What Amplitude’s choice to direct list says about its products, growth and value?

What Amplitude’s choice to direct list says about its products, growth and value?

mplitude will go public via a straight listing on the Nasdaq under the ticker code “AMPL.” In July, the firm revealed its desire to direct list, and in August, it submitted its S-1 form. In its S-1 filing, the San Francisco-based business counts Battery, Benchmark, IVP, Sequoia, and Jasmine Ventures as primary backers. Each of these investors owns at least 5% of the corporation.

Following up on our explorations of Freshworks and Toast’s recent IPO filings, we are digging into Amplitude’s paperwork this morning. We are intrigued as to why the firm is opting for a direct listing rather than soliciting funds in its initial public offering. 

We also want to know how the firm sees the future, because its product thesis is a road plan for long-term development; how investors value the company will be influenced in part, by whether Wall Street agrees with Amplitude’s vision of where technology is headed.

We will also undertake our regular research into the company’s revenue mix and quality, before speculating on its potential value. Does it seem like a good time? Good. Let us get started. I do not drag you through most S-1 filings since they are full with corporate jargon. After all, we do not need to discuss why a certain vertical SaaS business believes its chosen niche is a wonderful market. You are already aware of the launching concern’s viewpoint. However, I would want to do a little more with Amplitude.

Amplitude provides software that it refers to as “digital optimization.” In reality, this implies that its software aids in the development of better software by other firms.

The way digital goods produced, according to the business, has changed. In its opinion, the days of trusting intuition when it comes to digital design decisions are long gone. 

Instead, Amplitude predicts that digital product firms will rely on data-driven decision-making. In other words, digital product design is moving away from the “Mad Men” period and toward the “Moneyball” age, as it stated in its filing. Data is at the heart of Amplitude’s vision for how firms will build future goods. However, many firms, in its opinion, now collect data on their digital footprint using a mix of different software solutions. Amplitude believes it has a superior way of gathering and learning from digital user data.