|Bid||47.15 x 1000|
|Ask||47.52 x 800|
|Day's Range||49.53 - 51.98|
|52 Week Range||36.00 - 59.82|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||48.67|
(Bloomberg) -- Stewart Butterfield loved the game, but not enough people agreed with him. He spent two years and raised roughly $11 million to build an online adventure game called Glitch that featured garrulous, blue-headed creatures and milk-drunk butterflies.Once people had a chance to play it and Butterfield could track the numbers, the verdict was clear: Glitch was a flop. “There was this night where I just lost faith,” Butterfield said in a podcast interview. He decided in 2012 that it was game over. Butterfield made plans to shut down the company and give the remaining money back to his investors.Andrew Braccia, a partner at venture capital firm Accel, wouldn’t accept the refund. He and other investors urged Butterfield to keep the remaining $5 million and try something else. That turned into Slack Technologies Inc., the maker of corporate chat software that went public Thursday. At the close of trading, Slack’s market value was $19 billion.Accel invested about $200 million in Slack over seven years, largely driven by Braccia’s unwavering faith in Butterfield. As of the stock debut, Accel held 24% of the company, the biggest VC stake in a newly public unicorn in recent history. Those shares are worth $4.6 billion today.Owning such a large chunk of a company is unusual in venture investing for a couple reasons. If a startup appears to be succeeding, founders and other investors compete fiercely for shares. And when things are uncertain, overexposing a fund to one company can be a foolish gamble. “They don’t all look like winners right away,” said Trae Vassallo, managing director of early-stage venture firm Defy.The startup failure rate is 67%, according to research firm CB Insights. Just 1% of those achieve a unicorn valuation of at least $1 billion. “You have to have a clear conviction when making a concentrated bet,” said Byron Deeter, a partner at Bessemer Venture Partners. “If you’re right, you’ll be disproportionately rewarded. But if it goes bad, there’s a real risk.”Slack is what happens when a risky bet pays off. The value of Accel’s stake is greater than that of any private financier of Lyft Inc., Snap Inc., Spotify Technology SA or Twitter Inc., each of which went public at higher market values.In an interview Thursday, Butterfield said Accel was eager to buy into every funding round for Slack—of which there were many—and offered to invest more than expected almost every time. The company had raised more than $1.2 billion in private capital, according to CB Insights data. “Our whole board, the VC members of the board, have worked incredibly hard,” Butterfield said. “I feel incredibly well supported.”In the windup to Slack’s listing, Accel converted about a quarter of its Slack holdings to common stock, allowing it to sell that portion of its shares. Such a transaction could return more than $1 billion for the VC firm, earning back the total sum of several funds. And that doesn’t account for two other Accel companies that have gone public since April, Crowdstrike Holdings Inc. and Pagerduty Inc.In 2012, when Butterfield was convinced he’d failed, Braccia was steadfast, said Bradley Horowitz, who put some of his own money in the game company. That’s probably because Braccia recalled what happened the last time Butterfield made a bad game. It morphed into a popular photo-sharing site called Flickr, which Yahoo! bought for around $25 million in 2005. Braccia, Butterfield and Horowitz all worked together at Yahoo.Horowitz, now a vice president of product at Google, said Braccia “was the one who said ‘keep going.’ He had the determination.” Horowitz joined Braccia in refusing to take his money back when Butterfield was ready to give up. “Stewart could have told me he was building a new coat hanger,” Horowitz said. “I would be all in.”Braccia declined to be interviewed, citing the regulatory quiet period. Bloomberg Beta, the venture capital arm of Bloomberg LP, is also an investor in Slack.In 2015, just as Slack was beginning to gain traction, Braccia explained why he was making such a big bet on the company. Butterfield has an uncanny ability to recover from failure and then rally people around his next idea, Braccia told a crowd at the time: “He’s resilient. He’s been knocked down multiple times, and he’s picked himself back up.”\--With assistance from Ellen Huet.To contact the author of this story: Lizette Chapman in San Francisco at email@example.comTo contact the editor responsible for this story: Mark Milian at firstname.lastname@example.org, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
There are no assurances that the reference price will reflect early trading in Slack stock, which will trade under the ticker symbol “WORK.”
(Bloomberg Opinion) -- Slack Technologies Inc. couldn’t have picked a better time to go public. Investors have lost their minds about software companies.Earlier this year, I wrote about how stock buyers were willing to pay handsomely to own shares of fast-growing companies that sell cloud software to businesses. As investors had grown antsy about the FAANGs — the elite technology superpowers such as Apple Inc. and Google parent company Alphabet Inc. — the software PUTIN stocks, as I semi-apologetically called them,(1)were ascendant. Since then, investors have warmly greeted new stock listings by even more business software firms including Zoom Video Communications Inc., Pagerduty Inc. and CrowdStrike Holdings Inc.I went back to my self-selected cohort of 17 business software firms that included Salesforce, Adobe, Atlassian and ServiceNow. The median stock multiple of my cohort, which I had to adjust slightly because of acquisitions, didn’t budge much since the February analysis.The median market value adjusted for cash and debt was about 10.3 times a blend of revenue estimated in the next year, compared with 9.8 times in February. The price-to-earnings multiple of the S&P 500 index has also increased since then.(5) What really stood out was the top-tier companies in my PUTIN index have grown even more bubbly.Look behind the velvet rope to find the 20x Club, the most popular hot spot in stock markets. More than half a dozen software firms now have enterprise values that are more than 20 times expected revenue in the next year, according to Bloomberg data.That is — to put it mildly — not normal. Relative to revenue, buying a share of pharmaceutical software firm Veeva Systems Inc., a member of the 20x Club, is four times the price of Alphabet, one of the dominant companies of this generation. Some of the members of the 20x Club are newly public, and it’s not unusual to see young companies with stock market values that are a bit out of whack. But 20x Club members also include Veeva, Atlassian Corp., Okta Inc., MongoDB and other companies that have been public for 18 months or more. As corporate-messaging service Slack plans to list its shares Thursday in a not-IPO,(2)it may join this elite crew. A valuation for Slack of $17 billion or so would work out to an enterprise value to forward revenue in the ballpark of the 20x Club.There are understandable reasons these business software firms, which are relatively unknown by normal humans, have become darlings of the stock market and technology investing. Something real and seemingly permanent is changing in how companies large and small buy technology. Companies are desperate to modernize their technology so they don’t get left behind and can take advantage of growth opportunities, and that has made them open their wallets to buy new types of internet-friendly, easy-to-use software that promises to help make their marketing spending more efficient, catch cyberattacks before they cripple systems or enable seamless communications among far-flung employees.I’m not yet convinced that these young cloud software companies can ever grow as large as their investors believe, particularly if an economic downturn forces companies to rationalize their technology budgets. But software truly is eating the world, and that has accrued to the benefit of both titans such as Microsoft and relative newcomers like the members of the 20x Club.At the same time, investors are desperate for growth, and business software firms are delivering it in spades. They can also be relatively easy to understand — they sell software in exchange for cash — and businesses have proved to be relatively reliable consumers, unlike people and their tendency to flit from one hot internet thing to the next. And now that superstar tech companies have run into regulatory problems, been hit with tariffs or otherwise have more question marks than before, a bet on a company selling software that an antitrust lawyer would never notice suddenly looks like a good idea. The question is what that promise costs. As stock buyers pay more relative to a company’s revenue, any wobble in growth can result in a crash, and investors’ room for error narrows when stock prices are already high relative to a company’s financial prospects. High stock valuations may also deter some needed consolidation in business software. It has become fashionable not to care about valuation, but there can be a high price to bubbles in share prices. Of course, I could have called a bubble in business software stocks at multiple points in the last decade and it would have been accurate in the moment yet completely wrong. An index of mostly business software companies, the BVP Nasdaq Emerging Cloud Index, has more than quintupled since 2013, compared with a 74% gain for the S&P 500 over the same period. It’s true that 10 years into an unprecedented bull market in stocks, unusual valuations are par for the course. Maybe the bubble for business software firms will never end, or stock prices of these highflying software firms will deflate slowly rather than blow up. Maybe. Or there may be a high price to pay for software companies in an unprecedented stratosphere. (1) No, I am not sorry at all. I will say, however, that the "U" in PUTINs, Ultimate Software Group Inc., was sold in May to an investor group. My acronym is broken.(2) Yes, these software companies tend to be valued as a multiple of revenue rather than profits. In many cases they don't have profits.(3) Bloomberg Beta, the venture capital arm of Bloomberg Opinion parent Bloomberg LP, is an investor in Slack.To contact the author of this story: Shira Ovide at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Several IPO stocks have been on a tear lately as innovative products fuel booming sales. Most aren't profitable, but Wall Street doesn't seem to mind.
The rebalancing of the family of Russell indexes at the end of June will see a number of recent IPOs added, providing a temporary boost to those companies' shares.
PagerDuty has been fond of calling its software the "central nervous system" for a company's digital operations. Its core cloud software platform, which is sold via four subscription plans, is used by teams of on-call IT workers in fields such as IT operations, security operations, DevOps and customer support to be notified about and address various types of unexpected incidents and events. Following PagerDuty's earnings report, I had a chance to talk with Jenn Tejada, who has been the company's CEO for the last three years.
PagerDuty answered the call, delivering a beat-and-raise quarter in its first earnings report as a public company.
(PD) a San Francisco-based provider of digital operations management software, came out strong in its first earnings report since it went public on April 10 at $24 a share. In early trading Friday, PagerDuty shares were up 5.1% at $50.02—more than double the initial public offering price. For its fiscal first quarter, ended April 30, PagerDuty (ticker: PD) posted revenue of $37.3 million, up 49% year over year, and ahead of the Street consensus at $35 million.
Stock futures rose ahead of the jobs report as the stock market rally ramps up on Mexico tariff delay hopes. Hot new IPOs Beyond Meat, Zoom Video and PagerDuty rallied after earnings.
In its first earnings report since an initial public offering and early trading that ramped up expectations, PagerDuty Inc. predicted that sales would grow nearly 40% this year and saw shares gain even more. The enterprise-software company reported losses of $12.1 million, or 37 cents a share, on revenue of $37.3 million. After accounting for stock-based compensation, the company claimed a loss of 22 cents a share. Analysts on average expected adjusted losses of 23 cents a share on sales of $35 million, according to FactSet. The company said it expects to report an adjusted loss of 37 cents to 38 cents a share for the full year on revenue of $161 million to $163 million. Analysts surveyed by FactSet on average expected full-year losses of 39 cents a share on revenue of $155.8 million, according to FactSet. PagerDuty stock -- which priced at $24 in the IPO -- jumped more than 9% in after-hours trades following the announcement, after closing at $47.56.
NEW YORK, NY / ACCESSWIRE / June 6, 2019 / PagerDuty, Inc. (NYSE: PD ) will be discussing their earnings results in their 2020 First Quarter Earnings to be held on June 6, 2019 at 5:00 PM Eastern Time. ...
The stock market showed mixed action Thursday, as the Dow Jones industrials edged higher. Zoom Video will report earnings after the close.
Lyft Inc. and Uber Technologies Inc. haven’t given 2018 initial public offerings a good reputation, but investors are about to hear from a few companies that have.
All six have doubled in value — or more — since their Wall Street debuts and they are either headquartered in the Bay Area or backed by investors from the region.
This San Francisco-based company will begin trading on the NYSE Friday and IPO experts say it’s expected to fare much better than Uber and Lyft.
Shares of recently public tech names have all rallied this week, but the broader trend is that investors are clearly separating out the wheat from the chaff, as TheStreet predicted not long ago. The trend, however, shows a a separation: the big consumer names, Uber, Lyft, have traded down, while the more focused B2B companies -- Tufin, Zoom and PagerDuty -- have soared. Pinterest, meanwhile, which appears to be much closer to profitability than either Uber or Lyft, has seen more modest stock gains than those three more focused names.
Cloudability, the pioneer and leader of the FinOps market, today announced a new integration available inside the Cloudability platform for all clients of PagerDuty (PD), a global leader in digital operations management. The integration helps IT, finance and business teams quickly spot waste in real-time and fully utilize cloud spend by escalating notification to the appropriate operations teams as they occur without waiting for a monthly bill. This type of cross-team collaboration, known as FinOps, enables customers to bring financial accountability to the variable spend model of cloud in real-time.
The company led by former McAfee executive George Kurtz is expected to seek a valuation that's higher than the $3.4 billlion it was figured to be worth in a funding round last June.
A South San Francisco biotech's offering soared on Thursday, but a San Mateo ruggedized smartphone maker's priced well below its targets. Here's more on that and other Bay Area founder and funder news at the end of the week.