Apptio Announces Potential Price Range for IPO
Apptio has registered an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) in regards to its initial public offering. The company expects to price its 6 million shares between $13 and $15 apiece, with an overallotment option for an additional 900,000 shares. At the maximum price, the entire offering is valued up to $103.5 million. The company intends to list its shares on the Nasdaq Global Market under the symbol APTI.
The underwriters for the offering are Goldman Sachs, JPMorgan, Merrill Lynch, Barclays, Jefferies, RBC Capital Markets and Pacific Crest.
This is the leading provider of Technology Business Management (TBM) solutions. Apptio pioneered the TBM software category to provide the strategic business management system for the chief information officer because IT needed a data-driven system comparable to those leveraged by other enterprise functions such as sales, human resources and finance. The cloud-based platform and SaaS applications enable IT leaders to analyze, optimize and plan technology investments, and to benchmark their financial and operational performance against peers.
The TBM solutions consist of a powerful, cloud-based platform and a suite of SaaS applications: Cost Transparency, IT Benchmarking, Business Insights, Bill of IT and IT Planning. The data and analytics platform leverages proprietary modeling capabilities, powerful self-service analytics and planning workflows to enable customers to make actionable, data-driven strategic and operational decisions. The platform automatically aggregates, cleanses and establishes relationships across large amounts of customer data from disparate sources and maps the data into a standard IT operating model.
The customer base, includes over 40% of the Fortune 100, spans a broad spectrum of industries, including financial services, professional services, technology, energy, consumer goods, manufacturing, health care, media, retail and transportation, as well as federal and state government agencies. Apptio offers its solutions on a subscription basis. Customers’ annual IT spend ranges from less than $10 million to billions of dollars.
Apptio detailed in its report:
We had total revenue of $73.8 million, $106.6 million and $129.3 million in 2013, 2014 and 2015, respectively, reflecting a year-over-year increase of 45% and 21% in 2014 and 2015, respectively. For 2013, 2014 and 2015, our net losses were $23.7 million, $32.9 million and $41.0 million, respectively, as we focused on growing our business.
The company expects to use the net proceeds from this offering to repay $20.2 million principal and prepayment fees for amounts borrowed under our credit facilities, and the remainder for working capital and general corporate purposes.