SailPoint Returns to Public Markets with Strong IPO
Austin, Texas — Cybersecurity firm SailPoint (SAIL) made a successful return to public markets on Thursday, raising $1.38 billion in its initial public offering (IPO). The company priced its shares at the top end of its targeted range of $21 to $23.
A Positive Reception from Investors
SailPoint's IPO was met with strong demand from investors, indicating a hunger for growth companies with profitability. The company's valuation ahead of its IPO stood at $12.6 billion, making it comparable to its competitor Okta (OKTA), which is valued at $16.8 billion.
A Return to Public Markets
SailPoint is no stranger to public markets. It was previously taken public by Thoma Bravo in 2017 and debuted around the same time as Okta. On its first day of trading, SailPoint's stock finished up 8.3%.
Growth and Losses
Since its previous IPO, SailPoint has matured operationally and financially. It estimates annual recurring revenue of $875 million to $877 million for the year ended January 31, 2025, representing a 41% increase year-over-year.
Despite transitioning to a software-as-a-service model, SailPoint is still producing losses. Through the nine months ended October 31, 2024, its net loss totaled $235.8 million. However, the company claims to be profitable on a non-GAAP basis.
Post-IPO Control
Post-IPO, SailPoint will be defined as a controlled company, with Thoma Bravo expected to own 88% of the company and have final say over board-level decisions. Thoma Bravo will also be able to nominate members to SailPoint's board.
IPO Market Outlook
SailPoint's IPO is a positive sign for the tech IPO market in 2025, which is expected to see well-known names like Stripe debut. Renaissance Macro predicts a strong year for IPOs, with an estimated volume of 155 to 195 companies coming to market and raising $40 billion to $55 billion in funding.