Category: initial public offering

June 7, 2019 Off

Weighing Peloton’s opportunity and risks ahead of IPO

By Jill T Frey

Exercise tech company Peloton filed confidentially for IPO this week, and already the big question is whether their last private valuation at $4 billion might be too rich for the appetites of public market investors. Here’s a breakdown of the pros and cons leading up to the as-yet revealed market debut date.

Risk factors

The biggest thing to pay attention to when it comes time for Peloton to actually pull back the curtains and provide some more detailed info about its customers in its S-1. To date, all we really know is that Peloton has “more than 1 million users,” and that’s including both users of its hardware and subscribers to its software.

The mix is important – how many of these are actually generating recurring revenue (vs. one-time hardware sales) will be a key gauge. MRR is probably going to be more important to prospective investors … Read the rest

June 6, 2019 Off

Zoom outperforms in first-ever earnings report

By Jill T Frey

2019 is a great year for Zoom (Nasdaq: ZM). The company outperformed analyst expectations with the release of its first earnings report on Thursday.

The profitable video communications business, which went public this April in one of the year’s most successful initial public offerings, posted revenues of $122 million for the three months ended April 30, 2019, representing a year-over-year increase of 109%.

The Zoom stock is rising in after-hours trading following the news. Zoom closed up 2% Thursday at just over $79 per share. The stock has been trading at more than double its initial offering price in the two months following its IPO.

“In our first quarter as a public company, strong execution and expanding adoption of Zoom’s video-first unified communications platform drove total revenue growth of 103% year-over-year,” Zoom founder and chief executive officer Eric Yuan said in a statement. “Delivering happiness to our customers is our … Read the rest

May 31, 2019 Off

Slack narrows losses, displays healthy revenue growth

By Jill T Frey

Workplace messaging powerhouse Slack filed an amended S-1 with the U.S. Securities and Exchange Commission on Friday weeks ahead of a direct listing expected June 20.

In the document, Slack included an updated look at its path to profitability, posting first-quarter revenues of $134.8 million on losses of $31.8 million. Slack’s Q1 revenues represent a 67% increase from the same period last year when the company lost $24.8 million on $80.9 million in revenue.

For the fiscal year ending January 31, 2019, the company reported losses of $138.9 million on revenue of $400.6 million. That’s compared to a loss of $140.1 million on revenue of $220.5 million the year prior.

Slack is in the process of completing the final steps necessary for its direct listing on The New York Stock Exchange, where it will trade under the ticker symbol “WORK.” A direct listing is an alternative approach to the stock … Read the rest

May 29, 2019 Off

CrowdStrike sets terms for $378M Nasdaq IPO

By Jill T Frey

CrowdStrike, in preparation for its Nasdaq initial public offering, has inked plans to sell 18 million shares at between $19 and $23 apiece. At a midpoint price, CrowdStrike will raise $378 million at a valuation north of $4 billion.

The company, which develops cloud-native endpoint protection software to prevent cyber breaches, has raised $480 million in venture capital funding to date from Warburg Pincus, which owns a 30.2% pre-IPO stake, Accel (20.2%) and CapitalG (11.1%), according to its IPO prospectus. The business was valued at $3.3 billion with a $200 million January 2018 Series E funding.

Sunnyvale, Calif.-based CrowdStrike outlined its IPO plans two weeks ago. The company plans to trade under the ticker symbol “CRWD.”

The cybersecurity unicorn follows several other highly valued venture-backed startups to the public markets, including Uber, Lyft, Pinterest, PagerDuty and Zoom. CrowdStrike’s offering will represent only the second cybersecurity IPO in 2019, however. … Read the rest

May 24, 2019 Off

Luckin leaves bitter aftertaste, now trading below IPO price

By Jill T Frey

In the first few days following Luckin Coffee’s initial public offering, the stock chart for LK looked like a roller coaster. Now it’s looking more like a free fall.

The Chinese Coffee chain successfully completed its highly anticipated offering roughly a week ago, raising more than $550 million after pricing at $17 per share, the high end of its $15-$17 per share range.

Luckin was met with a warm reception from the markets, with the stock skyrocketing roughly 20% to a greater than $5 billion market cap in its first day of trading. However, concerns over the company’s lofty valuation, major cash burn and uncertain path to profitability have caused the stock to nosedive since.

Luckin has dropped around 25% since closing its debut trading day at $20.38 per share, and 40% from its intraday peak of $25.96. As of Friday’s open, Luckin stock sat at $15.44, … Read the rest

May 18, 2019 Off

Big revenues, huge valuations and major losses: charting the era of the unicorn IPO

By Jill T Frey

We can make charts galore about the tech IPO market. Yet none of them diminish the profound sense that we are in uncharted territory.

Never before have so many companies with such high revenues gone public at such lofty valuations, all while sustaining such massive losses. If you’re a “growth matters most” investor, these are exciting times in IPO-land. If you’re the old-fashioned value type who prefers profits, it may be best to sit out this cycle.

Believers in putting market dominance before profits got their biggest IPO opportunity perhaps ever last week, with Uber’s much-awaited dud of a market debut. With a market cap hovering around $64 billion, Uber is far below the $120 billion … Read the rest

May 17, 2019 Off

Under the hood on Zoom’s IPO, with founder and CEO Eric Yuan

By Jill T Frey

Extra Crunch offers members the opportunity to tune into conference calls led and moderated by the TechCrunch writers you read every day. This week, TechCrunch’s Kate Clark sat down with Eric Yuan, the founder and CEO of video communications startup Zoom, to go behind the curtain on the company’s recent IPO process and its path to the public markets.

Since hitting the trading desks just a few weeks ago, Zoom stock is up over 30%. But the Zoom’s path to becoming a Silicon Valley and Wall Street darling was anything but easy. Eric tells Kate how the company’s early focus on profitability, which is now helping drive the stock’s strong performance out of the gate, actually made it difficult to get VC money early on, and the company’s consistent focus on user experience led to organic growth across different customer bases.

Eric: I experienced the year 2000 dot com crash

Read the rest
May 16, 2019 Off

Pinterest delivers first earnings report as a public company

By Jill T Frey

Pinterest (NYSE: PINS) shared lukewarm first-quarter financials on Thursday after the closing bell in what was its first earnings report as a public company.

The company, led by co-founder and chief executive officer Ben Silbermann, posted revenues of $202 million on losses of $41.4 million for the three months ending March 31, 2019. This surpassed Wall Street’s revenue estimates of about $200 million and represented significant growth from last year’s Q1 revenues of $131 million. Losses, however, came in roughly three times higher than estimates at 32 cents per share.

The digital pinboard went public in April, rising 25% during its first day trading on the New York Stock Exchange. Pinterest’s public market performance has continued to stay in the green, closing up about 8% Thursday at nearly $31 per share for a market cap of $16.7 billion.

“The IPO was a significant milestone, but our focus at Pinterest hasn’t … Read the rest

May 16, 2019 Off

Fiverr files to go public, reports revenue of $75.5M and a net loss of $36.1M for 2018

By Jill T Frey

Freelance marketplace Fiverr has filed to go public on the New York Stock Exchange.

The company, which is headquartered in Tel Aviv, is losing money — its net losses grew from $19.3 million in 2017 to $36.1 million in 2018. At the same time, revenue grew by nearly 45%, from $52.1 million to $75.5 million.

“Our mission is to change how the world works together,” Fiverr says in the filing. “We started with the simple idea that people should be able to buy and sell digital services in the same fashion as physical goods on an e-commerce platform. On that basis, we set out to design a digital marketplace that is built with a comprehensive SKU-like services catalog and an efficient search, find and order process that mirrors a typical e-commerce transaction.”

Fiverr was founded in 2010 and, thanks in part to controversial marketing, is seen as … Read the rest

May 13, 2019 Off

Looking back at Zoom’s IPO with CEO Eric Yuan

By Jill T Frey

Since the launch of its IPO in mid-April, Zoom stock has skyrocketed, up nearly 30% as of Monday’s open. However, as the company’s valuation continues to tick up, analysts and industry pundits are now diving deeper to try to unravel what the company’s future growth might look like.

TechCrunch’s venture capital ax Kate Clark has been following the story with a close eye and will be sitting down for an exclusive conversation with Zoom CEO Eric Yuan on Wednesday at 10:00 am PT. Eric, Kate and Extra Crunch members will be taking a look back at the company’s listing process and Zoom’s road to IPO.

Tune in to join the conversation and for the opportunity to ask Eric and Kate any and all things Zoom.

To listen to this and all future conference calls, become a member of Extra Crunch. Learn more and try it for free.

Source Read the rest