Internet Brands Set for $45 Million IPO

Internet Brands, the company who has been on an acquisition shopping spree and most recently acquired ApartmentRatings.com and thatrentalsite.com just filed to raise $45 million in an IPO. Since 2004 they have acquired 55 internet related sites. The company lost $2.4 million for the first 9 months of 2007 and saw revenues decline as well.

Our revenues decreased from $65.2 million in the first nine months of 2006 to $65.0 million in the first nine months of 2007, with a quarter-over-quarter decline in our total revenues in three out of the last six quarters. This revenue decrease is primarily a result of a quarter-over-quarter decline in revenues in our consumer Internet segment in four out of the last six quarters. In particular, revenues from automotive dealers and manufacturers related to certain of our automobile-related websites have experienced significant revenue declines in recent periods. We may experience continued declines in these revenues and may be unable to achieve sustained growth in the future. In that case, our business and financial condition would suffer.