initial public offerings (IPOs) trading on American exchanges

Thursday, April 11, 2019

PagerDuty (PD) began trading on the NYSE on Thur 11 Apr 2019

PagerDuty offers a subscription service that allows businesses to improve the constant interplay between software developers and operators—so-called DevOps—within their organization and lets them use real-time data to address incidents that occur. Competitors include Atlassian Corp.’s (TEAM) OpsGenie and Splunk Inc.’s (SPLK) VictorOps products.
  • The cloud-based digital management platform priced 9.1 mln share IPO at $24.00 per share, above the revised expected range of $21-23
  • Shares of PagerDuty  surged more than 59% to close at $38.25 Thursday, giving the company a valuation of $2.82 billion, according to FactSet data. 
  • PagerDuty was founded in 2009 by three former Amazon developers. In 2016, the company hired industry veteran Jennifer Tejada as its CEO. She owns about 6 percent of the company. The biggest investors are Andreessen Horowitz at 18 percent before the offering, followed by Accel at 12 percent.
  • The so-called DevOps market is expected to reach $10.3 billion a year by 2023, up from $3.4 billion last year, according to research from MarketsandMarkets. Ethan Kurzweil, a partner at Bessemer Venture Partners, one of PagerDuty’s biggest investors, said that these sorts of developer tools are gaining importance as software becomes central to the way more companies do business.

Chief Executive and Chairwoman Jennifer Tejada, who owns a 5.7% stake in the company following the offering, said PagerDuty is looking to serve an estimated $25 billion market made up of about 22 million software developers whose job it is to make sure that every app on our phone or program on our PC is working the way it’s supposed to and cut down on downtime. Tejada said in a telephone interview with MarketWatch from the New York Stock Exchange that about 300,000 developers currently use the platform.

PagerDuty CEO Jennifer Tejada

PagerDuty, whose software helps technical teams quickly spot problems with applications and respond to incidents such as customer complaints, is used by developers at over 11,000 companies, including Slack, Box, Gap and Netflix. 

PagerDuty recorded a loss of $40.7 million on revenue of $117.8 million in the fiscal year ended Jan. 31, 2019, after a loss of $38.1 million on revenue of $79.6 million in the same period a year ago. The number of customers paying $100,000 or more a year for the service rose to 228 from 144 in the previous year.

PagerDuty planned to sell 8.5 million shares in the IPO, while selling stockholders offered 570,000 shares. Underwriters were offered options for an additional 1.36 million shares.

No comments:

Post a Comment