Go public now while software valuations make no sense – ProWellTech

Go public now while software valuations make no sense – ProWellTech

BigCommerce and the great WTF of today’s market prices

Software the ratings are staggering, which means it’s a great time to make it public. Asana, Monday.com, Wrike and any other damned software company that is postponing it, pay attention. Heck, even the Palantir service-y could excel in this market.

Let me explain.

In recent weeks, ProWellTech has monitored archiving, early pricing, readjusted price ranges and, today, the first trading day for BigCommerce, a Texas-based e-commerce company. You can consider it as a comp with Shopify to some extent.

Image Credits: IMGFlip (Opens in a new window)

In the wake of the Canadian profit success report, BigCommerce has increased its range of IPOs. Yesterday the company performed better, with a price of $ 1 per share above the increased range, selling 9,019,565 shares at $ 24 per share, including 6,850,000 from BigCommerce. Yes.

Before some additions, there are now 65,843,546 BigCommerce shares in the world, giving the company an IPO valuation of about $ 1.58 billion.

Given that the range of revenue expected for the company’s second quarter is “between $ 35.5 million and $ 35.8 million”, the company has shown a multiple of installments from 11.1x to 11x, depending on where the final revenue count. smidgen light.

So the company opened today at $ 68 per share, currently trading for $ 82 per share. Hi, 1999 and other crazy times. BigCommerce is now worth the effort, using a few rough math, around $ 5.4 billion, giving it a run rate multiple of around 38x, using the midpoint of its second quarter revenue range.

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