Local advertising marketplace operator Reply files for initial public offering

Reply files for initial public offering

SAN RAMON, Calif. — Reply Inc., which runs an auction service for local Web advertising, said Monday it has begun planning for an initial public offering.

Reply filed a registration statement with the Securities and Exchange Commission, but has not priced the offering or set a date.

Reply, founded in 2001, aggregates Web surfers by location and by the type of product they may be shopping for, to make it easier for companies to reach local customers. It sells advertising space using an auction system, mostly to companies in automotive, home improvement, insurance and real estate industries.

Reply also operates an exchange that lets advertisers resell unwanted traffic.

The company said its net income in 2009 totaled $2.5 million on $34.3 million in revenue, according to the SEC filing. In 2008, Reply had a net loss of $3.2 million on $23.3 million in revenue.