SailPoint stock drop ‘hard to explain’ after post-IPO earnings, CEO says
SailPoint (
SAIL
) is charting the course for a potentially big year, even if the market sees it otherwise today.
SailPoint stock was volatile during Wednesday trading as investors digested the cybersecurity company’s first earnings report since going
public in early February
. Shares fell as much as 4% to $20.94 in afternoon trading but rebounded slightly in the final hour of trading to close 1% lower.
“We’re scratching our heads a little [on the market reaction]. We’re hopeful that by the end of the day, we see something different here,” SailPoint founder and CEO Mark McClain told Yahoo Finance over the phone. “But … we learned a while ago in these markets you’ve got to do what you can do, control what you can control, build the right products, sell them well, support your customers. And when you do that, and the business grows — and grows with a nice profile of profitability — ultimately, these things do sort themselves out. Today is hard to explain. Honestly, we beat every, every number.”
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The cybersecurity company posted $240 million in sales, an 18% year-over-year increase. Adjusted operating profits rose to $46 million from $28 million a year earlier.
For the full year, SailPoint guided to sales of $1.025 billion to $1.035 billion. The Street was modeled for $1.02 billion. Adjusted earnings per share are pegged in a range of $0.14 to $0.18, ahead of estimates for $0.09.
McClain said there has been no slowdown in demand.
“This is the gift that keeps on giving,” McClain added. “Because when you’re in the world of cyber, … at one level, it’s good guys versus the bad guys. And the bad guys aren’t going away, they’re getting stronger.”
SailPoint began trading on Feb. 13 at the Nasdaq. The company priced its initial public offering (IPO) at the top end of its targeted range of $21 to $23, raising $1.38 billion in proceeds.
The company’s valuation ahead of its IPO stood at $12.6 billion. The stock closed its first day of trading at $22 per share, and the stock hit a closing high of $25.70 on Feb. 16. Today, after the earnings day slide, SailPoint’s market cap stands at $11.9 billion.
The identity management tech firm is no stranger to public markets.
Private equity firm Thoma Bravo took SailPoint public on Nov. 18, 2017, around the same time as the debut of SailPoint’s quasi-competitor, Okta (
OKTA
).
Thoma Bravo then took the company private in 2022 for $6.9 billion, or $65.25 a share.
SailPoint was the first big test of the tech IPO market in 2025. The strong market reception despite the volatile backdrop for stocks in the first quarter has sent many other private companies to file for IPOs this month, including eToro (
ETTO.PVT
), StubHub, and CoreWeave (
CORW.PVT
).
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CoreWeave is expected to debut on the Nasdaq exchange this Friday.
Yahoo Finance private company data
shows CoreWeave’s valuation at $24 billion ahead of its listing, making it one of the top 10 highest-valued private companies in the world.
Renaissance Macro expects a “banner” year for IPOs this year, estimating 155 to 195 companies will come to market. They could collectively raise $40 billion to $55 billion in funding.
The number of IPOs jumped by 38% last year, and proceeds rose 48%,
according to EY
. The 2024 IPO aftermarket performance on US exchanges showed strength, with average gains tallying 30% for deals that raised $50 million and above.
In total, 176 US IPOs raised $33 billion in 2024.
Brian Sozzi
is Yahoo Finance’s Executive Editor. Follow Sozzi on X
@BrianSozzi
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