A Strong Comeback to Public Trading Strong IPO Performance
SailPoint, a leading identity management technology firm, has made its return to the public market, marking the first major tech Strong IPO Performance of 2025. The company set its initial public offering (IPO) price at the upper range of $21 to $23 per share, successfully raising $1.38 billion. This latest move places SailPoint’s valuation at $12.6 billion, positioning it as a strong competitor to Okta, which holds a valuation of $16.8 billion.
SailPoint’s CEO, Mark McClain, highlighted investor enthusiasm during the company’s Strong IPO Performance roadshow, emphasizing the importance of achieving both scale and profitability in the current market. According to McClain, businesses that demonstrate substantial growth while maintaining financial discipline are particularly attractive to investors.
SailPoint’s Journey in the Public and Private Markets , Strong IPO Performance
SailPoint is no stranger to public trading. The company initially debuted on the stock market in 2017, around the same time as competitor Okta. On its first day of trading, the stock closed with an 8.3% increase at $13 per share, after pricing its Strong IPO Performance at $12. At the time, the company reported $118.3 million in revenue, reflecting a 34% growth rate over the previous nine months, despite incurring a net loss of $13 million.
However, in 2022, the private equity firm Thoma Bravo took SailPoint private in a $6.9 billion deal, acquiring shares at $65.25 each. Since then, the company has transitioned toward a software-as-a-service (SaaS) model, aiming for higher operational efficiency. While this shift has fueled growth, SailPoint has yet to turn a net profit.
For the fiscal year ending January 31, 2025, SailPoint projected annual recurring revenue between $875 million and $877 million, marking a 41% increase year over year. Despite showing financial improvement, the company reported a net loss of $235.8 million for the nine months ending October 31, 2024—an improvement from the $308 million loss recorded in the previous year. According to McClain, SailPoint remains profitable on a non-GAAP basis.
Market Expectations and Regulatory Landscape
SailPoint’s return to the stock market is being closely watched as a key indicator of investor sentiment toward tech IPOs in 2025. The market is anticipated to see several major debuts, including potential listings from well-known firms such as Stripe. Analysts at Renaissance Macro predict a strong year for IPOs, with expectations of 155 to 195 companies entering the market and raising between $40 billion and $55 billion.
Industry experts suggest that the business environment may become more favorable under the current administration, which is expected to be less focused on regulatory intervention. McClain noted that this shift could create a more business-friendly atmosphere, allowing companies to operate with greater flexibility.
The previous year saw significant improvement in Strong IPO Performance activity, with the number of public offerings rising by 38% and total proceeds increasing by 48%, according to EY. In 2024, US IPOs raised a collective $33 billion, with an average 30% gain for deals that secured at least $50 million. As SailPoint makes its public market return, its performance may serve as a benchmark for upcoming IPOs in 2025.
