in tech M&A in 2014, the first quarter of this year saw a downturn in deal...

Data via Jana and Google Play

How Apps Get Skinny

By Amir Efrati and Peter Schulz · Apr 21, 2015 10:01am PDT · 2 comments

For mobile apps trying to make it big around the world, size matters. Storage space on low-end Android phones that dominate markets like India and China is severely limited. Every megabyte counts. The Information charted some of the smallest apps to see who has mastered the process of keeping it light and how. In a sign of the importance of the... For mobile apps trying to make it big around the world, size matters. Storage space on low-end...

Data via Prof. Jay Ritter, University of Florida

A New Low in Profitable Tech IPOs

By Tom Dotan and Peter Schulz · Apr 14, 2015 7:01am PDT · 4 comments

Here’s a sobering statistic for anyone worried about where we are in the tech cycle: Last year, a higher proportion of money-losing tech companies went public than at any time since 2000. The proportion of tech IPOs turning a profit has declined in the past four years, according to data collected by University of Florida Professor Jay Ritter, a... Here’s a sobering statistic for anyone worried about where we are in the tech cycle: Last year, a...

Data via Quettra

Which Apps Retain Their Users—And Which Ones Don’t

By Amir Efrati and Peter Schulz · Apr 7, 2015 7:00am PDT · 7 comments

Data via Quettra

Which Apps Retain Their Users—And Which Ones Don’t

By Amir Efrati and Peter Schulz · Apr 7, 2015 7:00am PDT · 7 comments

The hardest thing about building a mobile company isn’t gaining users; it’s retaining them. And by this measure most social apps, including Snapchat, Vine and Twitter, are doing badly compared to Facebook and, surprisingly, Blackberry Messenger, particularly in Asia’s emerging markets. The Information asked a startup called Quettra for... The hardest thing about building a mobile company isn’t gaining users; it’s retaining them. And...

Data via SEC filings, DataFox

Bending the Subscription Software Sales Cost Curve

By Steve Nellis and Peter Schulz · Mar 31, 2015 10:01am PDT · 3 comments

In most subscription software companies, there’s a direct correlation between revenue growth and sales and marketing spending. Any company that gets more growth off the same amount of sales spending has a shot at eventually generating profits—in an industry where that feat is rare. Workday appears to be on track to do so. As the accompanying... In most subscription software companies, there’s a direct correlation between revenue growth and...

A History Lesson for IPO Watchers

By Martin Peers and Peter Schulz · Mar 24, 2015 10:02am PDT · 2 comments

Next year could be a big year for high profile tech IPOs, if history is any gauge. The Information decided to crunch some data about historical time-to-IPO patterns to figure out when some late-stage private companies would debut if they fit with the pattern set by companies like Facebook, Twitter and Google. Next year could be a big year for high profile tech IPOs, if history is any gauge. The...

Charting by The Information; Data via company earnings, ComScore, eMarketer, Flurry

Mobile Revenue by the Minute

By Tom Dotan and Peter Schulz · Mar 17, 2015 10:00am PDT

As the online ad race turns to mobile, companies are under pressure to make money from each minute people spend on their apps. So, The Information calculated how much money leading tech companies are making per minute spent within their apps. (It’s in the micropennies but useful nonetheless.) What it shows is that while Twitter occupies a tiny... As the online ad race turns to mobile, companies are under pressure to make money from each...

Tech’s Advertising Efficiency Gap

By Martin Peers · Mar 9, 2015 10:00am PDT

Tech’s Advertising Efficiency Gap

By Martin Peers · Mar 9, 2015 10:00am PDT

If there’s one industry outside of tech that should be happy about Apple’s release of its smartwatch, it’s Madison Avenue. That’s because the new product launch will force Apple to spend a little more money on marketing. As the accompanying chart shows, Apple spent just 0.67 percent of its revenues on advertising in its fiscal 2014 year, the... If there’s one industry outside of tech that should be happy about Apple’s release of its...

Graphic by Steve Nellis.

The Race to $500 Million in Revenue

By Steve Nellis · Mar 3, 2015 10:00am PST

Half a billion dollars in revenue can be a tipping point for startups. Many companies that hit it quickly march on to top $1 billion and beyond just a few years later. The Information rounded up some prominent technology firms from the U.S. and China to see just how quickly they made it to $500 million in net revenue. The numbers show how much... Half a billion dollars in revenue can be a tipping point for startups. Many companies that hit it...

Chart by Tom Dotan; Data via company earnings, ComScore, eMarketer

Google Still Lapping the Field in Mobile Revenue Per User

By Tom Dotan · Feb 26, 2015 10:13am PST

Google said Thursday that it is going to let app developers pay to promote their apps in its app store, a move aimed to wring more revenue from mobile devices. But right now, when it comes to making money from mobile users, it’s still far outpacing its rivals on that front. That’s the clear picture that emerges when you compare how much... Google said Thursday that it is going to let app developers pay to promote their apps in its app...

Postmates CEO Bastian Lehmann. Photo by Bloomberg.

The Murky Economics of Food-Delivery Apps

By Steve Nellis · Feb 17, 2015 10:35am PST

Hundreds of millions of dollars are chasing the question of how to order food from a smartphone. Success will depend on which service can maximize revenue and profits through a combination of charging restaurants and diners. Different services are taking different approaches. Hundreds of millions of dollars are chasing the question of how to order food from a smartphone....

Younger Tech Firms Learn Art of Control

By Martin Peers · Jan 29, 2015 11:01am PST

Younger Tech Firms Learn Art of Control

By Martin Peers · Jan 29, 2015 11:01am PST

As most investors and corporate executives know, Wall Street is driven by short-term expectations. That means any CEO wanting to make big bets that will play out over the long term better have absolute control of his or her company. Otherwise, activist investors are apt to appear. That’s a lesson taken to heart by the generation of tech... As most investors and corporate executives know, Wall Street is driven by short-term...

Art by Tom Dotan.

YouTube Creators Near Their Audience Limits

By Tom Dotan · Jan 13, 2015 10:00am PST

The world of YouTube creators is reaching maturity, revealing an interesting pattern. For a medium that has threatened to replace television, the YouTube audience has started to look TV-like. Different channels are approaching different subscriber ceilings based on their genres. And that pattern could make online video more appealing to... The world of YouTube creators is reaching maturity, revealing an interesting pattern. For a...

Art by Jessica Lessin.

Fast Climbers

By Jessica E. Lessin · Dec 11, 2014 11:34am PST · 2 comments

Skyrocketing private tech valuations are the norm these days, causing us to wonder how the pace of growth of today’s high-fliers compares to high-fliers of the recent past. The Information crunched data supplied by PitchBook to identify private VC-backed companies whose valuations have climbed the fastest between financings since 2011. ... Skyrocketing private tech valuations are the norm these days, causing us to wonder how the pace...

Big Media’s Sports Rights Gamble

By Martin Peers · Nov 26, 2014 7:00am PST · 1 comment

Major entertainment companies have made some enormous bets on live sports as a guaranteed audience draw in coming years. Just how big? Around $50 billion for some of the biggest companies. That number—nearly six times what Netflix has committed to pay for content in coming years—is broadly how much ESPN’s majority owner Walt... Major entertainment companies have made some enormous bets on live sports as a guaranteed...

The Unicorns That Weren’t

By Amir Efrati · Nov 20, 2014 11:49am PST · 5 comments

The Unicorns That Weren’t

By Amir Efrati · Nov 20, 2014 11:49am PST · 5 comments

It’s been a headline-grabbing year for Internet M&A, with large-cap companies such as Apple, Facebook and Amazon.com making their biggest acquisitions in a long time, or ever. There have also been some multibillion-dollar consolidations (Zillow-Trulia, Priceline-OpenTable) as well as several high-profile spin-off announcements that... It’s been a headline-grabbing year for Internet M&A, with large-cap companies such as...

Media Cos. Should Stop Milking and Start Investing

By Martin Peers · Nov 6, 2014 10:36am PST

If there were ever a time when traditional media companies should be investing in growth, this should be it. Given weak TV ratings and ad revenues, and a pay-TV market that is only likely to decline, businesses built on pay television need to diversify. Instead, as this week’s Data Point chart shows, most traditional media companies are... If there were ever a time when traditional media companies should be investing in growth, this...

Source: CB Insights and eMarketer.

A Case for More Venture Investing

By Jessica E. Lessin · Oct 28, 2014 10:56am PDT · 1 comment

Here’s a riddle about the venture industry. VCs are raising gigantic funds, and valuations are climbing. But dollars invested haven't caught up. There are a lot of reasons for this, first and foremost the relatively small amount of supply, aka companies to invest in. It’s important to keep in mind amid growing questions about... Here’s a riddle about the venture industry. VCs are raising gigantic funds, and valuations...