February 13, 2025 • 5 mins
SailPoint is guiding prospective investors that its initial public offering has received orders for more than 20 times the shares available, according to people familiar with the matter. The IPO for the Thoma Bravo-backed security software company is poised to price at the top or above its revised price range, the people said, asking not to be identified as the information isn’t public. He spoke about this and more with hosts Alix Steel and Norah Mulinda.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:07):
We're lucky that we have the CEO of sale Point
Technologies with us, Mark mclin. He joins us. Now, how
does this IPO mesh with your long term vision for
the company?
Speaker 1 (00:18):
Well, I think in general, we've tried to stay focused
as a business on building great business with our customers
and winning in the market. In some ways, what happens
in the financial ownership of the business matters a lot,
but it doesn't actually affect our day to day lives,
if you will, and finding and securing customers and making
them successful, that's certainly always our focus. We do think though,
that the IPO gets us back out in the public
eye a little more. The importance of what we do
(00:41):
and what's called identity security is raising an awareness and
importance to the large companies all around the world that
we typically serve, and this will help with our visibility.
It'll give us future fuel to grow the business. We've
had a great run as a private company with Telebravo.
Some folks know this. We were public before and before
we were owned by Toma Bravo. It's a little bit
(01:01):
of an interesting story of a PE backed IPO same
Pe backed IPO again. But all the while, our focus
continues to be on doing great things for our customers
and helping them secure their enterprises with identity.
Speaker 3 (01:14):
Well, cyber threats have continued to increase. How does sale
Points stay ahead in identity security?
Speaker 1 (01:20):
Yeah, what's happened in the world of cybersecurity. There's a
lot of shifting things in the landscape. A simple metaphor
that sometimes helps folks is that the bad actors are
the attackers. Not so long ago, their metaphor was to
break the glass and grab the jewels and run. Quite
often now, and we've seen this in breach reports, they'll
try to sneak in the back of the jewelry store,
poses an employee and eventually try to quote clean out
(01:40):
the jewelry store. And that's because they've been able to impersonate,
so to speak, an employee, and that's a compromised identity.
What we do is help businesses, typically mid to large
enterprises around the world, focus on understanding all the identities
they have, both human and nonhuman, all the data they
care about protecting, and making sure that at any point
in time, all of those connections are secure. It's a
(02:01):
pretty complex problem. At scale.
Speaker 2 (02:04):
Who are your competitors right now and how can you
help differentiate?
Speaker 1 (02:07):
Yeah, the truth is we've got more I like to
call them PowerPoint competitors than real competitors. I mean, there's
folks that are talking about this space quite a bit,
but if you look at what happens day to day
when we're out in the market, there's very few companies
that are capable of delivering the success at scale that
we have. We're fortunate to be in almost half of
the Fortune five hundred, about a quarter of the Fortune
two thousand, and they're generally throwing out older legacy products
(02:31):
like from Oracle and IBM. There really hasn't been a
strong challenger to us in this key space, and that's
part of what I think has gotten investors excited about
our potential for long term, durable growth.
Speaker 3 (02:42):
So another thing that's been in conversation, I'm curious, how
are you all planning to address your debt load?
Speaker 1 (02:48):
Well, you know, one of the key use of proceeds
will be to pay down a lot of the debt.
We actually had a little more debt about six months ago.
Our backers Home of Bravo chose to take some of
that debt out with equity before the IPO, and we'll
use the bulk of the proceeds from the IPO to
pay down significantly, putting ourselves in what they call it
debt zero, meaning we'll have as as much more cash
as we have debt, which from a financial profile standpoint
(03:10):
makes investors really happy.
Speaker 2 (03:12):
Why do you guys decide to do the IPO? Now?
We were just talking about IPOs in general, and I
was talking about an LNG export that went public at
seemingly a great time and it didn't go so well.
So I wonder why strategically you guys chose right now.
Speaker 1 (03:27):
Well, we've been watching markets as everyone has, and I
think we were really pleased with the progress of the business.
We went private about two and a half years ago.
As part of our S one filing, we talked about
the fact that as of our third quarter last year,
we'd grown the business at thirty percent. We've been able
to deliver non gap margins of about fourteen percent, and
had a strong sense that durable growth would continue, and
that was at scale. We're over an eight hundred million
(03:48):
dollar revenue business now and investors don't see a lot
of profiles of growth at scale with profit, and I
think our sense was that the markets were kind of hungry,
so to speak, for new issuances, particularly I think in
technology security has been considered a really good market for
a long time. I think we looked like a company
that would fit many of their requests, so to speak,
(04:08):
for a durable growth company in the security space.
Speaker 3 (04:11):
How are regulatory shifts driving demand for identity security solutions
as enterprises continue shifting to the cloud. How is sale
point evolving its offerings?
Speaker 1 (04:21):
Well, it's interesting you mentioned that regulatory is indeed part
of the landscape we're addressing. Sometimes, you know, audits or
the threat of failed audits or not being able to
comply with regulations is a driver. But increasingly our space
is less about that. Not it hasn't moved away from that,
but it's less about that than truly securing their data. Again,
what's happened is this concern that data can be compromised
(04:42):
through this lens of identity. If a bad actor can
somehow you know, get in, break in, steal an identity,
or in some way get access to data through those identities,
they can do a lot of damage. So that that
focus on truly protecting the data is really more of
an issue today than just regulatory compliance.
Speaker 2 (05:00):
You go, what's it like attracting talent right now in
the market.
Speaker 1 (05:05):
Well, I'd say attracting talent is never easy in a
very competitive technology market. I think we're very fortunate at
sale Point. One of the things that we pay a
lot of attention to is our culture and our values
and how that shows up. And as you probably familiar,
a glass Door runs around and surveys the world and
tries to understand how companies are doing. We're super pleased
they released those results recently. We were number seventeen in
(05:26):
the world, and if you want to cut it by
an interesting factor, we were the highest ranked tech company
with under five thousand employees on Glassdoor. I think that
speaks a lot about the kind of culture and the
values that we live out in our company. It attracts
and retains very good talent, and we're very fortunate.
Speaker 2 (05:42):
Hey, Mark, we appreciate your time today. We look forward
to catching up with you again once you've had some
time to be public. Mark mclains, CEO of sale Point Technologies,
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:07):
We're lucky that we have the CEO of sale Point
Technologies with us, Mark mclin. He joins us. Now, how
does this IPO mesh with your long term vision for
the company?
Speaker 1 (00:18):
Well, I think in general, we've tried to stay focused
as a business on building great business with our customers
and winning in the market. In some ways, what happens
in the financial ownership of the business matters a lot,
but it doesn't actually affect our day to day lives,
if you will, and finding and securing customers and making
them successful, that's certainly always our focus. We do think though,
that the IPO gets us back out in the public
eye a little more. The importance of what we do
(00:41):
and what's called identity security is raising an awareness and
importance to the large companies all around the world that
we typically serve, and this will help with our visibility.
It'll give us future fuel to grow the business. We've
had a great run as a private company with Telebravo.
Some folks know this. We were public before and before
we were owned by Toma Bravo. It's a little bit
(01:01):
of an interesting story of a PE backed IPO same
Pe backed IPO again. But all the while, our focus
continues to be on doing great things for our customers
and helping them secure their enterprises with identity.
Speaker 3 (01:14):
Well, cyber threats have continued to increase. How does sale
Points stay ahead in identity security?
Speaker 1 (01:20):
Yeah, what's happened in the world of cybersecurity. There's a
lot of shifting things in the landscape. A simple metaphor
that sometimes helps folks is that the bad actors are
the attackers. Not so long ago, their metaphor was to
break the glass and grab the jewels and run. Quite
often now, and we've seen this in breach reports, they'll
try to sneak in the back of the jewelry store,
poses an employee and eventually try to quote clean out
(01:40):
the jewelry store. And that's because they've been able to impersonate,
so to speak, an employee, and that's a compromised identity.
What we do is help businesses, typically mid to large
enterprises around the world, focus on understanding all the identities
they have, both human and nonhuman, all the data they
care about protecting, and making sure that at any point
in time, all of those connections are secure. It's a
(02:01):
pretty complex problem. At scale.
Speaker 2 (02:04):
Who are your competitors right now and how can you
help differentiate?
Speaker 1 (02:07):
Yeah, the truth is we've got more I like to
call them PowerPoint competitors than real competitors. I mean, there's
folks that are talking about this space quite a bit,
but if you look at what happens day to day
when we're out in the market, there's very few companies
that are capable of delivering the success at scale that
we have. We're fortunate to be in almost half of
the Fortune five hundred, about a quarter of the Fortune
two thousand, and they're generally throwing out older legacy products
(02:31):
like from Oracle and IBM. There really hasn't been a
strong challenger to us in this key space, and that's
part of what I think has gotten investors excited about
our potential for long term, durable growth.
Speaker 3 (02:42):
So another thing that's been in conversation, I'm curious, how
are you all planning to address your debt load?
Speaker 1 (02:48):
Well, you know, one of the key use of proceeds
will be to pay down a lot of the debt.
We actually had a little more debt about six months ago.
Our backers Home of Bravo chose to take some of
that debt out with equity before the IPO, and we'll
use the bulk of the proceeds from the IPO to
pay down significantly, putting ourselves in what they call it
debt zero, meaning we'll have as as much more cash
as we have debt, which from a financial profile standpoint
(03:10):
makes investors really happy.
Speaker 2 (03:12):
Why do you guys decide to do the IPO? Now?
We were just talking about IPOs in general, and I
was talking about an LNG export that went public at
seemingly a great time and it didn't go so well.
So I wonder why strategically you guys chose right now.
Speaker 1 (03:27):
Well, we've been watching markets as everyone has, and I
think we were really pleased with the progress of the business.
We went private about two and a half years ago.
As part of our S one filing, we talked about
the fact that as of our third quarter last year,
we'd grown the business at thirty percent. We've been able
to deliver non gap margins of about fourteen percent, and
had a strong sense that durable growth would continue, and
that was at scale. We're over an eight hundred million
(03:48):
dollar revenue business now and investors don't see a lot
of profiles of growth at scale with profit, and I
think our sense was that the markets were kind of hungry,
so to speak, for new issuances, particularly I think in
technology security has been considered a really good market for
a long time. I think we looked like a company
that would fit many of their requests, so to speak,
(04:08):
for a durable growth company in the security space.
Speaker 3 (04:11):
How are regulatory shifts driving demand for identity security solutions
as enterprises continue shifting to the cloud. How is sale
point evolving its offerings?
Speaker 1 (04:21):
Well, it's interesting you mentioned that regulatory is indeed part
of the landscape we're addressing. Sometimes, you know, audits or
the threat of failed audits or not being able to
comply with regulations is a driver. But increasingly our space
is less about that. Not it hasn't moved away from that,
but it's less about that than truly securing their data. Again,
what's happened is this concern that data can be compromised
(04:42):
through this lens of identity. If a bad actor can
somehow you know, get in, break in, steal an identity,
or in some way get access to data through those identities,
they can do a lot of damage. So that that
focus on truly protecting the data is really more of
an issue today than just regulatory compliance.
Speaker 2 (05:00):
You go, what's it like attracting talent right now in
the market.
Speaker 1 (05:05):
Well, I'd say attracting talent is never easy in a
very competitive technology market. I think we're very fortunate at
sale Point. One of the things that we pay a
lot of attention to is our culture and our values
and how that shows up. And as you probably familiar,
a glass Door runs around and surveys the world and
tries to understand how companies are doing. We're super pleased
they released those results recently. We were number seventeen in
(05:26):
the world, and if you want to cut it by
an interesting factor, we were the highest ranked tech company
with under five thousand employees on Glassdoor. I think that
speaks a lot about the kind of culture and the
values that we live out in our company. It attracts
and retains very good talent, and we're very fortunate.
Speaker 2 (05:42):
Hey, Mark, we appreciate your time today. We look forward
to catching up with you again once you've had some
time to be public. Mark mclains, CEO of sale Point Technologies,
Popular Podcasts
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Therapy Gecko
An unlicensed lizard psychologist travels the universe talking to strangers about absolutely nothing. TO CALL THE GECKO: follow me on https://www.twitch.tv/lyleforever to get a notification for when I am taking calls. I am usually live Mondays, Wednesdays, and Fridays but lately a lot of other times too. I am a gecko.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.