) strong debut on Friday marked the 16th on-demand
enterprise software IPO this year. The group has performed
exceptionally well, posting an average first day gain of 34% (vs.
14% average for all IPOs YTD) and an average total return of 47%
(vs. 20%), a reflection of investors' ongoing interest in growth
and high revenue visibility.
), the only on-demand enterprise software IPO that has traded
down on its first day, saw redemption this week after reporting
slightly better-than-expected results on Monday after the close.
Since its earnings announcement, E2open has jumped 29%, bringing
it back above its offer price and at a post-IPO high.
Workday lived up to its hype on Friday and closed its first day
of trading up 75%, solidifying its spot as the fifth largest
first day gain this year, behind big data software provider
Splunk (SPLK; +109% first day pop), mobile ad platform Millennial
Media (MM; +92%), organic food maker Annie's (BNNY; +89%) and
quick-turn protoype manufacturer Proto Labs (PRLB; +81%).
Workday now commands the highest valuation of this year's
on-demand IPOs with a fully diluted market value of $9.4 billion
(44x trailing 12 month sales). IT automation software
provider ServiceNow (
) follows with a market value of $5.4 billion (29x trailnig
sales). Guidewire (
), ExactTarget, (
)Demandware (DWRE) and Bazaarvoice (BV) each have market values
in excess of $1 billion.
Largest 2012 On-demand Enterprise Software IPOs by
First Day Pop
Return from IPO