{"id":9119,"date":"2019-07-18T19:10:50","date_gmt":"2019-07-18T23:10:50","guid":{"rendered":"http:\/\/www.ipoboutique.com\/blog\/?p=9119"},"modified":"2019-07-20T19:34:08","modified_gmt":"2019-07-20T23:34:08","slug":"ipo-boutique-comments-on-medallia-inc-mdla","status":"publish","type":"post","link":"https:\/\/www.ipoboutique.com\/blog\/ipo-boutique-comments-on-medallia-inc-mdla\/","title":{"rendered":"IPO Boutique comments on Medallia, Inc. (MDLA)"},"content":{"rendered":"

<\/p>\n

Company: Medallia, Inc.<\/strong>
\nSymbol: MDLA
\nDescription: They created a new category of enterprise software, experience management, and they are the market leader.
\nShares: 14.5 million
\nPrice Range: $16.00-$18.00
\nMarket Cap: $1.95bn – $2.2bn
\nTrade Date: Friday, 7\/19
\nUnderwriter(s): BofA Merrill Lynch, Citigroup, Wells Fargo Securities Credit Suisse
\nCo-Manager(s): Oppenheimer, William Blair, Needham, Craig Hallum Capital Group, Roth Capital
\nTerms Added: 7-8-19<\/p>\n

\"\"<\/a><\/p>\n

LINK TO PROSPECTUS<\/strong><\/a><\/p>\n

7\/15\/19, 9:35am ET — Medallia, Inc. (MDLA) —\u00a0<\/strong>Channel checks just completed, are currently revealing according to underwriter guidance that the deal is\u00a0multiple-times oversubscribed with the underwriter additionally indicating that there is “currently” no price sensitivity.\u00a0<\/strong>The underwriter states that the books are scheduled to\u00a0close Wednesday at 4pm\u00a0<\/strong>in anticipation for a Friday debut. It would not at all “surprise us” to see this offering price at the high-end or above the existing range or even see a possible amended filing increasing the range. There is a very strong appetite for software IPOs<\/strong> like Medallia and recent deals in this sector have outperformed. This company boasts very large and well-known customers:\u00a0Delta Air Lines, Target, Exxon Mobil, Hilton and Bank of America (to name a few).<\/span><\/p>\n

Revenue increased from $201.8m to $246.8 million for the years ended January 31, 2018 and 2019 <\/span>representing 22% growth<\/b>. For the three months ending April 30, 2019, the company had $71.7m in revenues (+28.9% vs. 2018 period). Net loss in the three months ended April 30, 2019 was just $2.6m versus $27.5m for the three months ended April 30, 2018. <\/span>Strong positives about the company include high recurring revenues (+90%) and high net retention rate (+119%).<\/b> A<\/span> strike against the company <\/b>is the SaaS revenue growth slowed to 22% last fiscal year from 33% in the prior year sparking a change in the CEO in August 2018. The company believes it can re-accelerate to the typical 25%-30% growth range with the new management team. Medallia <\/span>comps to Qualtrics <\/b>who was acquired a few days prior to its scheduled IPO debut by SAP for $8bn.<\/span><\/p>\n

We are electing to raise the rating on this IPO from a ‘3’ to a ‘4’.\u00a0<\/strong>Please monitor for additional potential information.\u00a0Rating = 4.\u00a0<\/strong><\/p>\n

\n

7\/16\/19, 10:25am ET — Medallia, Inc. (MDLA) —\u00a0<\/strong>Channel checks just completed, are currently revealing according to underwriter guidance that the deal is now “double-digits times oversubscribed” (north of 10x)<\/strong>. The underwriters are currently guiding $1-$2 above the prevailing $16-$18 range.\u00a0<\/strong>This IPO is highly-likely the “deal of the week”.\u00a0Rating = 4.\u00a0<\/strong><\/p>\n

\n

7\/17\/19, 9:50am ET — Medallia, Inc. (MDLA) —\u00a0<\/strong>Channel checks just completed, are currently revealing according to underwriter guidance that the deal is now many multiple-<\/strong>times oversubscribed<\/strong>. The underwriters are now guiding to a “$20 or higher” pricing (prevailing range is\u00a0<\/strong>$16-$18).<\/strong>\u00a0Rating = 4.\u00a0<\/strong><\/p>\n

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7\/18\/19, 9:10am ET — Medallia, Inc. (MDLA) —\u00a0<\/strong>Channel checks just completed, are currently revealing according to underwriter guidance that the deal remains\u00a0many multiple-<\/strong>times oversubscribed<\/strong>. The underwriters continue to guide to \u00a0a “$20 or higher” pricing (prevailing range is\u00a0<\/strong>$16-$18).<\/strong>\u00a0Rating = 4.\u00a0<\/strong><\/p>\n

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Medallia, Inc. (MDLA) <\/strong>has priced an upsized 15.5mm shares at an above range price of $21.00. Debut date…7\/19<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"zakra_general_container_width":0,"zakra_general_content_width":0,"zakra_general_sidebar_width":0,"zakra_sticky_header":"customizer","zakra_header_main_area":true,"zakra_site_logo_width":0,"zakra_header_top_enabled":"customizer","zakra_header_top_style":"customizer","zakra_primary_menu_item_style":"customizer","zakra_page_header_text_color":"","zakra_page_header_layout":"customizer","zakra_page_title_bg":"","zakra_footer_widgets_bg_image":0,"zakra_page_title_bg_repeat":"customizer","zakra_page_title_bg_position":"customizer","zakra_page_title_bg_size":"customizer","zakra_page_title_bg_attachment":"customizer","zakra_breadcrumbs_enabled":"customizer","zakra_breadcrumbs_text_color":"","zakra_breadcrumbs_separator_color":"","zakra_breadcrumbs_link_color":"","zakra_breadcrumbs_link_hover_color":"","zakra_page_title_bg_image":0,"zakra_footer_widgets_enabled":"customizer","zakra_footer_column_layout_1_style":"customizer","zakra_footer_widgets_bg":"","zakra_footer_widgets_bg_repeat":"customizer","zakra_footer_widgets_bg_position":"customizer","zakra_footer_widgets_bg_size":"customizer","zakra_footer_widgets_bg_attachment":"customizer","zakra_footer_bar_enabled":"customizer","zakra_footer_bar_style":"customizer","footnotes":""},"categories":[24,1536],"tags":[1861],"class_list":["post-9119","post","type-post","status-publish","format-standard","hentry","category-ipo","category-subscriber-content","tag-mdla"],"_links":{"self":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/9119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/comments?post=9119"}],"version-history":[{"count":7,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/9119\/revisions"}],"predecessor-version":[{"id":9267,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/9119\/revisions\/9267"}],"wp:attachment":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/media?parent=9119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/categories?post=9119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/tags?post=9119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}