AppDynamics Files for IPO

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AppDynamics has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No pricing details were listed in the filing, but the offering was valued up to $100 million, although this number is usually just a placeholder. The company intends to list its shares on the Nasdaq under the symbol APPD.

The underwriters for this offering are Morgan Stanley, Goldman Sachs, JPMorgan, Barclays, UBS Investment Bank, Wells Fargo, William Blair and JMP Securities.

This year has been somewhat dismal for IPOs, but prospects could pick up next year. With 2017 just around the corner, more companies are looking to have IPOs as the markets are reaching new highs.

AppDynamics offers an innovative, enterprise-grade application intelligence software platform that is uniquely positioned to enable enterprises to accelerate their digital transformations by actively monitoring, analyzing and optimizing complex application environments at scale. Its integrated suite of applications monitors the performance of software applications and IT infrastructures, down to the underlying code, and automatically correlates them into logical “business transactions,” such as booking a flight in a web browser, transferring money on a mobile device, getting directions through a car’s navigation system or locating physical goods in an inventory system.

Real-time information about the performance of these business transactions provides customers with actionable insights into their end-user experiences, the activities required to improve them and the business outcomes associated with them. The integrated suite of applications enables customers to make faster decisions that enhance end-user engagement and improve operational and business performance.

AppDynamics described its finances in the filing as follows:

Our revenues for the fiscal years ended January 31, 2014, 2015 and 2016 were $23.6 million, $81.9 million and $150.6 million, respectively, representing year-over-year growth of 247% and 84%. For the nine months ended October 31, 2015 and 2016, our revenues were $102.8 million and $158.4 million, respectively, representing year-over-year growth of 54%. Our billings, which consists of our total revenues plus the change in our deferred revenue, for the fiscal years ended January 31, 2014, 2015 and 2016 were $62.1 million, $140.2 million and $258.5 million, respectively, representing year-over-year growth of 126% and 84%. For the nine months ended October 31, 2015 and 2016, our billings were $164.7 million and $237.0 million, respectively, representing year-over-year growth of 44%.

The company intends to use the net proceeds from this offering to repay its debt, with the remainder going toward working capital and general corporate purposes.