Foursquare Says It Has 'Proven Its Business Model' And Is Pulling In $1 Million Ad Deals

Alyson ShontellAug 30, 2013, 00:48 IST

Robert Libetti/Business InsiderThings are looking up for Foursquare, Dennis Crowley's location exploration company. It just soft launched a new alerts feature that Crowley believes is pivotal, and it may pursue a strategic investment from a large company, according to Bloomberg's Sarah Frier. Foursquare's revenue, which was a troubling $2 million last year, is growing as well. The company is expected to generate $10-15 million this year. It has five advertising products, all of which are working evenly, a company spokesperson said today. Foursquare had two ad offerings at the beginning of this year and was only testing one last summer when Steve Rosenblatt, Foursquare's CRO, joined. Advertisers seem pleased with their Foursquare results, and Foursquare says its sales people have closed multiple nine-figure campaigns. The revenue momentum, although still not large enough to sustain the company, has employees feeling charged. In an interview with Bloomberg's Sarah Frier, Rosenblatt was optimistic. "I think we've proven our business model," he said. "“Our business model is very clear and it’s working, doing what we thought it would do, if not more. It’s all well ahead of what we anticipated.” Growth on the app is still stalled at about 35 million registered users and 6 billion check-ins. Foursquare won't reveal how many monthly active users it has. But the spokesperson says Foursquare's API is being pinged a whopping 100 million times per day and that 50 million people visit its website every month. 1.5 million new users are registering for the app every month.

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Foursquare Says It Has 'Proven Its Business Model' And Is Pulling In $1 Million Ad Deals