1 Firm That Could Be a Hot IPO Soon

Any company with a significant stake in AI is going to garner investors’ attention. The generative AI industry is projected to grow at a CAGR of 42% over the next 10 years to become a $1.3 trillion industry by 2033.

ThoughSpot has already proven to be a major player in that industry. Since the company’s inception in 2012, it has grown by leaps and bounds and drawn the attention of renowned venture capital as well as corporate investors. The most recent investment was in 2021 when Snowflake (NYSE:SNOW) invested $20 million in the business intelligence company.

The investments ignited ThoughtSpot’s revenue growth so by 2020 it was bringing in $100 million in recurring revenue. The 9-figure revenue stream enabled ThoughtSpot to make acquisitions of its own, including a recent $200 million deal to acquire Mode.

With all of the buzz around ThoughtSpot, investors have been eyeing a position in the growing company. But is Thoughtspot publicly traded?

Is ThoughtSpot a Public Company?

Though there’s been rampant speculation that the company will IPO in the latter part of 2023 or early 2024, there hasn’t been solid confirmation of that as of yet, so ThoughtSpot is not currently a public company.

It must be noted that there have been IPO discussions around ThoughtSpot going back to 2019. CEO Sudheesh Nair indicated a strong interest in going public at that time, feeling it was the best route for the company. Talks slowed down amid the upheaval and market volatility in 2020.

If the market can demonstrate some stability, it’s highly likely that ThoughtSpot will consider going public again. But at the moment, the business intelligence company is fully backed by venture capital.

What Is ThoughtSpot Worth?

ThoughtSpot is estimated to be have received total investment of $674 million, with the most recent rounds of funding taking place in 2021. Some of the most notable investors have been Capital One Ventures, Fidelity, Hewlett Packard Pathfinder, and a host of other big-name investment firms.

The venture capital investments and revenue from the company’s analytics platforms have brought the company to a current valuation of around $4.4 billion.

Even though the company has not conducted an IPO yet, it may be possible to get in on the ground floor through Pre-IPO investing. Pre-IPO investing is available in some instances to High Net-Worth Individuals (HNIs), generally those who have over $1 million in investable assets.

While there’s no guarantee that ThoughtSpot shares will be available through these marketplaces, if you fall into that category it may be worth seeking out. Another avenue may be to invest in a venture capital firm that owns shares in the company.

Is ThoughtSpot Profitable?

Because the company is still private, it hasn’t reported its quarterly financials as a publicly traded company would. What we know is that the company currently has around 250 customers. Some of those customers are major players like Walmart and Apple.

The company has also integrated its business intelligence platform with the major cloud-computing players, including Amazon’s AWS, Google Cloud, and Microsoft Azure. These partnerships have helped the company to achieve annual recurring revenue of $100 million.

While we don’t know the company’s expenses and can’t determine profitability at this point, there are still many positive indicators for ThoughtSpot. It wasn’t long ago that ThoughtSpot reported 108% year-over-year revenue growth.

If its customer base has continued to expand, as all signs would indicate, then the company could be on solid financial ground should it choose to IPO.

Is ThoughtSpot a Good Investment?

Once ThoughtSpot does take the steps to become publicly traded, will it be a good investment? While it’s generally a good rule of thumb to wait out the initial period after an IPO due to volatility, there is a compelling case for the company.

The significant amounts of capital that ThoughtSpot has acquired is a testament to the company’s BI platform, as is the large number of partnerships the company has built over a short time frame.

However, the main question is whether ThoughtSpot offers a service that can provide lasting value to its customers. The company commissioned research company Forrester to conduct a study on the effectiveness and economic impact of ThoughtSpot’s BI platform.

The study found that ThoughtSpot analytics delivered a 289% return on investment over 3 years. It also estimated that the analytics platform sped up business decision-making by 95% and reduced business intelligence reporting by 70%. That led to an estimated $500 million in cost savings for the company’s customers.

Due to the fast growth of the company, the healthy customer base, and a proven product in a growing field, ThoughtSpot should definitely be on investors’ watchlists if an IPO date is announced.

Who Owns ThoughtSpot?

The company was founded in 2012 by Ajeet Singh and six other co-founders who had worked in other Silicon Valley technology companies. It was started in Palo Alto, CA, but it’s currently headquartered in Mountain View, CA.

Through the rounds of venture capital investing, the ownership has been split among its initial investors. Despite the company’s success and even its recent acquisitions, there have been some discussions that ThoughtSpot could be a target for a takeover.

Some analysts speculated that Snowflake might be interested in acquiring the company due to the two companies’ strong partnership. There have also been rumors that one of the large cloud companies could be interested in purchasing ThoughtSpot.

At this point, it’s all still rumor though. The current consensus is that ThoughtSpot won’t be acquired and will continue to pursue an IPO.

When Will ThoughtSpot IPO?

ThoughtSpot is a business intelligence and analytics company that has been the target of much speculation over the years. The company has built an in-demand service in one of the fastest-growing industries in the world at the moment. That has drawn the attention of many retail investors hoping for a way to buy in.

But ThoughtSpot isn’t currently a public company. Recent IPO discussions in 2019 and 2020 were shelved due to heightened market volatility. As the market returned to bullish ways this year, rumors around a ThoughtSpot IPO have picked up steam.

Many believe the IPO will happen in early 2024. That should give investors the chance to take a position in a company that has enjoyed impressive growth and forged critical partnerships. Certainly, ThoughtSpot is a high potential target for investors who are looking for the next stock that could benefit from the AI boom.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.