Ping Identity: Another Red-Hot IPO

By Chris Lange Updated Jan 6, 2:21AM EST · Published Sep 19, 1:25PM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Ping Identity: Another Red-Hot IPO — © Thinkstock

Ping Identity Holding Corp. (NYSE: PING) was another IPO that had an incredible Thursday. Shares entered the market at $18.75, well above the $15 pricing. The company originally announced that it would price its 12.5 million shares in the range of $14 to $16 apiece, with an overallotment option for an additional 1.875 million shares. At the $15 price, the entire offering is valued up to $215.63 million.

The underwriters for the offering are Goldman Sachs, Merrill Lynch, RBC Capital Markets, Citigroup, Barclays, Credit Suisse, Deutsche Bank, Wells Fargo, Raymond James, Stifel, William Blair, Mizuho and Oppenheimer.

Ping enables secure access to any service, application or API from any device. Its Intelligent Identity Platform can leverage artificial intelligence and machine learning to analyze device, network, application and user behavior data to make real-time authentication and security control decisions, enhancing the user experience.

The platform is designed to detect anomalies and automatically insert additional security measures, such as multifactor authentication, only when necessary. It can be deployed across cloud, hybrid and on-premise infrastructures, offers a comprehensive suite of turnkey integrations and is able to scale to millions of identities and thousands of cloud and on-premise applications in a single deployment. As of June 30, 2019, the platform secured over 2 billion identities globally across its customer base.

The firm detailed its finances in the filing as follows:

Our ARR [annual recurring revenue] was $147.0 million and $183.6 million at December 31, 2017 and 2018, respectively, representing year-over-year growth of 25%. Our ARR was $159.6 million and $198.0 million at June 30, 2018 and 2019, respectively, representing period-over-period growth of 24%. We have grown revenue from $172.5 million for the year ended December 31, 2017 to $201.6 million for the year ended December 31, 2018, representing year-over-year growth of 17%. We have grown revenue from $99.5 million for the six months ended June 30, 2018 to $112.9 million for the six months ended June 30, 2019, representing period-over-period growth of 14%. Our net income was $19.0 million for the year ended December 31, 2017. Our net loss was $13.4 million for the year ended December 31, 2018. We had net losses of $5.8 million and $3.1 million for the six months ended June 30, 2018 and 2019, respectively.

[nativounit]

Ping intends to use the net proceeds from this offering to pay down debt, as well as for working capital and general corporate purposes.

Shares of Ping were last seen up about 27% at $19.00, in a range of $18.25 to $19.74 on the day thus far. As of 1:15 p.m. Eastern, about 8 million shares had moved.

[recirclink id=578589]
[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.