Data analytics firm Amplitude has filed paperwork for a direct listing that it hopes will benefit from investor enthusiasm for digital optimization.
The direct listing on Nasdaq will enable Amplitude’s shares to be publicly traded but it is not seeking to raise capital from the listing. A Series F round of private funding in June raised $150 million for the company at a valuation of $4 billion, bringing its total capital raise to $336 million.
“Amplitude is the latest [San Francisco] Bay Area company to raise a large round that enables it to go public without a full IPO, roadshow, or raising additional capital,” the San Francisco Business Times reported. “Coinbase and Roblox used the approach earlier this year.”
Amplitude’s product analytics platform allows a company to see how customers use certain features of its website or app and how that could drive revenue in the future. According to the prospectus it filed on Monday, it has “more than 1,200 paying customers globally, from the most ambitious startups to the largest global enterprises.”
The company, which was founded in 2012, lost $24.6 million on revenue of $102.5 million in 2020, the filing shows, while revenue in the first half of this year rose 57% to $72.4 million.
The prospectus says Amplitude is a pioneer of digital optimization software, which has “become mission-critical to companies of all sizes and in all industries to keep up with the pace of innovation required to survive in the digital-first world.”
While businesses, Amplitude says, have traditionally used “a patchwork of systems, including web and marketing analytics, business intelligence tools, and sentiment tools, to help understand how their digital product investments drive business outcomes,” digital optimization “leverages the power of data-driven products” to automatically create a linkage between product decisions and business outcomes.
According to Amplitude, the market for digital optimization “represents a significant and underpenetrated market opportunity today, which we estimate to be approximately $37 billion in 2021.”
The company has said its customers include Ford, Walmart, Burger King, Atlassian, Postmates, Nerdwallet, and NBCUniversal.