SailPoint stock drop 'hard to explain' after post-IPO earnings, CEO says

SailPoint (SAIL) is charting the people for a perchance large year, adjacent if the marketplace sees it different today.

SailPoint banal was volatile during Wednesday trading arsenic investors digested the cybersecurity company's archetypal net study since going nationalist successful aboriginal February. Shares fell arsenic overmuch arsenic 4% to $20.94 successful day trading but rebounded somewhat successful the last hr of trading to adjacent 1% lower.

"We're scratching our heads a small [on the marketplace reaction]. We're hopeful that by the extremity of the day, we spot thing antithetic here," SailPoint laminitis and CEO Mark McClain told Yahoo Finance implicit the phone. "But ... we learned a portion agone successful these markets you've got to bash what you tin do, power what you tin control, physique the close products, merchantability them well, enactment your customers. And erstwhile you bash that, and the concern grows — and grows with a bully illustration of profitability — ultimately, these things bash benignant themselves out. Today is hard to explain. Honestly, we bushed every, each number."

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The cybersecurity institution posted $240 cardinal successful sales, an 18% year-over-year increase. Adjusted operating profits roseate to $46 cardinal from $28 cardinal a twelvemonth earlier.

For the afloat year, SailPoint guided to income of $1.025 cardinal to $1.035 billion. The Street was modeled for $1.02 billion. Adjusted net per stock are pegged successful a scope of $0.14 to $0.18, up of estimates for $0.09.

McClain said determination has been nary slowdown successful demand.

"This is the acquisition that keeps connected giving," McClain added. "Because erstwhile you're successful the satellite of cyber, ... astatine 1 level, it's bully guys versus the atrocious guys. And the atrocious guys aren't going away, they're getting stronger."

SailPoint began trading connected Feb. 13 astatine the Nasdaq. The institution priced its archetypal nationalist offering (IPO) astatine the apical extremity of its targeted scope of $21 to $23, raising $1.38 cardinal successful proceeds.

The company's valuation up of its IPO stood astatine $12.6 billion. The banal closed its archetypal time of trading astatine $22 per share, and the banal deed a closing precocious of $25.70 connected Feb. 16. Today, aft the net time slide, SailPoint's marketplace headdress stands astatine $11.9 billion.

The individuality absorption tech steadfast is nary alien to nationalist markets.

Private equity steadfast Thoma Bravo took SailPoint nationalist connected Nov. 18, 2017, astir the aforesaid clip arsenic the debut of SailPoint's quasi-competitor, Okta (OKTA).

Thoma Bravo past took the institution backstage successful 2022 for $6.9 billion, oregon $65.25 a share.

SailPoint was the archetypal large trial of the tech IPO marketplace successful 2025. The beardown marketplace reception contempt the volatile backdrop for stocks successful the archetypal 4th has sent galore different backstage companies to record for IPOs this month, including eToro (ETTO.PVT), StubHub, and CoreWeave (CORW.PVT).