Amplitude Direct Listing Could Fetch $4.5 Billion Valuation

Amplitude (AMPL) is set to launch its initial public offering in the form of a direct listing that could value the software company near $4.5 billion. The Amplitude direct listing will begin trading Tuesday.


The company makes data analytics software that its customers use to enhance the performance of business operations by precisely measuring customer behavior. For example, it analyzes and measures outcomes such as purchases and order size to help pinpoint the performance of digital products that drive their business. Amplitude refers to this as “digital optimization.”

San Francisco-based Amplitude, founded in 2011, is tapping into a big emerging trend. Analysts see a historic, global shift in deploying digital technologies across every domain and platform. This shift includes cloud computing, e-commerce, digital payments, artificial intelligence, 5G wireless and videoconferencing.

Amplitude customers include Ford (F), Walmart (WMT), and digital upstarts like Calm, Instacart and Postmates.

“We believe we are in the very early stages of a large opportunity and that we can help companies of various sizes and digital maturities build great products through data,” Chief Executive Spenser Skates said in an Amplititude direct listing filing.

Amplitude Direct Listing Benefits

The Amplitude direct listing is also known as a direct public offering. In a typical IPO, an investment bank such as Goldman Sachs or JPMorgan Chase receives large sums to coordinate and manage the promotion, pricing and issuance of shares.

A direct listing avoids those fees by not using traditional IPO underwriters. The business and existing shareholders instead sell shares directly to the public. Also, it does not involve any underwriters or other intermediaries.

In addition to the Amplitude direct listing, other companies that have used that route include Spotify Technology (SPOT), Uber (UBER), Airbnb (ABNB) and Pinterest (PINS).

For the six-month period ended June 30, the company reported revenue of $72.3 million. That was up 57% from the year ago period. It showed a net loss of $16.5 million, vs. $16.6 million a year ago.

This year, Amplitude expects revenue in the range of $160 million to $162 million. It expects a loss of $23 million to $25 million.

The Amplitude direct listing will trade on the Nasdaq under the ticker AMPL. The shares are expected to price near $35.40, with a $4.5 billion valuation being fully diluted.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.


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