Cybersecurity company Sailpoint returns to the market as the first major technology IPO of the year
Cybersecurity play brings another return to the public market.
Sailpoint (sail) They are poised to open trading on the Nasdaq on Thursday. The company priced its first public offering (IPO) at the top of the $21-$23 target range, earning $1.38 billion in revenue.
The company prior to the IPO was valuation of $12.6 billion. Its closest competitor, Octa (Octa) is valued at $16.8 billion.
“The market seems to be hungry for what’s called profitable, massive growth today. If you build a fairly large company, you can grow that business and increase profitability. That’s it. It’s today’s magic combo, and we were that profile (the investor on Roadshow) I thought it was interesting.” Yahoo Finance (Video above).
Identity management tech companies are new to the open market.
Thoma Bravo released Sailpoint on November 18th, 2017.
On the first day of trading, the stock rose 8.3% at $13. The company priced the IPO at $12 per share.
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At the time, SailPoint promoted $118.3 million and 34% sales over the nine months of the IPO. There was a net loss of $13 million.
Thoma Bravo made the company private in 2022 at $6.9 billion or $65.25 per share.
Today, SailPoint is a more mature company, operationally and financially more mature, but despite the transition to a software as a service model, it still generates losses.
For the year ended January 31, 2025, the company estimated in its prospectus that it would earn between $875 million and $877 million in annual recurring revenue. That’s an increase of about 41% year-on-year.
SailPoint did not disclose guidance for the final results of the fiscal year.
For the nine months ended October 31, 2024, Sailpoint’s net loss totaled $235.8 million, outperforming the previous year’s loss of $308 million. McClain says the company is making profits on a non-GAAP basis.
SailPoint is defined as a managed company because it is public. Thoma Bravo is expected to own 88% of the post-IPO Sailpoint, and will earn final say on board-level decisions. You can also nominate members on a Sailpoint board.
SailPoint is expected to be the first major test of the Tech IPO market in 2025, with famous names expected to be seen, including the possibility of debuting as Companies Bank in the context of more familiar regulations under President Trump. It’s there.
Renaissance macros are looking forward to the “banner” year of IPOs this year, with an estimated range of 155-195 companies on the market. They were able to collectively raise between $40 billion and $55 billion.