New Relic (NEWR) IPO Opens Up 31%

Today's IPO for New Relic, Inc. (NYSE: NEWR) opened for trading at $30.16 after pricing 5,000,000 shares of its common stock at a price to the public of $23 per share, above the expected $20-$22 range which was recently raised from $18-$20.

New Relic has granted the underwriters a 30-day option to purchase up to 750,000 additional shares of common stock from New Relic at the initial public offering price.

Triton Research rates the New Relic IPO 7.31, versus their average IPO score of 6.58.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Allen & Company LLC and UBS Securities LLC are acting as joint book-running managers for the offering. JMP Securities LLC and Raymond James & Associates, Inc. are acting as co-managers for the offering.

New Relic develops and sells a software service on a subscription basis to software developers and other IT professionals at small and medium businesses that tracks and identifies performance issues and bugs in software. As of September 30, 2014, the company had over 250,000 users.

For the fiscal years ended March 31, 2012, 2013, and 2014, revenue was $11.7 million, $29.7 million, and $63.2 million, respectively, representing year-over-year growth of 154% from the fiscal year ended March 31, 2012 to the fiscal year ended March 31, 2013, and 113% from the fiscal year ended March 31, 2013 to the fiscal year ended March 31, 2014. For the six months ended September 30, 2013 and 2014, revenue was $26.1 million and $48.0 million, respectively, representing year-over-year growth of 83%. The company had net losses of $7.5 million, $22.5 million, and $40.2 million for fiscal years ended March 31, 2012, 2013, and 2014, respectively, and $18.6 million and $19.4 million for the six months ended September 30, 2013 and 2014, respectively.

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