Notes from the New Relic S-1 IPO Filing

Last week New Relic, an application performance company, published their S-1 IPO filing to go public. From a technical perspective, New Relic provides software developers insight into how every part of their web and mobile application performs, which is incredibly valuable. New Relic is part installed software (to gather the data) and part cloud-based software (to review and analyze the data).

Here are a few notes from the New Relic S-1 IPO filing:

• Mission is to empower organizations to build the best modern software possible and to improve their business intelligence using the data flowing through and about that software (pg. 1)
• Revenues for fiscal years ending in March (pg. 2):
  2012 – $11.7 million
  2013 – $29.7 million
  2014 – $63.2 million
• Losses for fiscal years ending in March (pg. 2):
  2012 – $7.5 million
  2013 – $22.5 million
  2014 – $40.2 million
• Gartner says the IT Operations Management market is $19.1 billion in 2013 and growing to $27.9 billion in 2017 (pg. 5)
• Business started in September 2007 (pg. 6)
• Accumulated deficit of $100.8 million (pg. 11)
• Employee headcount grown from 315 employees as of September 30, 2013 to 534 as of September 30, 2014 (pg. 12)
• In the fiscal year ended March 31, 2014, sales and marketing expenses represented 92% of revenue (pg. 14)
• 83% gross margin in 2014 (pg. 46)
• Product line (pg. 67):
  New Relic APM: Application performance management
  New Relic Mobile: Mobile application performance management
  New Relic Servers: Server monitoring for cloud and data centers
  New Relic Browser: End-user experience monitoring and performance monitoring
  New Relic Synthetics: Software testing through simulated usage
  New Relic Platform: Platform that extends our functionality into other applications
  New Relic Insights: Real-time big data analytics for business managers
• As of September 30, 2014, had over 250,000 users and had 10,590 paid business accounts worldwide (pg. 75)
• Three core values (pg. 77):
  Customer Trust and Success
  Growth—“Excelsior!”
  Team—“Be Bold, You’re Not Alone”
• Ownership percentages (pg. 100):
  CEO/Founder – 27.3% (this is an impressive amount for a company at this scale)
  Benchmark Capital – 22%
  Trinity Ventures – 13.6%
  Insight Venture Partners – 5.6%
  Tenaya Capital – 4.9%

New Relic is one of the leading infrastructure apps for the cloud-generation of companies. With its scale and growth rate, the public markets will be very receptive to the IPO.

What else? What are some other thoughts on theNew Relic S-1 IPO filing?