Analytics firm, Amplitude, is onto the tracks with a direct listing at the finish line. The US-based company offers its customers digital optimization products, which use data-driven insights to fine-tune product design. Its software uses big data techniques to analyze customer trends and track user interactions so clients can receive real-time insights on what works best for their customers and what doesn’t.
Because of the company’s data-heavy service offering being priceless for firms in the present digital age, Amplitude’s valuation has grown four times over since May 2020 and has reached $4b as of June 2021. With clientele such as PayPal (PYPL) and Peloton (PTON), it’s no surprise that the firm has also seen a 57% increase in H1 2021 revenues and a 50% increase in 2020 revenues – priming it well for a listing.
why it matters
Instead of a traditional IPO, Amplitude won’t be creating new shares through a direct listing — it’ll basically be a buy-in to the company’s existing shares that the public can participate in. Direct listings were only recently approved by the SEC in December 2020, so how it impacts Amplitude’s opening stock price will be of key importance.