Sep 19, 2019

Datadog raises $648 million in IPO

Datadog logo. From Datadoghq.com

Datadog, a New York-based provider of cloud app monitoring SaaS, raised $648 million in its IPO by pricing 24 million shares at $27 (above upwardly-revised range).

Why it matters: This values Datadog at $8.7 billion, or more than 13 times higher than the company's last private mark of $640 million. Plus, it's poised to become a massive win for a New York tech scene that's smarting over WeWork — a rebound that Peloton could expand on tonight.

The company reportedly turned down a last-minute, $7 billion-plus takeover offer from Cisco, which was seeking to replicate its AppDynamics deal.

  • By the numbers: Shareholders include Index Ventures (20.1% pre-IPO stake), OpenView Venture Partners (16%), Iconiq (11.3%), RTP Ventures (8.2%), and Meritech Capital Partners.

The bottom line: Datadog will seek to replicate the early aftermarket success of fellow 2019 SaaS companies Zoom Video and Crowdstrike, but not their recent stock price swoons. In just the past month, Zoom shares are down 9.25% and Crowdstrike is off 28.7%.

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Peloton raises more than $1 billion in IPO

Illustration: Sarah Grillo/Axios

Peloton Interactive last night raised $1.16 billion in its IPO, giving it an initial market cap of around $8.1 billion.

Why it matters: It's a much-needed IPO win for both New York's tech startup market and lead banker J.P. Morgan, both of which were reeling from WeWork's spontaneous combustion.

Go deeperArrowSep 26, 2019

The IPO story gets complicated

Illustration: Aïda Amer/Axios

Public market investors have become less willing to leave their comfort zones, and it's manifesting most obviously in the IPO market.

The big picture: Novel disruption has fallen out of favor, with many preferring more time-tested models like enterprise SaaS and biotech.

Go deeperArrowSep 27, 2019

Balance sheets and profits seem to matter to investors again

Illustration: Aïda Amer/Axios

The mood has shifted and balance sheets and profits seem to matter to equity investors again, as the recent debuts of large, money-losing companies have been punished by the market.

Driving the news: Shares of smart stationary bike company Peloton opened down 7% and closed 11% below their $29 IPO price to mark the third-worst performance for an IPO that raised more than $1 billion since the financial crisis, Bloomberg data showed.

Go deeperArrowSep 27, 2019