Qualtrics, a 16-year old company that sells cloud-based software for running customer and employee surveys, is looking to raise up to $200 million in an IPO, according to this report from Forbes. Qualtrics generated $290 million in revenue and $2.7 million in profit last year, suggesting that it is well-positioned following the successful market debuts this year of subscription software companies such as Eventbrite, SmartSheet, and Elastic.
Investors love subscription software companies because subscription-based revenue is typically steady and predictable. That said, subscription software companies have hit some turbulence since early September, with Salesforce, Workday, Box and others hit by sharp share price declines. Even so, the sell-off doesn’t appear to be affecting private subscription software companies’ plans to test the waters of the public markets.