EngageSmart Prices Above Range, Raises $378 Million

EngageSmart (ESMT) raised $378 million with an initial public offering that priced above its estimated range for the software-as-a-service company. The EngageSmart IPO will trade Thursday.


The company offered 14.6 million shares at $26 per share. That’s above the estimated range of $23 to $25, giving it a valuation near $4.2 billion.

EngageSmart software is designed to “simplify our customers’ engagement with their clients by driving digital adoption and self-service,” the company said in the EngageSmart IPO filing. The software also provides integrated payment solutions in fields such as health and wellness, financial services, utilities and more.

“Our solutions transform our customers’ digital engagement and empower them to manage, improve, and grow their businesses,” the company said.

EngageSmart IPO: Revenue Climbs 53%

For the second quarter, EngageSmart reported revenue of $51.7 million, up 53% from the year-ago period. It showed a net loss of $211,000 vs. a net loss of $2.9 million for the year-ago quarter.

EngageSmart has 68,000 small and medium-size business customers, as well as 3,000 enterprise customers, according to the EngageSmart IPO filing.

“We believe the end-markets we serve are burdened by legacy systems and processes that result in operational inefficiencies and relatively low digital adoption from consumers,” the company said in its filing.

As the traditional summer break ends, initial public offerings are stampeding ahead, already making 2021 one of the biggest years ever in terms of proceeds raised, led by the tech IPO field. On Wednesday, the Freshworks IPO and Toast IPO added to the frenzy.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.


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