Fast-growing human resources technology company Justworks updated its initial public offering (IPO) filing today, and the results have investors abuzz. Justworks is the latest IPO set to make waves this season amid a packed early-year roundup. From preliminary estimates, the JW stock IPO could be eyeing sky-high valuations.
So, what do you need to know about the latest Justworks IPO filing?
Justworks filed terms for a $214 million IPO, expected on Wednesday, Jan. 12. The company released promising financial statements detailing impressive growth to its topline revenue, gross profit and margins.
Additionally, Justworks markets itself as offering “simple software and expert support for payroll, benefits, HR, and compliance.” It’s a sort of one-stop-shop where small business owners can manage the myriad necessities inherent to the role. Accordingly, the company targets small businesses with less than 100 employees.
JW Stock IPO Releases Promising Numbers Ahead of Wednesday
Justworks plans to offer 7 million shares of Class A common stock at roughly $30.50 per share. Interestingly, no major shareholders currently plan on purchasing a stake in the company at the IPO price.
The New York-based company received a minimum of $176 million in equity investments thus far in its life. Justworks’ revenue is divided between its subscription service and “benefits and insurance-related revenue.” The subscription service charges clients for HR advising, employment and legal compliance services, as well as other organizational tools. Furthermore, JW allows businesses to choose whether they want to manage HR functions directly through the platform, or through a Professional Employer Organization (PEO).
As per Justworks, PEO can “bundle payroll, compliance, HR, and benefits under our umbrella, and help to administer employment-related responsibilities for you. Plus, with our group buying power, you get access to health insurance and other perks at more affordable rates. ”
Interest is indeed high in the HR company. However, whether the anticipation will manifest into a strong IPO remains to be seen.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guideline
