IPO Update: Chewy, TheRealReal, And Slack

Morning Markets: The IPO market continues apace. Here’s a look at future attractions.

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After the Lyft and Uber and Luckin and Fastly and Zoom IPOs, you are probably ready for a good, long break from public market coverage. Too bad.

There are a number of interesting offerings coming up that you need to understand and watch. So, please consider this morning’s Morning Markets as a homework assignment. The following companies are firms that you should become familiar with, and watch as they debut.

In every IPO, there’s a lesson. Here’s what’s next on the blackboard:

GSX Techedu: Expected to trade this Thursday. Online tutoring for kids in China. The company is profitable ($5 million in net income off $40.1 million in revenue during Q1 2019), and growing quickly. The pretty neat firm, whose F-1 is worth reading, expects to price between $9.50 and $11.50 per share, listing on the New York Stock Exchange under the ticker “GSX.”
Revolve Group: Expected to trade this Friday. This company sells fashion. It claims to be a “next-generation fashion retailer for Millennial and Generation Z consumers.” We’re including it on our list of companies to keep an eye on because it claims to be “data-driven” and run on its own “custom, proprietary technology platform.” Notably, Revolve is also profitable, putting up just under $5 million in net income against $137.3 million in Q1 revenue. Look for this company to price between $16 and $18 per share and trade on the New York Stock Exchange under the symbol “RVLV.”
CrowdStrike: Expected to trade next Wednesday. Cybersecurity shop CrowdStrike is shooting for a valuation of possibly more than $4 billion, making its IPO a big deal. And, as we noted in our prior coverage, the company’s recent financial results have a lot to like in them. Sure, the company still loses money but hey, that’s just 2019.
Chewy: Expected to trade next Friday. Chewy expects to price between $17 and $19 per share, listing on the New York Stock Exchange under the symbol “CHWY.” Chewy is growing but losing money. Its gross profit grew from $150.0 million in the 13 weeks ending April 29, 2018, to $253.9 million in the 13 weeks ending May 5, 2019. And during that period of growth, its net loss fell from about $60 million to about $30 million. But its cash burn from operating activities and its free cash flow each worsened over the year. Active customers rose over the same period.
Slack: Expected to trade June 20th. Next up, everyone’s favorite direct listing. More here when we have it, but for now Slack’s growth is good, its got lots of money, and it’s doing its own thing.
TheRealReal: We don’t know when this company will start trading, but we did get our hands on its numbers recently. Learn more here.