SailPoint, the enterprise identity solutions business, went up 9% in its debut on the New York Stock Exchange Friday. The company raised $240 million after pricing its shares at $12 and saw them rise to $13.11 on its first day of trading.
The Austin, Texas-based company works with businesses like Sallie Mae and Weight Watchers to keep information secure and helps verify identities of employees and others who are looking to access the network.
SailPoint co-founder and CEO Mark McClain described his business as “the control room behind the badge reader,” where it helps companies determine who should be granted access. He characterizes other identity management companies like Duo as “the badge itself” and Okta as “the sign-in.”
The company considers its competitors to be incumbents like CA Technologies, IBM and Oracle. “Identity has been around for a long time but it was not as well understood,” said McClain. “They struggled to keep up with a rapidly evolving landscape.”
The company brought in $118.3 million in revenue for fiscal 2017. This is up from $88.1 million last year. Net losses for 2017 were $13 million, compared to $6.5 million in 2016.
In the “risk factors” section of the IPO filing, SailPoint warned “we have a history of losses, and we may not be able to generate sufficient revenue to achieve and sustain profitability.”
Private equity firm Thoma Bravo owned over 80% of the company prior to IPO. Lightspeed Venture Partners, Austin Ventures and Origin Ventures previously invested in the early days of the company. SailPoint has been around since 2005.