• by P.J. Bednarski , Staff Writer @pjbtweet, July 3, 2013

YuMe, a top digital ad network on Tuesday filed for a $65 million initial public offering, following on the heels of rival Tremor Video’s less-than-spectacular debut on the New York Stock Exchange last week.   

YuMe, based in Redwood City, Calif, recorded a $3.3 million net loss in the first quarter of this year, and carries $25.3 million in accumulated deficit, according to Ad Age.  The publication said YuMe closed 2012 with a $6.3 million profit. Its  revenue was $116.7 million in 2012, which represented a 70 percent increase over 2011.

 It plans to use the stock symbol YUME on the New York Stock Exchange.

Tremor debuted on Wall Street at $10 a share last week, and dropped steadily. It was trading at $7.71 a share on Wednesday morning.

In its S-1 filing, YuMe said it attracted 257 million monthly unique viewers during May 2013 and delivered over 8  billion video advertising impressions last year.  Its customer base includes 64 of the top 100 U.S. advertisers. 

YuMe has raised $74.4 million in funding since launching in December 2004. It plans to list on the New York Stock Exchange under the ticker symbol YUME.

Like other digital ad agencies, YuMe and Tremor think digital advertising is where the future is. But Wall Street has lately been generally cool to Internet stocks, starting with Facebook, as investors mull what direction the fast-moving business is headed. Also, Tremor probably did not benefit at all from a market that got jittery on suspicions the Federal Reserve would tighten the money supply. It's not just tech stocks' IPOs that have suffered. Three weeks ago cosmetics firm Coty also had a disappointing debut.  

Commenting on the IPO, TechCrunch wrote, that  “while Tremor stumbled out of the gate, YuMe actually might be better positioned to please investors, at least from a numbers perspective. Its revenue, gross margin, and net income were all greater than what Tremor showed in its initial filing. YuMe is also growing a heck of a lot faster, perhaps due to the proliferation of connected devices serving up video ads.”

YuMe was founded in 2004 by Jayant Kadambi and Ayyappan Sankaran who,  according to VentureBeat  realized early on that the online video sector would need a strong ad model. YuMe launched in 2007 and raised $72. 9 million in 2011 from Accel Partners, BV Capital, DAG Ventures, Intel Capital, Khosla Ventures, Menlo Ventures, Samsung Venture, and Translink Capital.supply.

pj@mediapost.com