Updated on April 15th, 2019.
- IPO date: April 12, 2019.
- IPO price: $24
- IPO valuation: $1.8 billion (TradingView metric)
- Initial post-IPO arc: Strong market response.
The PagerDuty IPO put points on the board for the world of B2B SaaS, a huge startup category and the fount of many a hopeful venture return. The huge initial success of PagerDuty IPO underscored the market’s willingness, in April at least, to snap up SaaS shares despite pressure on companies like Box and Dropbox in the months leading up to its debut.
PagerDuty is unprofitable but has incredibly high-value revenue (recurring, high gross margin). That fact was likely helpful during its IPO process.
- IPO date: March 29, 2019.
- IPO price: $72
- IPO valuation: $24 billion
- Initial post-IPO arc: Exuberance, followed by declines and a massive hangover.
The Lyft IPO marked the start of the unicorn IPO run of 2019. Beating Uber to the public market, Lyft had big growth, and towering losses to match. Its pricing run was strong, and the company priced at the top of its raised range. And then, Lyft opened up more than $10 over its IPO price.
All things looked good. But then Lyft’s stock began to drift down. Quickly falling under its IPO price, Lyft wasn’t helped by the public launch of Uber’s IPO, the expected price of which may have pressured Lyft’s stock even more. As of the time of writing, Lyft is worth only a billion dollars more than its final private price.
Super League Gaming
Super League Gaming, an esports company, went public on February 26, 2019. The company, according to its S-1, sports a “proprietary cloud-based platform [which] provides amateur gamers a modernized way to connect, play and view games in real-time.” Per VentureBeat’s excellent games coverage, in practice, that means that the company “holds local competitions for games like Minecraft and League of Legends in theaters, cafes” and other locations.
We all know by now that Twitch and esports are big deals. However, the new offering went out at $11 per share before falling under $10 during its first day’s trading. Super League Gaming raised around $25 million in its debut.
Why did its shares fall right out of the gate? The company has a slim $1.05 million in revenue during calendar 2018. That was up from just over $200,000 in 2017. However, the company lost a staggering $20.6 million in 2018. That’s one of the worst net margins I’ve ever seen.
Super League Gaming, then, is a growth play and an early IPO. Most companies stay private when they are this unprofitable. It will be interesting to see how the market values the small esports shop moving forward.
To qualify for this list, a company must list on a United States-based exchange, must report at least $1 of revenue in the past year, and be a member of the larger tech community.
For historical coverage, check out our tally of US-listed tech IPOs from 2018.