Snowflake, Unity Lead Off Busy Tech IPO Season

Several closely-watched cloud software names are scheduled to go public this month.
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A few months after the pandemic sidelined many IPOs, a crop of new tech names are due to make their public debuts in September. 

Among them are several multibillion-dollar firms working in software, data, cloud infrastructure and related high-growth sectors. Here's a breakdown of who is listing when:

Snowflake

Snowflake sells storage, computing, and cloud services to enterprises looking for efficient ways to manage data, and according to a recent filing, the company is seeking to raise $2.2 billion in an IPO expected on Sept. 15. 

Snowflake set a midpoint price of $80 per share in its IPO, which would place its valuation at around $23 billion. And it recently received a vote of confidence from Salesforce  (CRM) - Get Report and Berkshire Hathaway  (BRK.A) - Get Report, both of which opted to buy several million shares. Snowflake is not profitable, but its financial disclosures show strong top-line growth: Its revenue as of Jan. 31, 2020 had grown 178% from the prior year, from $96.7 million to $264.7 million. Snowflake will list on the NYSE under the ticker SNOW. 

JFrog

Cloud software firm JFrog sells management software for DevOps (Developer Operations), a growing segment of IT that focuses on making development more efficient. The company plans to raise $405 million in an IPO expected on Sept. 15. It will list on the Nasdaq under the ticker FROG. 

With shares priced at between $33 and $37, JFrog's valuation upon going public will be at or above $3 billion. It isn't profitable, but its regulatory filings showed narrowing losses and growing revenue: Sales grew 65% to $105 million in 2019, while revenue in the first half of this year was $69 million, up 50% from the year-ago period. 

Sumo Logic

Sumo Logic sells a new class of cloud software that it calls "continuous intelligence," which includes application monitoring and management for companies of all sizes. It plans to offer shares at between $17 to $21 apiece, and list on the Nasdaq index under the ticker SUMO.

Founded in 2010, the company boasts 2,131 customers, and 329 that each contribute more than $100,000 annually. For the six months ending in July, Sumo Logic's net loss widened to $35.8 million from $29 million in the year-earlier quarter; on a per-share basis, it narrowed to $1.93 from $2.13 as shares outstanding grew 36% to 18.5 million. Revenue grew 38% to $96.6 million. It's aiming to raise roughly $311 million in its IPO, scheduled for Sept. 16.

Unity Software

On the heels of JFrog and Sumo Logic comes Unity Technologies, which is aiming to raise $950 million in an IPO expected on Sept. 17. Unity set a midpoint for shares at $38, and plans to list on the NYSE under the ticker U.  

Unity, which sells a widely-used game development engine, showed a strong growth trajectory in its S-1 filing in a hot games market. It generated $351 million in revenue by June 30 of this year, which suggests a run rate of $700 million or more for the full year. In June, Unity had approximately 1.5 million monthly active creators in over 190 countries, indicating its global footprint. 

Palantir 

Data analytics giant Palantir plans to make its public debut on Sept. 23, and its recently published prospectus gave investors a long-awaited look at the secretive company's financials. It plans to list on the NYSE under the ticker PLTR, and will use a direct listing as opposed to a traditional IPO.

Palantir, whose co-founders include Silicon Valley VC Peter Thiel, sells software to U.S. and foreign government agencies and commercial businesses. It reported revenue $742.5 million in 2019 alongside a net loss of $580 million. In the prior year, its sales were $595.4 million with about the same loss. The company also cautioned that just three large customers made up 29% of its revenue as of June 2020, but said its goal was to become the default data firm for governments. 

Asana 

Asana, which sells collaboration and workflow management software, plans to list shares on the NYSE using a direct listing on Sept. 30. In a direct listing, no new money is raised, unlike in a traditional IPO. 

In its fiscal 2020, Asana's revenue nearly doubled to $142.6 million from $76.8 million. Its net losses also more than doubled, however, growing to $118.6 million from $50.9 million in the year prior. Asana disclosed that it has 3.2 million free accounts, but earns money from 75,000 paying customers. It has also recently refocused its sales strategy on higher-priced subscription plans, which bring higher and more predictable revenue.