Direct Listings Are Gaining Steam – Do They Make Better Investments, Too?

An unconventional way of going public is gaining momentum. At a recent event in San Francisco, leading venture capitalists and entrepreneurs gathered with the goal of urging more private companies to pursue direct listings — a rare form of public offering that bypasses the typical IPO process of working with investment banks to underwrite shares. Spotify (SPOT – Get Report)  and Slack (WORK) are the two best-known companies to have pursued direct listings in recent years. In its planned 2020 public offering, Airbnb is also considering a direct listing — and…

Peloton’s Weak Debut a Symptom of a More Discerning IPO Market

It’s been a rough week in the IPO markets. First came the dismissal of Adam Neumann, CEO of The We Company, as part of an effort to save the firm’s troubled IPO. Then came the debut of Peloton (PTON) , a maker of connected fitness equipment, in which the stock fell about 13% from its IPO price of $29 per share. Finally, Endeavor, the global entertainment group, pulled its IPO on Thursday after slashing the price of the offering and the number of shares. It’s reasonable to conclude that the IPO market is looking…

Ahead of IPO, Peloton Reveals Growing Revenue Alongside Growing Losses

Fitness equipment maker Peloton is adding to its top line as well as its net losses, the company revealed in a pre-IPO filing on Tuesday.  Peloton posted revenue of $915 million for fiscal 2019, representing growth of 110% over the prior year. Its net losses also widened, with Peloton reporting a loss of $245.7 million compared to $47.9 million in fiscal 2018.  Pelton, which sells at-home fitness equipment as well as memberships for at-home workouts, said it has a membership base of 1.4 million. Of those members, 511,202 are defined as “connected subscribers,” meaning they have a paid…

Slack’s Direct Public Offering on Thursday: Don’t Expect a Zoom-Like Ascent

Slack is set to go public, and its listing is turning heads — and not just because it’s a rare direct listing, either.  The enterprise tech firm is planning a direct public offering (DPO) — a listing that bypasses the traditional underwriting process — on Thursday, June 20, and it’ll be the latest unicorn to launch into the public markets. On Wednesday, the NYSE set a reference price of $26 per share, a figure that places Slack’s valuation at roughly $16 billion. In a season of many attention-grabbing IPOs, Slack’s financial picture draws comparisons to…

Cybersecurity Firm Crowdstrike Files for an IPO

Crowdstrike Inc., a cybersecurity firm based in Sunnyvale, Calif., is the latest unicorn to file paperwork to go public. In its S-1 filing, Crowdstrike reported approximately $249.8 million in total revenue last year and a net loss of $140 million. The majority of its revenue, equivalent to $219.4 million last year, comes from selling subscriptions with the rest derived from professional services. It also reported year-over-year growth of 137% in subscription revenue and 2,516 subscription customers as of January 31. In a competitive market for cybersecurity services, Crowdstrike specializes in endpoint security, which guards…