A looming IPO for PagerDuty, the maker of an incident response platform and other cloud-based IT software, might not come with quite as much pizzazz as last month’s listing for Lyft. But in addition to their unicorn status, the two companies have at least one other thing in common.
Just like Lyft, PagerDuty has increased the expected price range for its offering after first indicating a lower figure, likely indicating solid demand for the company’s stock as it shops itself to potential investors. After first filing plans to sell its shares for between $19 and $21 each, PagerDuty has raised that range to $21 to $23 per share; the software provider still plans to offer just shy of 9.1 million shares in the flotation, meaning a midpoint pricing would raise about $200 million. It’s believed a top-end pricing could result in a valuation of more than $1.7 billion.
Since first raising seed funding in 2010, the San Francisco-based PagerDuty has banked more than $170 million in venture backing, including a $90 million Series D at a $1.3 billion valuation last September that marked its first foray into unicorn territory.
The business is part of what’s shaping up to be a very lucrative year for Andreessen Horowitz, which owns stakes in several unicorns that could soon go public; in PagerDuty’s case, the firm has an 18.4% holding, making it the company’s largest shareholder. Accel (12.3% pre-IPO stake) and Bessemer Venture Partners (12.2%) are among PagerDuty’s other big-name backers. None of the three firms plan on selling any of their shares in the listing, per an SEC filing.
Andreessen Horowitz was also a significant investor in Lyft. After the ridehailing company first listed a range of $62 to $68 per share for its IPO last month, it later raised that span to $70 to $72, ultimately pricing at $72. That valued a16z’s holding of about 15 million shares at more than $1 billion.
PagerDuty’s listing likely won’t be quite so profitable, but it will certainly be significant. A midpoint pricing of $22 per share would value a16z’s post-IPO stake in the company at more than $260 million.
Not too bad for a business that—again, like Lyft—is losing money. While PagerDuty logged $117.8 million in revenue last year, representing YoY growth of 48%, the company also registered a net loss of $40.7 million. That’s about in line with the company’s previous fiscal year, when it logged a loss of $38.1 million.
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Related read: In Lyft IPO, a16z to make a killing
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