Datadog is joining the pack of tech IPOs. The cloud application monitoring service on Friday filed a prospectus with the Securities and Exchange Commission that showed the company doubled its revenue last year.
Cloud monitoring,which evaluates cloud-based applications, has attracted billion-dollar exits of late. Direct competitor SignalFx said Wednesday it was acquired by Splunk, which makes software for monitoring big data, for $1.05 billion. Stock in its fellow cloud monitoring service Dynatrace surged 49% in its first day of trading in August. Shares of cloud companies Slack, Zoom and PagerDuty have all rallied in their IPO debuts this year.
Datadog, founded by Olivier Pomel in 2010, had raised $147.9 million in equity from investors ICONIQ Capital and Index Ventures, among others, with a valuation of $640 million. The company ranked #19 on Forbes Cloud 100 2018 list. The price of the company’s stock, which will trade under the ticker symbol DOOG, has not yet been determined.
The New York-based company’s revenue rose roughly 50% last year to $200 million in 2018 on $11 million profit loss. According to Gartner, the cloud monitoring market will be worth $37 billion by 2023, creating an opportunity for many more entrants, but there are no worries of over saturation.
“Companies across all industries are re-platforming their businesses to cloud infrastructures,” the SEC filing reads. “We believe that we are currently underpenetrated in our existing customer base.”
The company, which had previously disclosed plans to go public, said JP Morgan Chase, Goldman Sachs and Credit Suisse will underwrite the IPO.