INSUBCONTINENT EXCLUSIVE:
digging into the current IPO market, asking ourselves how much damage WeWork really did to other companies hoping to go public
Bill.com was a heavily venture-backed company that had raised just under $350 million while private across myriad rounds, and by the time
it wanted to go public it still lost money.At the same time, the company had a number of strengths
These include historically slim losses as a percent of revenue ($7.3 million in its most recent fiscal year, against $78.4 million in
revenue), differentiated revenue sources (subscription income and rising interest payments), and improving gross margins (74 percent in its
most recent quarter, up from a little under 72 percent in the year-ago period).Those factors combined were sufficient to entice investors to
Instead, Bill.com raised its range once and then priced above the higher interval
(You can read more on the debut here.)This matters as WeWork was said to have closed the IPO window for companies more focused on growth
losses than its year-ago quarter, which mattered little in the end
may be wondering why we just spent so much time explaining why a healthy company managed to go public
The goal, simply, was to point out that not only can companies still losing money and burning cash go public, they may even get a strong
And luckily for us, it should price its shares this evening
(Even more fun, it targeted the same $16 to $18 per-share initial IPO price range that Bill.com initially had in its own sights.)If Sprout
comical levels of unprofitability and growth.If all that sounds familiar, it should
Observe the following results:Ucommune Q1, Q2, Q3 revenue: $122.4 million
