Ping Identity Holding IPO: What You Need To Know

An identity management software provider is part of the IPO slate for the week. Can the company create an identity for itself among investors?

The IPO Terms

Denver, Colorado-based Ping Identity Holding Corp is planning to raise about $185 million through an IPO by offering 12.5 million shares at an estimated price range of $14-$15 per share, according to the S-1/A registration statement.

The company's shares have been approved for listing on the Nasdaq under the ticker symbol "PING."

Goldman Sachs, Bank of America Merrill Lynch, RBC Capital Markets and Citigroup are serving as lead managers for the offering, while Barclays, Credit Suisse, Deutsche Bank Securities and Wells Fargo Securities are acting as co-managers.

The Company

Ping is an identity management company, which enables secure access to any service, application or API from any device.

Its Intelligent Identity Platform leverages AI and machine learning to analyze device, network, application and user behavior data to make real-time authentication and security control decisions.

As of June 30, Ping's platform secured over 2 billion identities of its customer base spread globally.

Its dollar-based retention rate stood at 115% as of June 30, and customer base increased from 1,264 in 2017 to 1,284 in 2018. At the end of December 2018, Ping had 25 customers with over $1 million in ARR. Its customer base includes over 50% of the Fortune 100 companies.

The identity and access market is estimated to grow at a CAGR of 6% from $6.6 billion in 2018 to $9 billion in 2023, Ping said, citing estimates by IDC. The company estimates that its market opportunity is greater than $25 billion across its use cases.

The Finances

Ping's revenues climbed about 26% year-over-year to $184.99 million in fiscal year 2018, and for the six months ended June 30, revenues rose about 14% to $112.90 million.

The company reversed to a loss of $13.45 million in fiscal year 2018 from a profit of $18.96 million in 2017. The loss for the six months ended June 30 narrowed from $5.76 million to $3.12 million.

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