Anaplan, Inc IPO

Investment Analysis Clubs Saul’s Investing Discussions
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Anaplan, Inc. recently filed an S-1 Registration statement with the SEC. They’re a SAAS company that seems to fit the bill for this discussion board. ~1000 customers with some impressive logos. Below is an excerpt from the S-1. Sounds interesting. Love to hear what you folks think.

We have grown rapidly in recent periods. For fiscal 2016, 2017, and 2018, and the six months ended July 31, 2017 and 2018, our revenue was $71.5 million, $120.5 million, $168.3 million, $77.8 million, and $109.4 million, respectively, and our subscription revenue for fiscal 2016, 2017, and 2018 was $50.8 million, $91.4 million, and $143.5 million, representing a year-over-year subscription revenue growth rate of 80% and 57%, respectively. We have a strong and growing international presence with approximately 41% and 43% of our revenue generated from outside of the United States in fiscal 2018 and the six months ended July 31, 2018, respectively. No individual customer represented more than 5% of our revenue in fiscal 2018 or the six months ended July 31, 2018. For fiscal 2016, 2017, and 2018, and the six months ended July 31, 2017 and 2018, our net loss was $54.2 million, $40.2 million, $47.6 million, $16.0 million, and $47.2 million, respectively.

Regards,
Mike

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What exactly do they do?

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Mike,

Thanks for bringing a new company to the board. I always enjoy new ideas. The power of community helps flesh out my own investment opportunities.

From what you wrote above, I can’t really tell too much to give you feedback on the company. Could you help frame the larger picture from the S-1?

They are SaaS for what?
What is their TAM?
Is the TAM growing?

Who are their customers?
How quickly are they acquiring customers?
Do they have competition?

Are they disrupting, creating, or participating in their target market?

What is the IPO market cap?
When would the IPO date be?

Sorry for all the questions, but I think it would help paint the broader investment opportunity.
Just a Fool

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Sorry for the lack of info. Here is a link to their S-1 (https://www.sec.gov/Archives/edgar/data/1540755/000119312518…). Below are some excerpts from their S-1. Hopefully this answers some of your questions.

SAAS- Anaplan is pioneering the category of Connected Planning, which allows organizations to transform their businesses by making better and faster decisions. We believe Connected Planning is the next essential cloud category. It fundamentally transforms planning by connecting all of the people, data, and plans needed to accelerate business value and enable real-time planning and decision-making in rapidly changing business environments. Connected Planning accelerates business value by transforming the way organizations make decisions and placing the power of planning in the hands of every individual at every level within and between organizations.

Customers- Communications & Media (Sky,Dish,TELUS,Zillow,Pandora; Financial Services & Insurance(Barclaycard,Unum,RSA,Legal & General,Satsuma Loans);Technology(Adobe,McAfee,Box,Tableau,Seagate,Autodesk);Consumer Goods & Retail(Del Monte,Bacardi, Sonos,Carters,Circle K,Zalora);Manufacturing(Tata Steel,Dyson,Tarmac,Excelitas Technologies);
Travel & Hospitality(United Airlines,British Airways,Thomas Cook,Accor Hotels,Booking.com)

Competition- The market for Connected Planning solutions is new and characterized by rapid technology innovation. In many cases, our primary competition is manual, often spreadsheet-driven, processes and custom-built approaches. In addition, we compete with large software companies, including legacy vendors such as Oracle, SAP, and IBM, that offer on-premises applications sold on a perpetual license and maintenance basis, as well as cloud software versions adapted from on-premises applications. We also compete with emerging vendors of applications focused on a specific department or use case, such as sales performance management and financial planning.

Customer Growth- The number of customers with greater than $250,000 of annual recurring revenue was 59, 113, 181, and 213 as of the end of fiscal 2016, 2017, and 2018, and July 31, 2018, respectively.

IPO Date-Their S-1 was filed 9/14/18. I’ll assume they’ll be effective in October.

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I had never heard of this company, so I went spelunking on their website yesterday. Activision Blizzard is also a customer, and I’m an ATVI shareholder since 2014, so I read their customer use case write-up. Supposedly, Anaplan lets ATVI make their retail-facing decisions faster by consolidating a bunch of data (preusmably ERP, retail and sales estimate metrics, etc.) into specific panels (“single pane of glass” is probably an overstatement, but would otherwise be how I’d decribe it) to let them make decisions more quickly.

To me, this is the kind of company that can actually benefit companies that are stuck in older ways of running their business, but the “how” of why this stuff helps is the hurdle. Companies and businesses have to SEE the value-add that it is. I think if I had a better handle on how Anaplan actually attracts and converts a customer it would complete the puzzle for me, but I don’t.

They do offer free demos, so I imagine they let you self-drive and then maybe send a consultant in (by phone even) to help them “see the vision”.

Ran out of time to dig further, but that’s the part I’m interested in – HOW are they going to bring on the next 500, 5000, 50k customers, most of whom probably think they’re already looking at the right data and making the right decisions.

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