Social media management startup Sprout Social’s stock closed 2 percent lower than its IPO price on its first day of trading.
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Sprout Social’s stock closed at $16.60 on Friday after pricing at $17. It opened at $18.05 per share on Friday, or 6 percent higher than its IPO price, before declining throughout the day. The company set its price range of between $16 and $18, and settled on a price of $17 late Thursday night.
The Chicago-based company raised $150 million selling 8.8 million shares before trading began on the markets on Friday.
As a private company, Sprout Social raised $111.5 million in total funding, according to Crunchbase.
Sprout Social makes it easier for organizations to handle workflows, data and messaging for all of their social media channels. It derives nearly all of its revenue (99 percent in 2018 and 99 percent for the first three quarters of 2019) from software subscriptions.
The company’s revenue for the first three quarters of 2019 was about $74.6 million, up from $56.6 million during the same period in 2018. Its losses are also growing, from a net loss of $17 million in the first three quarters of 2018 to a net loss of $20.9 million during the same time this year.
You can read more about Sprout Social’s financials here.
Illustration Credit: Li-Anne Dias