Amplitude has listed on the stock exchange
The market continues to experience a boom in technology companies that are actively entering the stock market. Not so long ago this list was added by another player – the American service Amplitude. The company carried out a direct offering without attracting new capital. Immediately after the shares appeared on the stock exchange, their value went up sharply. Current Amplitude investors began selling their securities at $50 apiece, with the initial price set at $35.
Interest in the shares increased the company’s capitalization to $7 billion, and it happened in just the first day of trading. At the same time, Amplitude’s management was expecting to raise about $5 billion. Before going public, the analytical service was valued at $4 billion. The last round of financing, in which the company received $150 million from the Sequoia Capital venture capital fund, played a decisive role in its value.
As of now, Amplitude has $72 million in revenue. Compared to the same period last year, the figure has grown by 56%. The loss is listed at $16.6 million, its indicator has not changed.
Amplitude provides product analytics services; with its help, the business researches consumer preferences, selecting which products are popular and which people don’t need.
The company was founded in 2012 and started with Sonalight, a service that was developed by Y Combinator accelerator participants. This application made it possible to translate voice text into messages and send them. In addition to the product itself, the developers presented a special program that helped track and analyze the use of Sonalight by its users. At the same time, it was the software that attracted the attention, however, not of investors, but of other participants of the accelerator – beginning startups. They asked the authors for access to the program. Two years later, at the same day of presentations at Y Combinator, the same developers came forward, but already with a new idea called Amplitude.
Now the project has grown from a few people into a large company with Disney and Walmart as clients. Amplitude is also considered a promising project for investors. The service has been making funding rounds since 2015, and in that time it has raised more than $330 million. Sequoia Capital and a Singapore sovereign wealth fund are considered the main investors. Benchmark owns a 15% stake in Amplitude and was the first investor to believe in the service’s success, investing $5 million in 2015. The shares owned by Benchmark are now valued at $835 million.
