AppDynamics has revealed its filing for a U.S. IPO. The IT company, which helps businesses like Salesforce and IBM with applications management, is targeting a $100 million offering.
Despite a competitive landscape, which includes New Relic and Dynatrace, AppDynamics has shown strong revenue growth over the past year. For the nine months ending in October, revenue came in at $158.4 million, compared to $102.8 million in the same period during the year prior, driven by strong growth in subscriptions.
Losses widened slightly, with the company losing $95.1 million through October versus $92.4 million in the same period the year before. This means that last year, the losses were almost as high as AppDynamics’ revenue.
As the company warned in its risk factors, the losses are expected to continue. “We expect our operating expenses to increase over the next several years as we continue to expend substantial financial resources on, among other things: research and development, including the development of new applications and application enhancements; sales and marketing, including increasing our product and brand awareness; customer support and professional services; upgrades to our technology infrastructure, such as improvements to our SaaS architecture; and hiring of additional employees.“
AppDynamics has raised more than $300 million in funding over the past eight years and its largest shareholders are Greylock Partners and Lightspeed Venture Partners, which each own 20.8 percent of the company. AppDynamics’ last known private market valuation stood at $1.9 billion.
The company has been planning an IPO for several years now. AppDynamics’ management had always been vocal about their long-term plans, but there was a change in leadership last year and several market-related delays.
Revealing the filing right now suggests that the company is hoping to finally go public in late January or early February.
The company will be listing on the NASDAQ under the ticker “APPD.” Morgan Stanley and Goldman Sachs are co-managing the offering.