TravelTube: S-1 Findings

  • Financials & metrics
    • Total Revenue was $ 175m, last year.
    • The company was not profitable. It lost $ 90m last year.
    • 50 million monthly active users (MAU).
    • The company saw 50% quarterly MAU growth. Much of this has been driven by word of mouth, travelers telling each other about it.
    • Of those 50 million monthly active users, 29 million are active on a daily basis. Users spend on average 30 minutes per day on the site and have 691 timelines views per year.
    • The company has an advertising revenue of $ 3,50 per active user (ARPU). This revenue had increased by 500% from the previous year
    • Number of employees grew to 20% on a quarterly basis.
  • Growing market
    • Online advertising is a market that is seeing a 7% compounded annual growth rate, according to industry sources.
    • Mobile Advertising is seeing a 30% growth rate.
  • The Business
    • Traveltube’s Mission is to give everyone the power to create and share travel experience and recommendations instantly without barriers. The trend towards authentic travel also drives a need towards authentic documentation of travel experiences. Most important, viewers enjoy the conversational tone and the voice fellow travelers.
    • By providing travelers with the power to share, we are starting to see travelers become more active as content producers.
      • In particular, they provide visual tools as well as publishing tools to help creators to build documentaries. Documentaries are collections of travel videos, providing an order that offers a bigger context on the country than just seeing snippets. It turns travelers and video creators into documentary film production studios.
      • Users can also enhance these stories with beautiful footage based on sponsored content.
    • The company generates their advertising revenue by selling our Promoted Products
      • Promoted Products consist of the following:
        • Promoted Videos: Promoted Videos are labeled as “promoted,” and appear within a user’s timeline
          • Through TravelTube Labs, the company develops cutting edge branded videos together with its in-house editorial team and influencers. The company seeks to understand the brand’s strategic goals match it with the voice of an influencer, and then build custom content solutions that match the voice of the brand and influencer
        • Advertisers can attach additional content, such as highlights and behind-the-scenes content to videos, providing users with context that complements their knowledge of an area.
        • Through TravelTube Connect, an advertising API (application programming interface), the company hooks up directly with integrators, that sell TravelTube ads. The API offers campaign specific tools, such as data and analysis of performance, as  well as content creation tools to make it easier to buy performing ads on the platform, as well as build stories. So far 30% of the top tier agencies are already connected.
      • Advertising towards the highly attractive target audience of travel aficionados with an authentic voice enables, top advertising rates.
    •  Integrations
      • Many websites have integrated with TravelTube to source relevant and authentic content
  • Risk Factors
    • Reliance on advertising.  The company is highly dependent on advertising revenues. Mitigation: sponsored content enables new forms of monetizing audiences
    • Shift to mobile: monetizing mobile audiences through advertising is not easy. The company is working on monetizing mobile ads through sponsored content
    • Competition from cross-vertical video sites
    • TravelTube is a young company
    • The company may fail to engage customers in the long-term.

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