Tech Companies That May Follow Line's (LN) IPO, CNBC's Lipton Discusses
NEW YORK (TheStreet) -- Investors are curious as to which tech startup will go public next, after Japanese messaging app Line (LN) - Get Report made its debut on the New York Stock Exchange Thursday morning, CNBC's Josh Lipton reported on "Power Lunch" today.
"There are four tech companies that have filed for an IPO but have yet to go public," Lipton stated, citing a report from CB Insights.
Software vendor Talend, radio-frequency identification software manufacturer Impinj, enterprise virtualization and storage company Nutanix and healthcare technology maker Tabula Rasa Healthcare have all filed for IPOs. Cloud-based spend management software company Coupa Software and cloud-based identity management startup Okta also are reportedly exploring options to go public, according to Lipton.
All of these companies declined comment to Lipton.
"But what connects them is that they're all business-to-business focused. Venture capitalists say that they are more likely to boast financial metrics that public market investors could appreciate such as high growth, recurring revenue and lower cash burn," he noted.
"They're subscription businesses with proven business models where the revenue recurs every month, every year, and it's easier for them to control their costs than many consumer companies," Trinity Ventures' Dan Scholnick explained on CNBC.
As for "those consumer facing companies," like app-based taxi service Uber, they "are in no rush to go public," Lipton commented.
Shares of Line are spiking by 27.41% to $41.84 late this afternoon. The company began trading 29% above its offering price to $42 per share at today's opening bell.