NEW YORK, NY -- (Marketwired) -- 10/24/14 -- LiveDeal, Inc. (NASDAQ: LIVE) CEO, Jon Isaac, is putting his money where his confidence is, and that's in his company and its growing mobile marketing platform, www.livedeal.com. Isaac announced earlier this week that he'd be purchasing shares of LiveDeal in the open market, and then he did just that. The company announced yesterday that the CEO purchased 100,000 common shares in the open market for approximately $305,880.
Isaac says he made the purchase because he strongly believes his company is undervalued, and he is confident in the direction LiveDeal is heading. And why not when LiveDeal's geo-location based deal-engine, which enables restaurants to publish "real-time" and "instant offers" to nearby consumers, has been quite the popular fit in the almost $700 billion dining industry since it launched in late 2013.
Restaurants in 50 of the largest US cities have deals listed on the platform, and after the company's 50-city ad campaign this past summer introduced many new restaurants and customers to the LiveDeal app and web site, the deal engine offers what very well could be the industry's largest single platform to find instant, real time restaurant deals. With about 10,000 restaurants participating all over the US, LiveDeal has about 10,000 deals available to diners who use its platform.
The CEO's confidence was likely heightened with a partnership program his company initiated with several of the country's largest chain restaurants. The program will connect those chain restaurants directly with LiveDeal's growing consumer audience through the placement of free co-op television ads in exchange for exclusive savings offers distributed through the LiveDeal apps and website.
This initiative should help LiveDeal gain some real name recognition alongside well-known national restaurants, while at the same time, help the company to gain even more buy-in from the industry and grow the customer base that uses its apps and website.
But the company's future growth doesn't stop there. LiveDeal made an acquisition last quarter of online retailer www.moderneveryday.com that furthers its evolution in the deals space to offer consumer deals across a number of verticals. According to Inc. Magazine, in 2012, Modern Everyday made $1.2 million in annual revenue, but by 2013, that revenue had grown to almost $10 million representing a 3-year growth rate of 700 percent.
Modern Everyday, which offers a host of products including kitchen items, toys, sporting goods, beauty supplies and even products for babies, has been a part of the Inc. 5000 (http://www.inc.com/profile/modern-everyday) for three straight years and counting. Acquiring a fast-growing retail platform that can add immediate revenues to LiveDeal's bottom line makes a lot of sense, and it likely adds to a CEO's confidence who realizes that adding products should result in faster revenue growth, and one more reason for users of the company's apps and website to keep coming back to LiveDeal.
After all there is no other player in the deals space with LiveDeal's sizable offerings that are only worth a few million dollars, so if the company can achieve only 5% of the "big boys" valuation Jon Isaac's company would be worth at least 5 times the $40 million it's worth today. Clearly yesterday's purchase in the open market shows the CEO is confident he can get LiveDeal there.
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Source: LiveDeal, Inc.
Released October 24, 2014