TSP Weekly Tech Stock Update—Feb 22, 2025

This Week: SNOW/ESTC earnings previews, SAIL goes public again, Unity's new ad platform, Five9's AI story, Goldman bullish on DDOG, RBC likes MDB, AAPL debuts iPhone 16e, ZS billings in focus & more.

Hello from Rob…

—One to Watch: After being taken private in August 2022 by Thoma Bravo in an all-cash deal worth $6.9 billion, SailPoint (SAIL, $23.56)—a provider of identity security solutions for the enterprise—went public again this month following the company’s transition to a subscription model.

The offering was priced at $23 a share. On Tuesday, the stock traded to a high of $26.35 before pulling back late in the week with the rest of the tech sector. At recent prices, the market cap stands at $13.1 billion.

Subscription revenue now represents about 92% of SailPoint’s total revenue. As of October, the company’s total ARR was $813.2 million, up 30% year over year. SailPoint’s go-to-market motion is focused primarily on its SaaS solution. Total SaaS ARR of $485.7 million gained 40%.

The customer base totals 2,895. SailPoint competes with a variety of vendors—including Microsoft (MSFT), Oracle (ORCL), CyberArk (CYBR) and Okta (OKTA).

*Inside This Issue: Unity Shares Surge on Vector Launch

—Paid subscribers will receive the March 2025 PDF of Tech-Stock Prospector (TSP #277) via email on Tuesday, March 11.

—Paid subscribers have access to the TSP Market Overview and TSP Portfolio Updates sections inside this issue.