SailPoint invests $600 million ARR annually in private property

With IPOs back and TechCrunch+’s eyes open to new S-1 filings and early indications of just how much public market demand there is for upcoming debuts, we’d be wrong to forget the companies that have taken the opposite path in recent years.

A good example is SailPoint, a cybersecurity and identity management company that was taken private by Thoma Bravo in April 2022. The deal closed in mid-August of the same year.

The final earnings report disclosed by SailPoint before its privatization detailed its second quarter 2022 results, including revenue of $134.3 million (+31% year-over-year), recurring revenue (ARR) of $429.5 million (+47% year over year). -year), and a net loss of $29.4 million, up from a net loss of $16.7 million in the prior year quarter. On an adjusted basis, the company’s net loss was well under $2.2 million.

In the year since we last looked at the company, SailPoint told TechCrunch+ that it passed the $600 million ARR milestone in Q3 2023; the company sees its ARR increase by more than 50% year over year.

On the one-year anniversary of this deal, TechCrunch+ spoke with founder and CEO Mark McClain; Matt Mills, its president of global field operations; and Andrew Almeida of Thoma Bravo, to understand a little about how things have been going since the purchase of SailPoint.

Since the deal to take SailPoint private was announced, tech valuations have softened. Double-digit revenue multiples for software companies are now rare, and no longer the norm. For SailPoint, which sold for $6.9 billion, its current value is an interesting question if it intends to relist it in the future. We also wanted to know how the company had performed since its privatization, what it hoped to unlock by taking a break from public procurement and whether Thoma Bravo was hoping for an exit.

This interview has been edited for length and clarity.

TC: Privatized companies often tout their ability to move away from the quarterly earnings cycle and invest over a longer period. What made it possible for SailPoint to go private?

Mark McClain: We saw many exciting market opportunities ahead of us. Since the market hadn’t completely calmed down yet when we started talking [with Thoma Bravo]I think we thought we would probably do some more aggressive and larger scale M&A type deals.