One of the big questions in local has been how well ReachLocal is doing. The SMB online advertising consultant was reportedly valued at $305 million after an October 2007 investment round. While ReachLocal says that number is “inaccurate,” the company’s ultimate success — still undetermined — would have important implications on the future of small-business marketing.
At this point, the company has expanded rapidly to 38 offices in the U.S., Canada, Australia (in 2007), and the U.K. (in late 2008). It has 800 employees, including 500 salespeople, and it has added display to its search offerings.
But we’ve also heard reports of scary levels of churn, both among customers and salespeople — something else the company says is inaccurate. While additional information isn’t provided on churn, a spokesman says its numbers are well south of the 60 percent+ levels cited in a recent report.
Now the company has opened the kimono a little, on the occasion of being ranked by Inc. Magazine as the 39th fastest growing private company in the U.S. The ranking is based on three consecutive years of revenues (provided to the magazine).
Specifically, the company reveals that it grossed $147 million in 2008 and is expecting even higher numbers for 2009, despite the sour economy. The company also released some macro data, noting that during the course of its history, it has fielded some 15 million phones calls and 10 million + online inquiries.