AppDynamics, a provider of software that helps companies monitor and manage business applications, has unveiled plans to list shares on the NASDAQ under the symbol APPD for between $10 and $12. A midpoint pricing would raise $132 million and value the company at $1.38 billion, which would be a noticeable step down from the $1.9 billion valuation AppDynamics was rumored to garner with its last private financing.
The Bay Area company has seen marked growth in recent years, most recently increasing annual revenue from $81.9 million in 2015 to $150.6 million in 2016—an 84% jump. But while revenue has increased, so too have net losses: from $94.2 million in 2015 to $134.1 million last year, a 42% leap. AppDynamics has raised roughly $365 million in venture funding since its 2008 founding, including a $158 million round in December 2015. Greylock Partners (20.4% pre-IPO stake), Lightspeed Venture Partners (20.4%) and IVP (8.2%) are among the company’s backers.
Following a year that was notably bare of tech IPOs, AppDynamics looks to be one of the first to take the plunge into the public markets in 2017. While the company is likely going to take a valuation haircut, a strong showing out of the gate and through the following months could be just what’s needed to spur more flotations—something for which VC investors have certainly been waiting.
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Article by PitchBook
