Adaptive Insights has filed its S1 Form as the first step towards an IPO. It issued a brief statement announcing the initial private offering. It will list on the New York Stock Exchange under “ADIN”. No prices were stated in the initial form submitted, however the maximum limit was set at $100 million.
Adaptive Insights has grown consistently over the last three years in terms of its revenues. Its fiscal year runs to January 31st and revenues for the last three years were 61.7 million, $81.8 million and $106.5 million. This is a fairly health revenue growth.
However, the company still has net losses, although these have decreased over a similar period from $59.1 million to $44.7 million and $42.7 million. Most of the money has gone into its expansion, with Sales and Marketing taking up a large proportion of costs. It recently opened its first office in France, looking to take advantage of the appetite for cloud solutions in that country.
Founded in 2003 Adaptive Insights offers an integrated CPM and business intelligence solution. Most of their customer base also uses NetSuite through a historic partnership. However, the software is able to work with other ERP solutions including Plex, Sage Intacct and Workday. With Sage Intacct also looking to expand internationally in the near future and Workday performing strongly across Europe there are reasons for optimism
What does this mean
What is clear is that this may just be a tentative attempt to see what the market appetite is for the IPO. The interest level may depend on if and how quickly Adaptive Insights go ahead with the process. If they don’t they will probably need to raise funds instead.
A copy of prospectus is available from Morgan Stanley & Co. LLC. There are further details contained in the S1 Form. There are certain risks peculiar to Adaptive Insights that might make investors wary. These include the risk of non-renewal from NetSuite customers, who may switch to the NetSuite FP&A solution. To date though during a recent conversation with Rob Hull, Founder and Chairman, he revealed that renewals have been strong.
Will NYSE:ADIN appear during 2018?