IPO Outlook for Enterprise Software

I’m an index-fund kind of person. Perhaps to my detriment, rather than utilize my research here for the Daily Stack alongside my access into private company revenues, I still maintain a retirement investment portfolio that is general, rather than specific. Individual stock-picking (which I’ve done for a whopping total of 5 companies) has proven to be a volatile experiment, yielding little in returns or confidence. My interest was piqued however when I came across the topic of well-performing enterprise software companies and anticipated public offerings in a recent article from The Information.

      
 

The article highlights the poor performance of last year's tech companies, down 21% overall, as compared to the recent debuts of enterprise software companies, trading on average 12% higher than their public debuts. According to equity analyst Keith Weiss of Morgan Stanley, the revelation is that these well-performing companies have what the others didn’t: cloud-based technology and pricing models that work for their customers. Confluent, which is up 86% since its debut, allows customers to pay for only what they need and offers subscription model pricing.

Enterprise software companies eyeing a public offering in 2022 include employee benefits and HR platform Gusto and data analytics platform Databricks. For more private enterprise startups, check out our Top 50 Enterprise Startups report or search the keyword on our database.