After an excellent year for technology companies in 2020, will the long-term effects of the pandemic continue to affect the technology stock boom in 2021?
The 2020 calendar year will long be remembered as an anus horribilis for most, except for a handful of technology companies that have earned the rewards of a global shift to remote work with successful initial public offerings (IPOs).
U.S. companies alone grew a record $ 435 billion in stock sales in 2020 and more than a quarter of that figure comes from IPOs, well above the 2014 mark of $ 279 billion, according to data compiled by Bloomberg. The vast majority of these new listings have been defined as technology companies.
Cloud-based software companies such as Zoom, Snowflake, Asana, Airbnb and Palantir have had particularly good results and continue to see stock prices flourish as distance work and e-commerce continue to be the norm for many in 2021.
The question now is whether this trend will continue throughout the year. There are a lot of companies hoping for an early start in 2021 to take advantage of favorable conditions. But, as in all market debuts, the timing will be everything, with various industry analysts warning more and more about a bubble.
Here are the biggest technology IPOs of the year so far.
DigitalOcean had a disappointing float on the New York Stock Exchange on March 24, its shares falling 9.6% on the first day. The New York cloud company initially set its initial public offering at $ 47, which was at the upper end of the expected range of $ 44 to $ 47. It closed its first day at $ 42.50 a share, valuing the company at $ 4.5 billion.
DigitalOcean promises a simple platform for software developers to quickly launch and host cloud applications on virtual private servers (VPS); It competes with major cloud providers such as AWS, Microsoft Azure, Google Cloud and other platform providers such as Heroku, a Salesforce company and VPS providers such as Linode.
Like many IPO technology companies, DigitalOcean is unprofitable, with a net loss of $ 44 million on revenue of $ 318 million in 2020.
The valuation site Trustpilot was listed on the London Stock Exchange on March 23, where its shares rose up 11% at the start, reaching £ 2.95 per share, above its bid price of £ 2.65 pounds ($ 3.65). This puts the company’s value at £ 1.1 billion.
The Danish company collects independent reviews for online companies and has counted up to 120 million reviews by the end of 2020, from utility providers to yoga studios. Make money by selling subscriptions to companies that want to interact with consumer feedback in their marketing campaigns. Its revenues increased by 25% in 2020, reaching $ 102 million, with a loss of $ 12.2 million.
Food order software maker Olo raised $ 450 million in an initial public offering on March 17. The New York-based SaaS company sold 18 million shares at $ 25 each, up from its pre-IPO range of $ 20 to $ 22, valuing the company at $ 3.55 billion. .
Olo software feeds loyalty programs and allows restaurants to manage orders and menus and currently has a variety of US customers, including Five Guys, California Pizza Kitchen and The Cheesecake Factory.
The Utah-based software company Qualtrics went public on January 28, just two years after its $ 8 billion acquisition by German software giant SAP on the eve of its first initial public offering planned in 2018.
Qualtrics initially priced its initial public offering at $ 30 per share, which was the upper limit of its expected range, before taking 52% on its Nasdaq debut. It closed at $ 45.50 a share, valuing the company at $ 27.3 billion.
Founded by brothers Ryan and Jared Smith with their father and fourth co-founder Stuart Orgill, Qualtrics began its life as an online survey software provider before becoming a platform for large companies such as Disney, BMW and Adidas to collect a variety of «experience» data «. of employees and customers.
Qualtrics has done quite well as part of the SAP family, raising revenue by 30% in the first three quarters of 2020 to $ 550 million. However, it continued to trade at a loss of $ 244 million, with a share-based compensation of $ 218 million distorting this rather dramatic number.
SAP will retain majority ownership of the supplier after the IPO, and private equity firm Silver Lake now owns just over 4% of the shares. Ryan Smith has deviated a little from the day-to-day running of Qualtrics since taking over the majority ownership of the NBA team, the Utah Jazz, last year.
But to list
Other companies rumored to be preparing an IPO in 2021 include Instacart, ZipRecruiter, Coursera, Bumble, Squarespace and Coinbase.