In response to the ongoing troubles on Wall Street, Convio today withdrew its bid to become a publicly-owned company.
The Austin-based software provider notified the Securities and Exchange Commission, which regulates U.S. stock markets and public companies, that it would remain a privately-held entity, says Convio spokesman Tad Druart.
“Good companies don’t go public in bad markets,” he says of the company’s decision to withdraw. “In going public, we have a responsibility to employees, shareholders and clients to get the best valuation we can, and that’s not going to happen right now.”
The announcement comes a day after Convio, which provides constituent-management software to nonprofit clients, announced positive financial performance for the most recent quarter.
In the second quarter of 2008, ended June 30, the company’s revenues grew to $14.7 million, up 35 percent from the same quarter in 2007.
Income from operations, when excluding stock-based compensation and costs associated with the purchase of GetActive Software, jumped to $114,000, up from a loss of $1.4 million in the second quarter of last year.
When factoring in those expenses, Convio trimmed its operating loss to $893,000 for the quarter from $2.15 million in the same period last year.
The company’s strong financial position, including an operating cash flow of $1.3 million for the quarter, was another factor in the company’s decision to delay its plans to go public, Druart says.
Revenue from subscription services grew 30 percent during the second quarter, while usage revenue surged 62 percent.
During the first half of this year, the company processed $377 million in online contributions, a doubling over the first half of 2007.
And the company added several new clients during the second quarter, including the Boys and Girls Clubs of America and Susan G. Komen for the Cure, bringing to more than 1,250 the number of total clients.
The company still plans to go public sometime in the future, Druart says.