Analytics Unicorn Datadog Will Fetch an $8 Billion Valuation with its IPO

Featured under VC-Backed IPOs in our 2019 Fall IPO Preview: Datadog (DDOG) is scheduled to go public later this week.

Datadog (DDOG), which provides a monitoring and analytics platform for companies' technology stacks, plans to raise more than $600 million by offering 24.0 million shares at a price range of $24 to $22. That’s up from the original range of $19 to $22, a sign of strong demand. At the midpoint of the new range, Datadog would command a market value of $8.1 billion. Founded in 2010, Datadog booked $266 million in sales over the last 12 months. The New York, NY-based company plans to list on the Nasdaq under the symbol DDOG. Backed by Index Ventures, Datadog will be New York’s largest VC-backed tech IPO in more than 20 years.

Datadog (DDOG) joins the year's growing list of VC-backed tech companies going public at $5+ billion market caps (UBER, LYFT, WORK, PINS, CRWD). While its sales multiple is not cheap (28x trailing sales), neither are its closest comps. And with +82% growth in the LTM and near-breakeven EBITDA, Datadog may earn its place among the new elite software names.

Market size: $27+ billion
Competitors: AppDynamics, New Relic, Dynatrace
IPO Bookrunners: J.P. Morgan, Goldman Sachs, J.P. Morgan, and Credit Suisse

Read about other upcoming tech unicorns in our 2019 Fall IPO Preview.
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