Trade compliance software is inherently an unsexy space – except for those compliance practitioners that live and die by their global trade management system.
The question is whether the merits of such a system are recognizable to a public that has little time or inclination for customs rules, much less the tools developed to help companies comply with them.
We may soon get a test from Amber Road, one of the leaders in the development of browser-based compliance tools. In mid-February, the company announced that it has filed a Form S-1 statement with the U.S. Securities and Exchange Commission.
Essentially, the filing signals Amber Road’s intent to go public, though the number of shares to be offered and the price range for the offering have not been determined.
One blogger said Amber Road’s potential valuation could be affected by a number of factors
– steady, but not explosive revenue growth for a SaaS provider, and a mix of customers weighted slightly toward the mid-market by number, if not revenue.
But Amber Road is considered a best-in-class solution and has started making strong inroads on its robust transportation management system solution. I’ve spoken in recent months to multiple Amber Road customers that have arrived at the company via their TMS solution, not their compliance solutions. Is this an inflection point for understanding of the company’s full range of tools?
The public offering, if it comes to pass, might be another gauge, albeit from investors rather than industry practitioners.