Extensity More Than Triples in Its Trading Debut

Updated from 1:04 p.m. EST

The stock market debut of Extensity (EXTN) looks more like the statistics of a vintage Michael Jordan game, as its share price more than tripled Thursday, even though the company doubled its initial offering price earlier this week.

Extensity's shares jumped 53 3/4, or 270%, to 73 3/4 by early afternoon following the lead of Neoforma's (NEOF) soaring initial public offering on Monday. Extensity priced its IPO at $20, up from an initial range of $8-$10. (Shares closed up 51, or 255%, at 71 1/4.)

Together with lead underwriter Deutsche Banc Alex Brown, the company raised $80 million on the sale of 4 million shares.

Licensing revenues from software surged 422% in 1999 over the prior year. Nearly half of Extensity's revenues come from services and maintenance, which jumped 649% from 1998 to 1999.

From the beginning of last year to present Extensity has increased its sales teams to 42 from 5, according to Spinner.

Extensity also generates about a third of its sales from maintenance and other services.

Extensity, based in Emeryville, Calif., uses its Internet-based software to help manage employee spending, travel and expense reporting, office supplies procurement, and billable time management. The software can be integrated with software commonly used in the workplace.

The market for workforce management applications will grow to $4 billion, while the Internet procurement applications market will be as big as $5.3 billion by 2003, according to International Data Corp.

"We're pleased with the results and with the investors who believe in our business," Extensity chief executive Bob Spinner said in an interview. The company will be focused on meeting their sales numbers, building sales channels and continuing to satisfy their company base, Spinner added.

Extensity has more than 70 customers across a broad range of businesses including financial services, consumer products, manufacturing, telecommunications, utilities, entertainment, and technology companies. The largest customers by contract value include AT Kearney, Cisco Systems (CSCO), Gelco Information Network, Sara Lee (SLE) and TransCanada PipeLines (TRP). Notably, the Bill and Melinda Gates Foundation is also a customer.

The company is also backed by a handful of venture capital firms like Berkeley International Capital, Hummer Winbald Ventures and Kleiner, Perkins, Caufield & Byers, the firm that was behind Amazon.com (AMZN) and America Online (AOL).

Extensity's registration filing with the Securities and Exchange Commision raises a question about two of four of its applications, though. According to the S-1/A filing, the company has "not completed an implementation of our Extensity Purchase Reqs of Extensity Timesheets applications for any customers."

These programs automate requisitioning of goods and services and billable hours. The other two programs are for travel expenses and expense reports.