Canton-based global mobile advertising firm Millennial Media recorded revenues of $56.1 million in Q3 of 2013, up from $47.3 million in revenue during Q3 of 2012. This keeps happening: more revenue, bigger loss.
The company also lost $4.6 million in Q3, according to the Baltimore Business Journal, compared to losses of $1.8 million during Q3 of 2012.
Revenues for Millennial Media were similarly high in Q2 of this year at $57 million — compared to Q2 revenues of $39 million in 2012 — but the company lost $3.1 million in Q2 of this year.
An article on BusinessInsider published in May 2012 pinpointed Millennial’s difficulty in turning a profit to the huge expansion of its sales staff following its spring 2012 IPO:
The technology and the medium may be cutting edge, but the revenue model is decidedly old school: Millennial makes its money by employing a lot of guys to drum up business through sales calls.
In other words, revenue growth following the IPO hasn’t kept up with expenses.
