PagerDuty (PD) began trading on the NYSE on Thur 11 Apr 2019

PagerDuty offers a subscription service that allows businesses to improve the constant interplay between software developers and operators—so-called DevOps—within their organization and lets them use real-time data to address incidents that occur. Competitors include Atlassian Corp.’s (TEAM) OpsGenie and Splunk Inc.’s (SPLK) VictorOps products.

• The cloud-based digital management platform priced 9.1 mln share IPO at $24.00 per share, above the revised expected range of $21-23
• Shares of PagerDuty  surged more than 59% to close at $38.25 Thursday, giving the company a valuation of $2.82 billion, according to FactSet data. 
• PagerDuty was founded in 2009 by three former Amazon developers. In 2016, the company hired industry veteran Jennifer Tejada as its CEO. She owns about 6 percent of the company. The biggest investors are Andreessen Horowitz at 18 percent before the offering, followed by Accel at 12 percent.
• The so-called DevOps market is expected to reach $10.3 billion a year by 2023, up from $3.4 billion last year, according to research from MarketsandMarkets. Ethan Kurzweil, a partner at Bessemer Venture Partners, one of PagerDuty’s biggest investors, said that these sorts of developer tools are gaining importance as software becomes central to the way more companies do business.

Chief Executive and Chairwoman Jennifer Tejada, who owns a 5.7% stake in the company following the offering, said PagerDuty is looking to serve an estimated $25 billion market made up of about 22 million software developers whose job it is to make sure that every app on our phone or program on our PC is working the way it’s supposed to and cut down on downtime. Tejada said in a telephone interview with MarketWatch from the New York Stock Exchange that about 300,000 developers currently use the platform.

PagerDuty CEO Jennifer Tejada

PagerDuty, whose software helps technical teams quickly spot problems with applications and respond to incidents such as customer complaints, is used by developers at over 11,000 companies, including Slack, Box, Gap and Netflix. 

PagerDuty recorded a loss of $40.7 million on revenue of $117.8 million in the fiscal year ended Jan. 31, 2019, after a loss of $38.1 million on revenue of $79.6 million in the same period a year ago. The number of customers paying $100,000 or more a year for the service rose to 228 from 144 in the previous year.

PagerDuty planned to sell 8.5 million shares in the IPO, while selling stockholders offered 570,000 shares. Underwriters were offered options for an additional 1.36 million shares.

Papa Murphy's to be acquired by MTY Food Group for $6.45/share

• 2014 IPO

 

MTY Food Group

Papa Murphy's to be acquired by Canadian company MTY Food Group for $6.45/share in cash, or approximately $190 mln

Papa Murphy's is a franchisor and operator of the largest Take ‘n’ Bake pizza brand and the 5th largest pizza chain in the United States, selling fresh, hand-crafted pizzas ready for customers to bake at home. In addition to scratch-made pizzas, Papa Murphy’s offers a growing menu of grab 'n' go items, including salads, sides and desserts. Papa Murphy’s was founded in 1981 and operated 1,331 franchised and 106 corporate-owned stores in 37 U.S. states, Canada and the United Arab Emirates as of December 31, 2018.

** charts before announcement **

 

Tufin (TUFN) prices IPO at $14 a share

Israeli cybersecurity company Tufin Software Technologies Ltd. priced shares at $14 in its initial public offering Wednesday evening, setting up the Israeli cybersecurity company for a Thursday trading debut. Tufin announced that it will sell 7.7 million shares at the top of its proposed IPO range, to bring in at least $107.8 million at an initial valuation of about $454 million. Tufin, which sells software focused on security policy and implementation, reported a loss of $4.3 million on revenue of $85 million last year, when sales grew more than 30%, according to filings with the Securities and Exchange Commission. Underwriters, led by JP Morgan, Barclays and Jefferies, have access to an additional 1.16 million shares if needed. Shares are expected to begin trading on the New York Stock Exchange on Thursday morning under the ticker symbol TUFN.

Tufin helps security managers automate changes to their networks while maintaining compliance with industry regulations and without introducing vulnerabilities. The company claims 2,000 enterprise customers in over 70 countries and it was co-founded by Kitov in 2005.

The company opened an office near Post Office Square in Boston in 2017. At that time, Kitov relocated to Boston from Israel and joined a team of 20 employees. In Boston, Tufin currently has a portion of the marketing and general administrative teams, as noted in the regulatory filing. The company, which also leases an office in Akron, Ohio, had a total of 119 employees in the U.S. as of December last year.

Tufin has raised a total of $30 million, according to Crunchbase. The company posted revenues of $64.5 million in 2017 and $85 million in 2018. In those years, Tufin also reported a net loss of $2.8 million and $4.3 million, respectively. In the filing, Tufin noted that its accumulated deficit as of December was $40.3 million.

In its upcoming IPO, Tufin is represented by White & Case. The company’s principal executive office is located in Ramat-Gan, a city with around 160,000 residents just east of Tel-Aviv, Israel.