JFROG company that builts tools for Devops going IPO 9/16.
“JFrog Artifactory is a universal DevOps solution providing end-to-end automation and management of binaries and artifacts through the application delivery process that improves productivity across your development ecosystem”
Price raised $39-41 will open $62-75 (most likely)
valuation is Sky high almost 33x-40x revenue @ IPO price
at opening price Valuation is out the door and pricing it @ 6Billion
Growth of 50% slowing down, but still expected to grow for next 30-35% annualized for next 5 years.
so you are expecting revenue of $550 million in 2025
for normalized valuation.
Lets compare it to peers in SaaS industry
ZS (Zscaler) 35x revenue (best of the best)
Zuo (Zuora) 3x revenue worst outcome
Docu 37x revenue do we think FROG is docusign?
SMAR 20x Revenue
PD 10x Revenue
So JFROG has similar growth outlook at PD and gross margins are really good (almost BE on cash flow basis)
paying 40x revenue is paying the highest premium around.
The IPO is priced way above comparable.
The Perfect Recent example we can compare valuation + growth + revenue is JAMF.
Which went IPO 2 months ago it was expected to go IPO $17 to $19 but was raised to $21 to $ 23 2.7Billion Valuation>
opened $46 went as High as $51 low of $35
and has continued to Drop $32. Its currently trading 17x revenue.
So if you can get into it at IPO price great, expect quick pop (but caution to hold it for 15 or 30 days) as after the pop if you are unable to sell it.
it may continue to drift downward.
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