Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. HOMEPAGE

UserTesting falls in market debut after raising $140 million in IPO

Andy MacMillan
Andy MacMillan, UserTesting CEO UserTesting

  • UserTesting, which provides a customer feedback for enterprises, stumbled in its NYSE trading debut.
  • Shares dropped as low as $13.31, below the initial public offering price of $14 per share.
  • Shortly after trading began, CEO Andy MacMillan told Insider he was happy how the day was going.

Shares of UserTesting, which provides a customer feedback platform for enterprises, fell below its IPO price in a trading debut on the New York Stock Exchange Wednesday. Shortly after the start of trading, the stock dropped as low as $13.31.

Shares of UserTesting, which is trading under USER, closed at $14.01, valuing the company at approximately $1.98 billion.

The company raised $140 million by selling 10 million shares at $14, below its target price range of $15 to $17. At the midpoint of the proposed range, UserTesting would have been worth at least $2.7 billion, according to Renaissance Capital, a research firm that tracks IPOs.

"The IPO was our last chance to really pick those institutional investors that we wanted in the business. And so, we wanted to pick the right price and bring in the right investors," UserTesting CEO Andy MacMillan told Insider shortly after the start of trading. 

"I'm really happy with where we landed on. I'm happy with how the day is going, and I'm really happy with the investors we got in the business," he added.

Founded by Darrell Benatar and Dave Garr in 2007, UserTesting helps companies get feedback on their websites by offering to pay people to complete certain tasks while recording on-screen actions. MacMillan, a former COO at Salesforce and executive at Oracle, joined the company as CEO in May 2018.

Insider previously reported UserTesting's confidential IPO filing in July.

Headquartered in San Francisco, the company has more than 2,000 subscription customers, including Samsung, Wayfair, Adobe, and Ford. It had raised a total of $202.5 million in venture funding, according to PitchBook, from investors including Insight Partners, Accel, OpenView Venture Partners, and Greenspring Associates.

Got a tip? Contact this reporter at ccheng@businessinsider.com or via Twitter DM at @MMCandyCheng.

IPO Tech

Jump to

  1. Main content
  2. Search
  3. Account