Local Corp’s New Patent Could Offer Company Significant Opportunities - Hurt of Ebay's Milo
Oct 14 2011, 01:43 by: John Gilliam |
Last week, the USPTO granted a patent to Local Corp (Nasdaq: LOCM) that appears to have significant implications for location based product and deal search offerings in the local space and has the potential to be the most valuable among a growing and increasingly valuable stable of local and directory search patents owned by Local Corp.
Patent #8,032,427 related to location based product search appears to encompass core aspects of services being offered by Groupon (GRPN) (Groupon Now), Living Social (Instant) and Foursquare; and is part and parcel of the product search functionalities offered by eBay's Milo (Nasdaq: EBAY), Gannett's ShopLocal (NYSE: GCI), Jiwire's NearbyNow, Retailigence and Goodzer. This patent could offer LOCM one of its most significant opportunities for near term licensing revenue, as we believe that the patent encompasses core aspects of the local product search offerings of these companies. This niche is growing rapidly, attracting significant capital and most importantly for LocalCorp’s purposes, the key players emerging in the space are not partners/revenue sources for Local Corp.
• Proprietary platform and know-how
»Real time business, product and services data integration
»Large scale local/commercial content production and syndication
»Very large scale CPC ad-serving and distribution
»Web indexing and local search relevance
»Very large scale SEO, SEM campaign expertise
»Local display ad production and syndication
»Web hosting and local/commercial domain name acquisition
• 12 patents issued, 7 pending
–Local web indexing (for indexing local web sites across the web)
–Pay per call for local and commercial searches via a mobile device (multiple patents) - The billion dollar industry question: How do we monetize mobile?
– Dynamic cascading menu search (for product search on tablets and smart phones)
– Bulk domain registration and content management (for very large scale SEO)
Zillow extreme overvalued - Local Corp extreme undervalued - only stupid idiots don't change
Income Statement of Local Corp (Market Cap = 35.5 million):
• Sequential revenue growth up 6% to $22.7 million in Q2 from $21.5 million in Q1
• Adjusted EBITDA up 72% to $1.2M in Q2 from $685K in Q1
That are on a yearly base only 0.45-times-revenues of Local Corp.
Zillow has 19.7-times-revenues - that is the 50.5-fold valuation of the idiotic low 0.39-times-revenues of Local Corp.
Income Statement Get Income Statement for Zillow (Market-Cap = 3,080 million):
View: Quarterly Data All numbers in thousands
Period Ending Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012
Total Revenue 38,966 34,337 31,915 27,765
Operating Income or Loss (3,802) 511 2,295 1,298