CloudCommerce
| Company type | Public |
|---|---|
| Industry | Digital marketing, Analytics |
| Predecessor | Warp 9 |
| Founded | 1999 in Texas, United States |
| Headquarters | United States |
Key people | Andrew Van Noy (CEO), Gregory Boden (CFO) |
| Products | Digital marketing solutions, Data science services, Website development, Creative design, Web hosting |
CloudCommerce, Inc., headquartered in the United States, focuses on delivering solutions in digital marketing and analytics. Previously listed on the OTC Pink market under the ticker CLWD, the company later rebranded as AiAdvertising and now trades as AiAd.
History
Established in Texas in 1999 and formally incorporated in Nevada in 2002 under the name Warp 9, CloudCommerce operates several subsidiaries such as Roaming Messenger Inc. and Latinocare Management Corp. Andrew Van Noy assumed the role of CEO in 2012; he holds a Bachelor of Science degree from BYU and previously served as Vice President at PageTransformer. In 2019, his total compensation amounted to $195,000 along with 18 million unexercised stock options. The Chief Financial Officer, Gregory Boden, received $120,000 plus 70 million unexercised options during the same period.
By March 2020, the company’s portfolio included CLWD Operations (formerly Indaba Group), Parscale Digital (specializing in marketing), WebTegrity (focused on website development), Data Propria (data science services), Parscale Media (web hosting), and Giles Design Bureau (creative design).
In 2015, CloudCommerce secured ownership of its trademark and domain name.
In August 2017, CloudCommerce purchased several entities co-owned by Brad Parscale—known as Donald Trump’s digital campaign manager—and Jill Giles for $7.9 million paid in stock. This acquisition encompassed Giles Design Bureau, Parscale Digital, and Giles-Parscale, which leases office space to Parscale Digital under a five-year agreement valued at nearly $120,000 annually. Separately, Parscale Media was acquired for $1 million in cash. The company appraised the Parscale Creative brand at close to $2 million and valued Parscale Media’s brand at $100,000, aiming to capitalize on their established reputations within digital advertising. Following this transaction, Parscale became a member of CloudCommerce's board.
At the close of 2019, CloudCommerce recorded a $6 million impairment linked to the Parscale Creative acquisition—including the "Parscale" brand—and an additional $744,000 write-down related to Parscale Media’s purchase.
Brad Parscale resigned from his board position in December 2019 but continues to manage Parscale Strategy, which maintains the office lease through Giles-Parscale.
In November 2017, CloudCommerce expanded by acquiring WebTegrity for $900,000 in stock.
Giles-Parscale generated $94 million from its involvement in Trump’s 2016 presidential campaign and attracted attention for employing Cambridge Analytica psychometric techniques alongside Facebook advertising strategies.
CloudCommerce launched Data Propria in February 2018, bringing on board former Cambridge Analytica personnel.
Ranked 235th on Deloitte’s 2019 Technology Fast 500 list for North America, CloudCommerce reported revenues of $9.2 million in 2019 with a net loss of $10.1 million—primarily due to a $6.76 million writeoff. In comparison, its 2018 revenue was $11.6 million with a net loss totaling $2.9 million. The company’s auditor expressed significant concerns regarding its ability to continue operating as a going concern.
As of late 2019, key shareholders included Brad Parscale holding 34.9%, Andrew Van Noy with 15.8%, Zachary Bartlett at 13.9%, Ryan Shields owning 9.5%, Blake Gindi with 8.7%, and Gregory Boden possessing 4.1%.
Amid the COVID-19 pandemic, CloudCommerce secured a federally guaranteed Paycheck Protection Program loan amounting to $780,680 from Cache Valley Bank on May 5, 2020. CBS News reported that Brad Parscale remained the largest individual shareholder at that time.
Controversies
Before joining CloudCommerce, senior leaders Andrew van Noy and Jonathan Lei, linked to the company and its forerunner, were accused of financial improprieties. In March 2020, Facebook took down advertisements from CloudCommerce due to deceptive statements, such as guarantees of a 10% high dividend yield.