We just published the second update of companies and products in the online community and social networking space. The report is called "Online Community Platform Company and Product Update: Good Results from 2H 2008, but Slowing Down."
I've added three companies to the watch list, with Blogtronix, Pluck, and Powered now joining Awareness, HiveLive, Jive Software, Leverage Software, Lithium Technologies, LiveWorld, Mzinga, Small World Labs, Telligent, and Webcrossing. For each company, we look at how they fared during the second half of 2008 with regard to customer acquisition; changes to products, services, and pricing; new partnerships; financial results; and organizational changes. (Also included are newsworthy events from the first few months of 2009.)
Results for the second half of 2008 were mixed. For most companies, customer acquisition increased, although largely at a slower rate than during the first half of the year. A few companies, however, posted record earnings. About half the companies reduced headcount in reaction to the current economic downturn, although none drastically; some companies actually continued staffing up aggressively. And there was little outside investment in 2H 2008, where the first half of the year saw a collective $51 million raised by 10 companies through private financing.
For the most part, companies kept busy on the continued technical development of their community platforms and social media applications. New service offerings were introduced, and new strategic partnerships were formed. These are the types of activities we expect during rough economic times, as companies focus on their core competencies and look to increase revenue and reach through new services and channels.
