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PagerDuty pops nearly 60% in debut as tech IPO market heats up
- raiyu 8y agoLooks like investors were very hungry for this one and the high jump on the first date indicates that they are viewing Pagerduty in the same market segment as MongoDB and Twilio. Same set of customers, expanding market as each of those customers increase their server foot print. Also with the 50% pop looks like investors were ready to give them future growth so the company definitely left money on the table with their IPO pricing. But none the less amazing IPO. Hopefully stock stays in the range on Friday.
- shhehebehdh 8y agoI don’t really get what makes this an amazing IPO. Afaict they left 33% of the money on the table. How is that a good thing for the company or the shareholders?
- dalbasal 8y agoOne way or another, that shouldn't be that big a deal. The company doesn't necessarily raise that much on IPO day. The importance of raising that sum at a 20% higher/lower valuation probably isn't the biggest thing at stake. The IPO isn't primarily fund raising, especially for this current crop of more mature unicorns. It's primarily liquidity generating.
- sb8244 8y agoIt would be good for people who bought in (higher margin), good for people selling in 6 months (employees), and bad for the company (money on the table).
- breerly 8y agoThis sounds right.
- dcaisen 8y agoDon't forget about the underwriters (investment bankers) who will be paid a hefty sum by Pagerduty (despite underpricing the IPO) and who also just got a ton of goodwill from their top trading clients who got those IPO allocations
- analyst74 8y agoI don't see how this is better for employees, assuming there is a stable price X, whether you price IPO at X * 0.8 or X * 1.2, by the time 6 months is passed and employees are able to sell, it probably have already converged to X.
- deathhand 8y agoI think its most likely due to high usage of the service & income of those who use the service. Devops can make bank, and devops need this SAAS.
- romanhn 8y agoFun fact - this is the second YC IPO, after Dropbox.
- testfoobar 8y agoI'm looking at the S-1 for Pagerduty. It doesn't mention Y Combinator. Who/what entity represents Y Combinator in the shareholdings? Can we guesstimate their return? https://www.sec.gov/Archives/edgar/data/1568100/000162828019003003/pagerdutys-1.htm https://www.sec.gov/Archives/edgar/data/1568100/000162828019...
- jedberg 8y agoYou won't see them in there because their percentage is too small to be listed (under 5%).
- vichu 8y agoS-1s only list >5% stockholders - you'll note that the co-founders have been diluted down to 7.1%. Y Combinator has definitely been diluted below that amount, that being said random back of the napkin (aka pulled from my ass) numbers for their share count is probably 700,000ish so their return is pretty damn good.
- alphagrep12345 8y agoJust second?
- maxxxxx 8y agoJust looked up Dropbox stock price. Not exactly pretty. This is not the 90s when the retail investor could make money from tech stocks. SNAP is bad, Dropbox doesn't look good. Neither does Lyft.
- defen 8y agoSQ up 5.8x since Nov 2015 TEAM up 4.1x since Dec 2015 TWLO up 4.7x since Jun 2016 SHOP up 7.4x since May 2015 OKTA up 4x since Apr 2017 ZS up 2x since Mar 2018 Retail investors can definitely still make money.
- julianlam 8y agoVery interested in seeing the opening days of both Pagerduty and Zoom (next week). So far PD has exceeded my expectations. Their product ain't half bad either
- losvedir 8y agoGood for them. IIRC, don't they use a lot of elixir? Is this the first public company to have a big elixir tech stack?
- zinclozenge 8y agoThe extent of their usage of Elixir is highly questionable. One of their employees was at elixirforum.com for recruiting but could not, or would not answer how much they use it for. There's also some partially substantiated rumors that the Elixir was a single employee's experiment, and those services were either in the process, or had already been re-written in Scala.
- anthonybullard 8y agoI don't think this is correct, from [1]: Today, we have a good mix of teams that are fully on Elixir, teams that are ramping up, and teams who are still waiting for the first project that will allow them to say, “We’ll do this one in Elixir.” [1]: https://www.pagerduty.com/blog/elixir-at-pagerduty/ https://www.pagerduty.com/blog/elixir-at-pagerduty/
- zinclozenge 8y agoWhich makes me wonder why the employee in question, Cees de Groot, was so adamantly refusing to answer the question in any sort of detail.
- sergiotapia 8y agoMaybe he just didn't want to put his foot in his mouth.
- romanhn 8y agoI left PD about 5 months ago, so my information might be slightly outdated, but I can confirm that Elixir is used quite a bit internally, including for highly available critical services that all event data passes through. While there might be some truth to Elixir starting out as an experiment, its adoption has not only spread to multiple teams, but it is also the language most new services are to be written in, going forward. The unique thing about Elixir is how it appealed to both Ruby and Scala folks internally.
- deleted 8y ago[deleted]
- dalbasal 8y agoSomething scary about the current surge in IPOs.... Kinda feels like PEs are deciding the time to cash-out is now.