We all know a thing or two about unwanted emails and the troubles that can come with unsubscribing from distribution lists. But one newly-public email marketing company thinks it has the solution.
According to SendGrid CEO Sameer Dholakia the trick to staying afloat in the competitive email marketing landscape is sending billions of emails every day, but to people who expect it.
The Colorado-based company went public at the New York Stock Exchange Wednesday, with its stock opening nearly 16% from its IPO price. SendGrid, which trades under the ticker SEND, boasts a roster of clients that include Airbnb, Spotify, OpenTable, and Uber.
Dholakia says that there’s a “massive” opportunity in the email marketing industry, which according to some estimates could be $11 billion in size. Data company Statista reported that 44 percent of Americans and Canadians check their email 1 to 3 times a day. The firm says that by 2019, spending on email marketing in the U.S. will increase to over $3 billion. That's a 12 percent increase from 2016.
“Email remains the primary channel of communication for billions of people around the world,” he said.
SendGrid reported revenues of more than $80 million in the first nine months of the year, up over 40 percent from a year ago. But it still posted a loss of about $4.7 million for the period. The company priced shares at $16 apiece, higher than its original target, and even raised the size of its offering, bringing in $131 million in the IPO.
Dholakia, a Harvard Business School grad with more than 20 years in the industry, shared his plans for the capital raise. He's looking to invest in SendGrid's core marketing solutions, international expansion, and its partnership channels.