A wave of US tech IPOs has taken over the April IPO calendar. Five US tech companies are going public over the next 10 days, more than double the four that have IPO'd year-to-date. Those four average a 42% return from IPO, with stand-out returns from the three unicorns valued at over $1 billion.
| Four US Tech Companies Have IPO'd in 2018: 42% Average Return |
|||||
|---|---|---|---|---|---|
| Issuer Business |
Trade Date | LTM Sales YoY Growth |
Deal Size IPO Mkt Cap |
Price vs. Midpoint |
1st-Day Pop 04/17 Return |
| Zuora (ZUO) San Mateo, CA |
04/12/18 | $168M +30% |
$154M $1,643M |
40% | +43% +47% |
| Provides a cloud-based subscription billing and management platform. | |||||
| Dropbox (DBX) San Francisco, CA |
03/23/18 | $1,107M +31% |
$756M $9,437M |
24% | +36% +42% |
| Leading web-based cloud storage and collaboration platform. | |||||
| Zscaler (ZS) San Jose, CA |
03/16/18 | $154M +57% |
$192M $2,056M |
46% | +106% +80% |
| Provides a cloud-based network security service for enterprises. | |||||
| Cardlytics (CDLX) Atlanta, GA |
02/09/18 | $128M +15% |
$70M $267M |
-7% | +3% +9% |
| Provides a banking-based advertising channel to consumer products marketers. | |||||
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Five more US tech IPOs are scheduled for April, including four enterprise software companies with proposed valuations of more than $1 billion. Investors have demonstrated a strong appetite for high-growth software plays, which should benefit Pivotal, DocuSign and Smartsheet. DocuSign in particular boasts over $500 million in sales, 36% growth and positive free cash flow. While Smartsheet has high losses and comparatively lower annual sales, its blazing-fast growth (+66%) should garner interest.
| Five US Tech Companies Scheduled to Go Public | ||||
|---|---|---|---|---|
| Issuer Business |
LTM Sales YoY Growth |
Deal Size Market Cap |
Price Range Shares Filed |
Pricing Date |
| Pivotal Software (PVTL) San Francisco, CA |
$509M +22% |
$555M $4,274M |
$14 - $16 37,000,000 |
Thu 04/19 |
| DellEMC spin-off providing a platform to streamline cloud software development. | ||||
| Ceridian HCM (CDAY) Minneapolis, MN |
$751M +7% |
$420M $2,753M |
$19 - $21 21,000,000 |
Wk of 04/23* |
| Provides enterprises with human capital management software. | ||||
| DocuSign (DOCU) San Francisco, CA |
$519M +36% |
$543M $4,676M |
$24 - $26 21,700,000 |
Wk of 04/23* |
| Provides a cloud-based electronic signature platform. | ||||
| Smartsheet (SMAR) Bellevue, WA |
$111M +66% |
$128M $1,204M |
$10 - $12 11,632,950 |
Wk of 04/23* |
| Provides a spreadsheet-based work collaboration platform. | ||||
| nLight (LASR) Vancouver, WA |
$139M +37% |
$76M $533M |
$13 - $15 5,400,000 |
Wk of 04/23* |
| Manufactures high-power semiconductor and fiber lasers. | ||||
IPO PRO EXCLUSIVE: The chart below shows the valuation multiples for the year's US enterprise software IPOs, and their growth rates. Each of the year's three unicorns has delivered strong returns, averaging 54% from IPO price, mostly in first-day gains. That's a good sign for the upcoming high-growth names below.
