In the past years, there had been more tech IPOs than 2019, but there is never been a year that has fabricated so many big ones. Following Datadog’s first-day sparking, the provider of monitoring and analytics tools became the fourth cloud software firm to go public in 2019 and obtain a market capitalization of up to $10 Billion. Videoconferencing firm Zoom, cybersecurity provider Crowdstrike, and chat app Slack are the other three. The new listing brings to 16 the total number of cloud software firms in the 11-digit club. Whilst 14 of those firms have gone public from the starting of 2012, this is the first year with at least two that attained $10 Billion in worth. It is just the new indications that public market financiers are willing to pay more for high-growth technology firms while the financials make sense, even as they shirk cash-burning customer businesses such as Lyft, Uber, and WeWork.
Jason Lemkin—Investor at SaaStr—sees the cloud market incessantly opening up to more domains, developing the overall pie. As per to Gartner, the international market for public cloud services would surge by 17.5% in this year to reach $214.3 Billion. That money is being broadened across several areas, counting developer tools, productivity apps, backend infrastructure, and security.
Similarly, Datadog was in the news as its stock surged by 39%. In recent time, the shares of New York-based Datadog climbed by 39% to settle at $37.55 following opening at $40.35 in the cloud firm’s market debut. The unbeaten IPO (initial public offering) cements Datadog’s place as an East Coast counterbalance to Silicon Valley’s supremacy of the enterprise software realm. After the market closed, CEO Olivier Pomel said to Forbes, “Initially when we began fundraising for Datadog, it was actually not that easy, so it was tough to get trust from financiers on the West Coast.”