Amplitude (company)
Amplitude Inc is an American public company focused on analytics products including Amplitude Analytics, Amplitude Recommend, and Amplitude Experiment which it refers to as a Digital Optimization System for businesses.[1] The company listed publicly on the Nasdaq stock exchange under the ticker symbol AMPL on September 28, 2021 at a market capitalization of $7.1 billion after it's first day of trading.[2] It has been discussed both for the unusual timing of it's IPO, shortly after a major funding round; as well as it's approach to IPO, choosing a direct rather than traditional listing. Both of these choices have been noted for bucking recent trends.
History[edit]
The company was founded in 2014 by Spenser Skates and Curtis Liu.[3] The company came after multiple prior attempts at founding a company by the pair of founders, including one idea which helped them get accepted into the startup accelerator Y Combinator in 2012.[4] The company's first product, Amplitude Analytics, was listed as the #22 software product in 2021 by popular review site G2 Crowd.[5] The addition of their Amplitude Recommend, and Amplitude Experiment products enabled what the company calls its Digital Optimization System. Amplitude acquired a two other analytics software companies before going public, adding to its product portfolio. On March 10, 2020 Amplitude acquired ClearBrain[6], a predictive analytics company founded in 2016 by Bilal Mahmood, and Eric Pollmann.[7] The following year on May 12, 2021, Amplitude acquired Iteratively, a data pipeline company[8] founded in 2019 by Patrick Thompson and Ondrej Hrebicek.[9]
Early IPO[edit]
After several other rounds of funding, in June of 2021 the company received $150 million in its final private investment led by the venture capital firm Sequoia Capital at a valuation of $4 billion.[10] Despite the recent funding, the company's CEO decided to take Amplitude public because he believed it would make the company stronger as Facebook founder Mark Zuckerberg had claimed after Facebook's IPO. Despite the company's age at nine years, this decision was viewed as a reversal from the trend of tech companies staying private for as long as possible. Amplitude's ample funding would have allowed them to freely choose either path, public or private, highlighting the break from the prior norm.[11]
Direct listing[edit]
Amplitude was also the subject of much discussion for its unusual choice of a direct public offering as it approached IPO. This decision which was seen as paving the way for yet more direct public offerings, another break from recent norms. Spenser Skates, Amplitude's CEO, stated that he viewed the selection of this style of IPO to be necessary for all companies, noting the high cost of the under-pricing which is typical of standard IPOs. However, a direct public listing was at least partly enabled by the company's $300 million cash on hand, meaning Amplitude did not need to raise significant funds from their IPO. Not all other companies can afford this choice.[12] Amplitude held their public offering on the Nasdaq stock exchange on September 20, 2021. The first day of trading increased the company's value from $5 billion to $7.1 billion, leading the company to claim that traditional IPOs are antiquated.[13]
Company growth[edit]
Amplitude benefited from the increasing trend of businesses moving toward digital services during the COVID-19 pandemic, including prominent customers Ford Motor Co., Burger King and Gap Inc. At the time of IPO, Amplitude reported $72 million in revenue for the first half of 2021, a year over year increase of 56%.[14] After going public, the company has stated that they now have 490 employees across the US, Europe and Asia, and they count 26 of the Fortune 100 as customers.[15]
References[edit]
- ↑ "About Amplitude". Retrieved 14 October 2021.
- ↑ "Amplitude's direct listing is at least the sixth this year as the IPO alternative gains traction in tech". 28 September 2021. Retrieved 14 October 2021.
- ↑ "Fast-Growing Analytics Startup Amplitude, Founded By Forbes 30 Under 30 Alums, Files To Go Public". 14 June 2021. Retrieved 15 October 2021.
- ↑ "Amplitude (W12) is going public". 28 September 2021. Retrieved 15 October 2021.
- ↑ "Best Software Products for 2021". Retrieved 15 October 2021.
- ↑ "Sequoia Capital-backed Amplitude makes its first acquisition with this startup". 10 March 2020. Retrieved 15 October 2021.
- ↑ "ClearBrain uses AI to help advertisers target the right users". 7 February 2018. Retrieved 15 October 2021.
- ↑ "Amplitude acquires Iteratively". Retrieved 15 October 2021.
- ↑ "Iteratively Raises $5.4 Million to Help Teams Rebuild Trust in Their Data". 4 February 2021. Retrieved 15 October 2021.
- ↑ "Analytics Startup Amplitude Valued at $4 Billion in Sequoia-Led Funding Round". 9 June 2021. Retrieved 15 October 2021.
- ↑ "Amplitude CEO's ode to scrutiny ahead of going public". 28 September 2001. Retrieved 15 October 2021.
- ↑ "Why Amplitude Went Public Through a Direct Listing Instead of an IPO". 1 October 2021. Retrieved 15 October 2021.
- ↑ "Amplitude stock surges in software company's public debut as a direct listing; traditional IPOs are 'antiquated,' says CEO". 28 September 2021. Retrieved 15 October 2021.
- ↑ "Analytics Firm Amplitude Reaches $7 Billion Valuation in Debut". 28 September 2021. Retrieved 15 October 2021.
- ↑ "About Us". Retrieved 15 October 2021. Text " Amplitude " ignored (help)
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