Medallia Enters the Market With a Bang

Medallia Inc. (NYSE: MDLA) entered the market with a bang on Friday. The firm priced its shares at $21 apiece, above the expected price range of $16 to $18 per share, and entered the market just over $33. It offered 15.5 million shares in total, with an overallotment option for an additional 2.325 million shares. At the $21 price point, the entire offering was valued up to $374.325 million.

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.

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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.

Shares of Medallia were last seen up 62% at $34.00, in a range of $32.58 to $35.40 on the day thus far. Also, about 7 million shares have moved on the day as of 11:15 a.m. Eastern.
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