The Zscaler IPO launched Friday, with the company’s valuation now at above $1 billion.
The company essentially serves a cloud security software provider that offers IT departments the change to monitor all the traffic on their corporate network and protect it. Here are five thing to know about the offering:
- CEO Jay Chaudhry created Zscaler with is life savings with the intent of offering a new way for companies implementing cloud technologies to protect themselves. “We make sure that nothing bad comes in [and] nothing good and confidential leaks out,” he said.
- The company was valued at more than $1 billion following its last round of private funding, with its valuation at more than $1.5 billion at its IPO. Zscaler was going to sell 10 million shares for $10 to $12 at first, but that number rose to $13 to $15 closer to the offering.
- The cloud services provider saw its sales grow from $53.7 million to $80.3 million to $125.7 million during its last three full fiscal years. In its first six months of the first fiscal year, the company has raked in $84.3 million in revenue already.
- Chaudrhy hopes that the Zscaler IPO will help the company become profitable as its had net losses of $12.8 million, $27.4 million and $35.5 million during the same three years. In the first six months of the current fiscal year, the company has lost $17.9 million.
- More than half of the company’s business comes from outside the U.S., specifically from Europe, the Middle East and Africa.