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Here's 3 Tech Companies That Could IPO Before the End of 2016
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Despite the relative sluggishness of the IPO market so far this year, several key indicators suggest that we could see IPO activity pick up during remainder of 2016. More specifically, the technology sector should see a fresh batch of companies going public throughout the fall and winter months.
Based on the returns of the few tech companies that have gone public this year, including LINE and Twilio (TWLO - Free Report) , private companies in the sector are starting to feel more comfortable with the market conditions for newly-public tech stocks.
While blockbuster deals from the popular “unicorns” like Snapchat will probably wait until next year, several technology companies have already set their IPOs in motion, and these debuts should come sooner rather than later (also read: Inside Snapchat: The Best Tech IPO of 2017?).
Thanks to the most recent market outlook report from IPO-focused research firm Renaissance Capital, we have a wide range of private tech companies that are looking to go public on our radar. Here’s three that could IPO before the end of 2016:
1. PointClickCare
PointClickCare is a cloud-based Software as a Service (SaaS) platform that provides health record and revenue management services to the senior care industry. The company filed for an IPO back in June, and its impressive record of growth over the past two years shows that it is in a good position to perform strongly upon its debut.
As Renaissance points out, PointClickCare saw 27% sales growth in its most recent quarter, and the company recently turned EBITDA positive in 2015. It’s also important to note that the senior care industry is undergoing major change, and with an increasing number of elderly people in the population, PointClickCare’s potential customer base should only keep growing.
2. Trivago
Trivago is an online hotel search aggregator that combs over one million hotels in 55 countries. Back in 2012, Expedia (EXPE - Free Report) purchased a 62% stake in the company for €477 million. Expedia announced that it plans to bring Trivago public sometime between now and March; if an IPO fails to occur by then, investors can assume Expedia decided to take a different direction.
Renaissance Capital highlights the company’s strong revenue growth of 41% in the second quarter, bringing its last-twelve-month total to $660 million. The firm also suggests an IPO would value Trivago at about $5 billion.
3. Coupa Software
Coupa is a provider of enterprise-level cloud-based financial services that help companies manage their spending. Its current customer list includes Adidas (ADDYY - Free Report) , Dollar General (DG - Free Report) , Salesforce.com (CRM - Free Report) , and Toyota (TM - Free Report) . In its most recent round of funding, the company raised $80 million at a $1 billion valuation.
Coupa registered with the SEC in June under a federal law that allows companies with under $1 billion in revenue to file for an IPO confidentially. Renaissance estimates Coupa’s annual revenue to be about $47 million, and other reports suggest the company intends to raise $75 million during its IPO.
Bottom Line
For investors looking for stellar tech IPOs, this year has been pretty boring, with the exception of a few standouts. However, the above companies are in the IPO pipeline and could be making their market debuts soon. For more coverage on the state of the IPO market, check out our IPO Market Outlook for Second Half of 2016.
If you’d like to hear about which other companies Renaissance Capital thinks could be going public soon, check out this exclusive interview with the firm’s own Kathleen Smith from the Zacks Friday Finish Line team:
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Here's 3 Tech Companies That Could IPO Before the End of 2016
Despite the relative sluggishness of the IPO market so far this year, several key indicators suggest that we could see IPO activity pick up during remainder of 2016. More specifically, the technology sector should see a fresh batch of companies going public throughout the fall and winter months.
Based on the returns of the few tech companies that have gone public this year, including LINE and Twilio (TWLO - Free Report) , private companies in the sector are starting to feel more comfortable with the market conditions for newly-public tech stocks.
While blockbuster deals from the popular “unicorns” like Snapchat will probably wait until next year, several technology companies have already set their IPOs in motion, and these debuts should come sooner rather than later (also read: Inside Snapchat: The Best Tech IPO of 2017?).
Thanks to the most recent market outlook report from IPO-focused research firm Renaissance Capital, we have a wide range of private tech companies that are looking to go public on our radar. Here’s three that could IPO before the end of 2016:
1. PointClickCare
PointClickCare is a cloud-based Software as a Service (SaaS) platform that provides health record and revenue management services to the senior care industry. The company filed for an IPO back in June, and its impressive record of growth over the past two years shows that it is in a good position to perform strongly upon its debut.
As Renaissance points out, PointClickCare saw 27% sales growth in its most recent quarter, and the company recently turned EBITDA positive in 2015. It’s also important to note that the senior care industry is undergoing major change, and with an increasing number of elderly people in the population, PointClickCare’s potential customer base should only keep growing.
2. Trivago
Trivago is an online hotel search aggregator that combs over one million hotels in 55 countries. Back in 2012, Expedia (EXPE - Free Report) purchased a 62% stake in the company for €477 million. Expedia announced that it plans to bring Trivago public sometime between now and March; if an IPO fails to occur by then, investors can assume Expedia decided to take a different direction.
Renaissance Capital highlights the company’s strong revenue growth of 41% in the second quarter, bringing its last-twelve-month total to $660 million. The firm also suggests an IPO would value Trivago at about $5 billion.
3. Coupa Software
Coupa is a provider of enterprise-level cloud-based financial services that help companies manage their spending. Its current customer list includes Adidas (ADDYY - Free Report) , Dollar General (DG - Free Report) , Salesforce.com (CRM - Free Report) , and Toyota (TM - Free Report) . In its most recent round of funding, the company raised $80 million at a $1 billion valuation.
Coupa registered with the SEC in June under a federal law that allows companies with under $1 billion in revenue to file for an IPO confidentially. Renaissance estimates Coupa’s annual revenue to be about $47 million, and other reports suggest the company intends to raise $75 million during its IPO.
Bottom Line
For investors looking for stellar tech IPOs, this year has been pretty boring, with the exception of a few standouts. However, the above companies are in the IPO pipeline and could be making their market debuts soon. For more coverage on the state of the IPO market, check out our IPO Market Outlook for Second Half of 2016.
If you’d like to hear about which other companies Renaissance Capital thinks could be going public soon, check out this exclusive interview with the firm’s own Kathleen Smith from the Zacks Friday Finish Line team:
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>