Medallia is the Latest Cloud IPO to Soar

It was this past Friday that Medallia made its debut on the stock market and shares saw a gain of over 75%.
The San Francisco-based cloud software company, which sells software tools to help companies monitor customer satisfaction, had its shares initially priced at $21.

Share prices on the stock’s debut sailed to as high as $39.56 as Wall Street welcomed another cloud company. Medallia now joins the ranks of PagerDuty, Zoom, and Crowdstrike, who all had strong opening days this year.

It was in a SEC filing on July 8 that Medallia said that it expected shares to price between $16 and $18.
Share prices closed at $37.05, giving the company a market valuation of more than $4.5 billion.

Medallia CEO Leslie Stretch said on CNBC’s “Squawk Box,” that the company is an alternative to traditional customer survey vendors. Stretch revealed that the company has signed agreements with Salesforce and Adobe.

“It’s great to go to market with leaders like that,” Stretch said on the stock’s first day of trading. “Both Adobe and Salesforce completely understand that the customer is at the center of every digital transformation, and we’re the center of that.”

In a recent regulatory filing, Medallia saw revenue in the fiscal year that ended in January soar 20% to hit $313.6 million. The company’s net loss grew to $82.2 million from $70.36 million.

Disclaimer: We have no position in Medallia Inc. (NYSE: MDLA) and have not been compensated for this article.