Medallia IPO: What You Need To Know

There is a tech offering in the pipeline that's likely to satiate growth-hungry investors.

The IPO Terms

San Francisco, California-based Medallia, Inc. MDLA on Monday filed for a 14.50-million common stock offering at an estimated price range of $16-$18 apiece, according to the preliminary prospectus filed with the SEC.

Of the total number of shares earmarked for the offering, 13.325 million shares will be sold by the company and 1.175 million by selling shareholders.

Medallia also said SCGE Fund, L.P., an existing shareholder, has indicated an interest in purchasing up to 4% of the shares offered through the offering.

The shares have been approved for listing on the NYSE under the ticker symbol MDLA.

Bank of America Merrill Lynch, Citigroup, Wells Fargo Securities and Credit Suisse are the lead underwriters for the offering.

See Also: A Halftime Report Of The IPO Market In 2019

The Company

Medallia is a SaaS provider of enterprise software for experience management, and its SaaS platform – the Medallia Experience Cloud – captures experience data from signal fields emitted by customers and employees on their daily journeys.

It uses its proprietary AI technology to analyse structured and unstructured data from the signal fields across human, digital and IoT interactions to derive personalized and predictive insights.

"Using our 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," Medallia said in the filing.

The Finances

For the year ended Jan. 2019, Medallia generated revenues of $313.642 million, 20% growth from the $261.20 million reported for the previous year. The company reported revenues of $71.71 million for the April quarter.

The net loss for the year ended Jan. 2019 widened from $70.36 million to $82.23 million.

The company, founded in July 2001, generated about 79% of its fiscal year ended Jan. 2019 revenues from sales of subscriptions.

As of April 30, the company had 565 customers, up 20% from last year. Its dollar-based net revenue retention rate was 119% as of April 30.