Web-Based Firms Branch Out

Recent purchases helped United Online reach the top spot in this year’s largest internet-based firms list, which is ranked by 2010 revenues. The Woodland Hills-based firm reported $920.6 million in revenues with 1,699 employees company-wide in its 14 facilities. Founder and CEO Mark Goldston said the company started out in 2001 as an internet service provider, but quickly recognized the need to diversify its services. In 2004, the company bought Classmates.com and turned it into Memory Lane, which is where most of the company’s energy is focused, said Goldston. “Memory Lane is an old classmates site where people can reconnect, but we’ve also added millions of pieces of nostalgic content,” he said. However, the purchase of FTD, a floral company based in Chicago, provides United with majority of its revenue, said Goldston. United’s purchase of My Points, a service that allows customers to earn points with each purchase and redeem those points for gift cards, is another important reason for the company’s growth. “We’re really proud of what we’ve accomplished,” Goldston said. Westlake Village-based Valueclick, Inc. is the No. 2 firm with revenues of $430.8 million, and at No. 3 is Woodland Hills-based ReachLocal, Inc. with revenues of $291 million. Following at No. 4 is uSamp, a market research firm based in Encino. The company reported revenues of $23 million, an amount which is expected to double this year, said Matt Dusig, CEO and co-founder. “There is just a demand for our services, because we’ve built a really great world-class technology and our clients see that,” he said. In January, uSamp opened an office in London and will be adding about 70 people to its current employee base of 175, said Dusig. Opening a location in either Asia or Australia could be an interesting addition to the company, he added. CPI Solutions in Camarillo rounds out the top five with revenues of $13.9 million. Cloud Creek Systems in Westlake Village is No. 6 with revenues of $7.6 million; SADA Systems in North Hollywood is No. 7 with revenues of $6.5 million; USI Technologies in Westlake Village is No.8 with revenues of $3.2 million; AmeriTel in Northridge is No. 9 with revenues of $3 million; and AltrulT in Mission Hills is No. 10 with revenues of $1.5 million. Download the 2011 SFV’s LARGEST INTERNET-BASED FIRMS list (pdf)