SailPoint Re-enters Public Markets with Nasdaq IPO
Cybersecurity firm SailPoint (SAIL) has priced its initial public offering (IPO) at $23 per share, raising $1.38 billion in proceeds. The company's valuation ahead of the IPO stood at $12.6 billion, with Okta (OKTA) as its closest competitor at a $16.8 billion valuation.
SailPoint founder and CEO Mark McClain attributes the market's enthusiasm to the company's "growth at scale with profitability," a combination that has been in high demand. SailPoint previously went public in 2017, debuting with an 8.3% gain, but was taken private by Thoma Bravo in 2022 for $6.9 billion.
Post-IPO, Thoma Bravo will retain an 88% ownership stake in SailPoint and will hold significant influence over board decisions. The company is expected to generate $875 million to $877 million in annual recurring revenue for the year ended Jan. 31, 2025, representing a 41% increase year over year.
While SailPoint has shifted to a software-as-a-service model, the company is still incurring losses, with a net loss of $235.8 million through October 31, 2024. However, McClain claims profitability on a non-GAAP basis.
2025 is expected to be a strong year for tech IPOs, with well-known companies like Stripe potentially debuting. Renaissance Macro predicts a "banner" year with an estimated 155 to 195 companies coming to market and raising $40 billion to $55 billion in funding.
McClain believes that a less regulatory-oriented administration will create a more favorable backdrop for businesses like SailPoint. In 2024, IPOs saw improvement, with a 38% increase in number of deals and a 48% increase in proceeds.