Medallia has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company expects to price its 14.5 million shares in the range of $16 to $18 apiece, with an overallotment option for an additional 2.175 million shares. At the maximum, price, the entire offering is valued up to $300.15 million. The company intends to list its shares on the New York Stock Exchange under the symbol MDLA.
The underwriters for the offering are Merrill Lynch, Citigroup, Wells Fargo, Credit Suisse, Oppenheimer, SunTrust Robinson Humphrey, William Blair, Needham, Craig-Hallum Capital Group and Roth Capital Partners.
This company’s software as a service (SaaS) platform, the Medallia Experience Cloud, captures experience data from massive and expanding signal fields emitted by customers and employees on their daily journeys and it is a leader in the market for understanding and managing omnichannel experiences.
Medallia utilizes its proprietary artificial intelligence technology to analyze structured and unstructured data from these signal fields across human, digital and Internet of Things interactions at great scale to derive personalized and predictive insights that drive action with tremendous business results. Using this technology, enterprises reduce churn, turn detractors into promoters and buyers and create in-the-moment cross-sell and up-sell opportunities, providing clear and potent returns on investment.
In the filing, the firm detailed its finances as follows:
For the years ended January 31, 2018 and 2019, our subscription revenue was $201.8 million and $246.8 million, respectively, representing year-over-year growth of 22%, and our revenue was $261.2 million and $313.6 million, respectively, representing year-over-year growth of 20%. For the three months ended April 30, 2018 and 2019, our subscription revenue was $55.6 million and $71.7 million, respectively, representing period-over-period growth of 29%, and our revenue was $70.7 million and $93.6 million, respectively, representing period-over-period growth of 32%. For the years ended January 31, 2018 and 2019, and the three months ended April 30, 2018 and 2019, our net loss was $70.4 million, $82.2 million, $27.5 million and $2.6 million, respectively, which reflects our substantial investments in our business focused on our large market opportunity.
The company intends to use the net proceeds from this offering for working capital and general corporate purposes.