Workday's (NYSE:WDAY) strong debut on Friday marked the 16th on-demand enterprise software IPO this year. The group has performed exceptionally well, posting an average first day gain of 34% (vs. 14% average for all IPOs YTD) and an average total return of 47% (vs. 20%), a reflection of investors' ongoing interest in growth and high revenue visibility.
E2open (NASDAQ:EOPN), the only on-demand enterprise software IPO that has traded down on its first day, saw redemption this week after reporting slightly better-than-expected results on Monday after the close. Since its earnings announcement, E2open has jumped 29%, bringing it back above its offer price and at a post-IPO high.
Workday lived up to its hype on Friday and closed its first day of trading up 75%, solidifying its spot as the fifth largest first day gain this year, behind big data software provider Splunk (NASDAQ:SPLK), mobile ad platform Millennial Media (NYSE:MM), organic food maker Annie's (NYSE:BNNY) and quick-turn protoype manufacturer Proto Labs (NYSE:PRLB).
Workday now commands the highest valuation of this year's on-demand IPOs with a fully diluted market value of $9.4 billion (44x trailing 12 month sales). IT automation software provider ServiceNow (NYSE:NOW) follows with a market value of $5.4 billion (29x trailnig sales). Guidewire (NYSE:GWRE), ExactTarget, (NYSE:ET) Demandware (NYSE:DWRE) and Bazaarvoice (NASDAQ:BV) each have market values in excess of $1 billion.
|Company (Ticker)||IPO Date||Market Value||EV/LTM Sales||First Day Pop||Return from IPO|
|Workday (WDAY)||10/11/12||$9.4 billion||44x||75%||75%|
|ServiceNow (NOW)||6/28/12||$5.4 billion||29x||37%||85%|
|Guidewire (GWRE)||1/24/12||$1.8 billion||7x||32%||132%|
|ExactTarget (ET)||3/21/12||$1.7 billion||6x||32%||21%|
|Demandware (DWRE)||3/14/12||$1.2 billion||16x||47%||109%|
|Bazaarvoice (BV)||2/23/12||$1.0 billion||8x||38%||25%|