The time seems to be prime for tech companies to go public. In recent IPO news, Medallia is doing exactly that. Grabbing the opportunity that the initial public offering (IPO) wave has presented, the digitally focused SaaS (Software as a Service) is ready to go public on Friday.
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Over 14 million shares of the company will be available to be traded at $16 to $18 per share on NYSE. And of course, investors will be watching MDAL stock price closely. Bank of America Merrill Lynch, Citigroup, and Wells Fargo Securities will oversee the IPO.
Is MDAL Stock Price Set To Soar?
The company was found by a pair of management consultants in 2001. Medallia specializes in real-time business intelligence. It is well known for its Medallia Experience Cloud. The product is an experienced management software platform. A major portion (79%) of the company’s revenue is attributed to its product subscriptions. The rest is attributed to consultancy services it provides. Some of its big clients include companies like Delta Air Lines, AirBnB, H&R Block, Hilton Worldwide Holdings, etc.
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The company recently reported a loss of $82.2 million for the fiscal year-end in January. Meanwhile, revenue was reported to be $313.6 million. The loss seems to have increased from its 2018 $70.4 million, while the revenue saw a positive rise of $52.4 million. This can be accredited to organic growth and acquisitions of smaller, complementary companies.
The stats may imply the company is spending heavier, even over its revenue. Medallia is focused on long-term plans rather than aiming at short-term profitability. The company is making plans for international investments in order to increase its revenue from outside.
Key Clients: A Catalyst For Medallia Stock Price?
Medallia can serve a broad category of clients as is indicated by its client list. The company stands out for its ability to sell the same products in different versions. It also tactfully draws data and opinions of customers from the comments and reviews they leave in order to better serve them and strengthen the business. The company does face tough competition from SVMK. They also went public recently. Qualtrics could also pose a risk. It was acquired by SAP (business software conglomerate) last year.
Medallia has a good record when it comes to retaining and maintaining clients. It’s essentially very focused on its business which could prove to be highly profitable. Further, the products offered by companies could be up-sold and cross-sold by their clients easily.
