Shares in newly-floated Broadbase Software Inc, the maker of internet customer management and analysis software, rose by 18.75% to $38 at the end of last week on news of seven contract wins with .com firms. The new customers are all internet traders which offer services like bulk purchasing, discussion forums, business testing or insurance quote comparison. They are Ashford.com Inc, InsWeb Corp, Industrial Purchasing Services, Mercata Inc, Mercury Interactive Corp, Oniva.com and RemarQ Communities Inc.
Broadbase’s technology enables firms trading online to measure and map their effectiveness, analyzing surfers’ clicking patterns and internet behavior. Broadbase VP International Anthony Foy says most internet start-ups are flying blind with no real reference points for how their web sites are read and received.
The company’s main competition is E.Piphany, which floated on the same day and is based in neighboring San Mateo, although Foy is bullish about his firm’s prospects, saying every deal we’ve competed against [E.Piphany], we’ve won. The main difference, Foy says, is in the firms’ structures, with E.Piphany, headed by a former KPMG president and very consultancy-driven.
Menlo Park, California-based Broadbase raised $85m from the initial public offering last month. Average contracts for Broadbase are worth around $250,000, half of which is software. Foy says he expects to win between 20 and 30 in the next 12 months in Europe. France and Scandinavia are key markets, and Broadbase won its first major customer recently, Finnish mobile operator Oy Radiolinja Ab.
