The cloud application monitoring service, Datadog will be joining the pack of tech IPOs. The company has shown that it has doubled its revenue last year by filing a prospectus with the Security and Exchange Commission.
The New York based company has hired banks such as Morgan Stanley, Goldman Sachs Group Inc, JPMorgan Chase & Co and Credit Suisse Group AG as the lead underwriting banks for the IPO which could come later this year, sources said.
The IPO would be the latest in a string of listings in 2019 by software-as-a-service (SaaS) companies, like Zoom Video Communications and Slack Technologies. Theselistings have been performed well after going public and have benefited from the expansion of cloud computing.
Cometiting company SignalFX was acquired by splunk on Wednesday, making software for monitoring big data for $1.05 billion. Stock in DynaTrace surged 49% in August in the first day of trading.
Founder of Datadog, Olivier Pomel, has raised $147.9 million from investors like ICONIQ Capital and Index Ventures, in equity, among others, valued at $640 million. On Forbes Cloud 100 2018 list, the company was ranked #19.
The company has risen roughly 50% last year to $200 million in 2018 on $11 million profit loss. By 2023, the cloud monitoring service will be worth $37 billion, which will create opportunities for many more entrants. Currently there are no worries of over saturation.