SailPoint IPO #2

SailPoint $SAIL had a successful IPO in 2017 and was acquired by Thoma Bravo in 2022 for $6.6B. Now, they are returning to public markets with an IPO that values the company at $11.5B. SAIL is scheduled to price Wednesday night and trade Thursday. The current range is $19-21 (Morgan Stanley, Goldman, JPM).

SailPoint is a category leader in identity security, benefiting from secular tailwinds such as Zero Trust security, cloud adoption, compliance mandates, and the rise of "agentic AI." During the Thoma Brava ownership period, the company transitioned to a SaaS model to enhance revenue visibility and improve its valuation. That is why they are proposing a 14x EV/sales valuation.

From a position standpoint, SailPoint is strongest in very large enterprises and high-compliance industries like financial services, healthcare, and government. They also still offer on-premise recurring licenses in addition to the cloud.

This is an excellent market with a TAM of over $20B and it can be argued that it's a multiple of that. SAIL has plenty of room to grow from their current $824M. The combination of increased regulatory and compliance pressure, increased use of AI, and continual rise in the number and seriousness of cyber threats make this category a constant priority.

One Genuine AI Angle

They don't play it up in the roadshow presentation, but a crucial element to the story relates directly to the next phase of AI growth.