MuleSoft, a San Francisco-based SaaS integration company, last night priced the year's first big enterprise software IPO, raising $221 million. Shares are up sharply in their first day of trading on Friday, giving it a value well north of $3 billion.
Axios spoke by phone with MuleSoft CEO Greg Schott, who touched on IPO timing, acquisitions, immigration policy and his message to company employees about following the stock price:
On why the 11 year-old company is going public now:
"For a growing company like this, investors are most focused on what you're able to do with your free cash flow. We'd managed to take negative cash flow down to negative 4%, on the verge of break-even, while continuing to grow the business at 70% per year, which helped us feel that we were good and ready.... The biggest driver of going public, in general, is that we sell mission-critical software to large-scale organizations and we felt that being a public company would give them more confidence to buy from us."