Anaplan Stock Pops 30% Amid a Shell-Shocked Market

Lloyd Doyle
October 15, 2018

At least one tech company escaped the carnage of tech stocks' massive selloff this week.

The company provides cloud-based enterprise software for financial and operations planning.

"While recent trading signs are ominous, Anaplan is riding a longer-term wave that's seen cloud companies hit the public markets with fanfare", CNBC said, citing the IPOs this year of Dropbox, Docusign, Avalara, and Elastic after a lull in tech IPO activity in 2017.

The spike-coming after the company priced the shares late Thursday at the high end of an upwardly revised range-shows that two days of harrowing market declines earlier in the week have had a limited impact on demand for new issues.

"We believe connected planning is the next essential cloud category", the company said in its prospectus. On Thursday, Anaplan raised its IPO price target to $17, from the range of $13 to $15.

In its public filing, Anaplan said it generated $109.4 million of revenue for the first half of 2018, up from $77.8 million in the same period previous year.

Anaplan has some 979 customers including The Coca-Cola Co (NYSE:KO), HP Inc (NYSE:HPQ) and VMware Inc (NYSE:VMW) using something it calls connected planning, to help companies make better and faster decisions.

Anaplan's CEO, Frank Calderoni, had been CFO at Cisco and Red Hat before joining the company past year.

"This elevated pricing range is indicative of an extremely healthy appetite for Anaplan's shares among public equity investors", Rohit Kulkarni, head of research at SharesPost, told Investor's Business Daily. It hasn't yet turned a profit and its net loss widened to $47.2 million this year by the end of June, from last year's $16 million.

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