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Highlights
- UserTesting, Inc. is offering 10 million shares of its common stock to investors
- The firm is expected to start trading November 17
- It plans to get listed on the New York Stock Exchange (NYSE)
The provider of video-first SaaS platform for usability testing, UserTesting, Inc., announced the pricing of its initial public offering (IPO) on Tuesday, November 16. Among a series of IPOs this week, UserTesting was closely watched by investors, indicating belief that the enterprise-grade SaaS platform has growth potential.
The firm provides its platform to organizations for executing customer-centric visuals by tracking real people's experiences when they engage with products, apps, designs, or brands. In other words, through its platforms, an organization gets instant access to users across a myriad of demographics.
Meanwhile, the company was established in 2007 and is based in San Francisco, California. However, the company's founders, Dave Garr and Darrell Benatar, understood the need for fast human insight in 1999, when the pair started working together.
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Share offerings and pricing
The California-based software company is offering 10 million shares of its common stock to investors. In addition, it has enabled an option for 30 days for the underwriters to buy an additional 1.5 million shares of its common stock at the IPO price, less underwriting discounts, and commissions.
The initial public offering price will be US$14 per share, the company announced on Tuesday. It is expected that the firm will make its debut in the US market on November 17. It planned to get listed on the New York Stock Exchange (NYSE) and trade under the ticker "USER".
Notably, the offering is expected to close, subject to usual conditions, on November 19, and all the shares are being offered and sold by UserTesting.
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Company details
The company had more than 2,100 customers as of September 30, which includes over 275 with around US$100,000 annual recurring revenue (ARR) and nearly 10 with about US$1 million ARR. Meanwhile, among its total customers, the firm claims to provide its services to around half of the Forbes 100 most valuable brands across the globe.
It has an employee strength of around 700, with 4 offices in San Francisco, Atlanta, Edinburgh, and Singapore. In 2020, there were 1.4 million tests taken, with about 20 million minutes of video captured.
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Company financials
For the nine months ended September 30, the company's total revenue was US$104.91 million, as compared to US$72.80 million in the year-ago period. Its net loss came in at US$33.80 million, against a loss of US$26.13 million for the nine months ended September 30, 2020.
Bottom line:
The lead book-running managers and underwriters' representatives for the proposed IPO will be Morgan Stanley and J.P. Morgan. The book-running managers will be William Blair, Piper Sandler, and Truist Securities. In addition, Needham & Company, Academy Securities, Oppenheimer & Co., and others will act as the offering's co-managers.
