UserTesting, which provides a video-first customer feedback platform for enterprises, raised $140 million by offering 10 million shares (100% primary) at $14, below the range of $15 to $17. The company originally planned to offer 14.2 million shares (71% primary).
UserTesting states that it has pioneered a video-first, enterprise-grade SaaS platform that enables organizations to see and hear the experiences of real people as they engage with products, designs, apps, processes, concepts, or brands. Its go-to-market model is based on a direct sales force that is optimized for the size and geography of a customer's organization. It has also started investing in creating channel partnerships and relationships with resellers, distributors, and strategic partners to broaden its reach. As of September 30, 2021, UserTesting had more than 2,100 customers, including 279 with at least $100,000 of ARR and nine with at least $1 million of ARR, and a 119% net dollar-based retention rate.
UserTesting plans to list on the NYSE under the symbol USER. Morgan Stanley, J.P. Morgan, Piper Sandler, Truist Securities, William Blair, Canaccord Genuity, Needham & Co., Oppenheimer & Co., Raymond James, and Baird acted as joint bookrunners on the deal.
