After raising $570 million in its initial public offering, application monitoring firm Dynatrace LLC saw its shares pop 49% on the New York Stock Exchange today as investors lapped up another offering in what is already a record year for tech IPOs.

Offering 35.6 million shares at $16 per share, a figure already up on an initial price range of $11 to $13 per share, Dynatrace stock rose as much as 65% during the day before closing at $23.85, giving the company a market capitalization of $6.71 billion.

Founded in 1993, Boston-based Dynatrace has a long history in offering application performance management software. Over that time, the company has also changed hands several times. Having started as a standalone business, the company became part of Compuware before being separated under the ownership of private equity firm Thoma Bravo in 2014. Post-IPO, Thoma Bravo retains 71% of the company’s stock.

The age and history of the company was not its only unique feature heading into its IPO. So were its finances. When Dynatrace filed for its IPO, it did so with more than 2,300 customers and revenue of $431 million, up 8% year-over-year. But after reporting a $9 million profit in 2018, higher spending produced a $116 million loss for the year ended March 2019.

A good part of that loss was driven by Dynatrace spending big on sales and marketing in an effort to move customers from its old, license-based application monitoring solution to the cloud-based platform. Looking past the cost of acquisition, the push is paying off. Dynatrace raised subscription revenues by 36% last year, to $349.8 million, with its cloud platform now accounting for 81% of total sales, up from 57% in 2017.

Despite the losses, it was Dynatrace’s growth in subscription revenues that got investors excited.

Dynatrace follows in the path of other successful IPOs this year, which has seen all sorts of tech companies pop on debut, though there was a handful of exceptions. Recent successful IPOs include Livongo Health Inc., up 60% on its first day of trading; Health Catalyst Inc., up 51%; Phressia Inc., up 40%; Medallia Inc., up 75%; and CrowdStrike Holdings Inc., up 71%.

As Bloomberg noted, the year’s tech, media and telecom listings that priced above their marketed ranges are trading at an average of 89% above their IPO prices.

Alois Reitbauer, vice president and chief technical strategist at Dynatrace, spoke about how the company’s products work in a recent interview on theCUBE, SiliconANGLE’s livestreaming studio:

Photo: Dynatrace