Netskope’s Nasdaq Debut: Market Cap Soars to $8.6 Billion Amid AI Push
On Wednesday, Netskope sold shares at $19, the upper end of its recently raised pricing range, and the stock began trading at $23 under the ticker code “NTSK.” The deal brought in more than $908 million. In this regard, on Thursday, Netskope started trading on the Nasdaq for the first time, recording a gain of more than 18%. The market capitalization of the cybersecurity company increased to $8.6 billion as a result.
In an interview with CNBC prior to the initial trade, CEO and co-founder Sanjay Beri stated that the offering was oversubscribed by more than 20 times. Netskope wants to assist businesses in using artificial intelligence tools while protecting their data.
The world is moving to AI and cloud. That requires a redefinition of the biggest market in security, data network security. That’s what we are.
Beri
Netskope’s Growth Playbook: Selective Acquisitions and Tech Partnerships
The company doesn’t usually pursue larger acquisitions based on yearly recurring revenue, Beri said on CNBC. He stated that larger agreements are still possible and that Netskope usually targets particular teams and technologies. Palo Alto Networks, Broadcom, and Cisco are among the company’s most formidable competitors in the competitive market. However, Beri stated that becoming a one-stop cybersecurity store is not his aim.
I’m not a believer that in security and networking, people want one platform. People need to play well with each other in the industry and integrate for the best of the customer.
Beri
Despite Net Loss, Netskope Reports $700M in Annual Recurring Revenue
Profitability has not yet been attained by Netskope, which filed for its IPO last month. The corporation recorded a net loss of $170 million for the six months ending in July, with revenues totaling $328 million. The company intends to achieve positive free cash flow this year, Beri told CNBC. At the end of July, annual recurring revenues exceeded $700 million.
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