So we’ve just had 2 more B2B IPOs that aren’t 100% “traditional” SaaS per se, but still great B2B software leaders to learn from: MNTN and Hinge Health.
- MNTN is a performance TV software company focused on providing performance advertising services for Connected TV.
- Hinge Health uses software to help patients treat acute musculoskeletal injuries, chronic pain and carry out post-surgery rehabilitation remotel.
Hinge Health IPO’d at $500m in ARR, MNTN IPO’d at $260m ARR. Both big revenues, but somewhat smaller than the last group of Rubrik + Klaviyo that were bigger.
Importantly, though, both are growing at ~50% YoY.
That’s the big take-away. The unicorns at $100m+ ARR but only growing 15-30%? It’s not clear they can IPO successfully today.
But 50% growth at $200m+ ARR remains the bar for a successful B2B IPO.
Somewhat smaller IPOs are possible and the market is good with them. If … if … you have the growth.
Revenue at IPO:
- Klaviyo: $937M Klaviyo (KVYO) Revenue 2021-2025 (Email/SMS Marketing)
- Rubrik: $887M Rubrik (RBRK) Revenue 2021-2025 (Data Security/Backup)
- OneStream: $489M OneStream Announces Fourth Quarter and Fiscal Year 2024 Financial Results (Financial Planning Software)
- Hinge Health: $390M Hinge Health Files for IPO, Revealing Growing Revenue – Bloomberg (Digital Physical Therapy)
- MNTN: $226M MNTN Files for IPO, Betting on Performance CTV | AdTechRadar (Connected TV Advertising)
And a few learnings from Morgan Stanley’s summary of last 20 IPOs
Recent IPOs Are Outperforming Historical Average The last 5 tech IPOs averaged 51.0% returns and 54.7% for the last 20.
Top Performers:
- Rubrik (+186.6%) – Data security and management software
- Astera Labs (+162.8%) – Data infrastructure software
- ServiceTitan (+72.7%) – Field service management software
- Klaviyo (+11.6%) – Email marketing automation platform
Underperformers:
- SailPoint (-25.7%) – Identity governance software
- Webicon (-58.8%) – Web-based business software
- Silvaco Group (-76.5%) – EDA software tools
Key Learnings:
1. Infrastructure Software Commands Premium Valuations Companies like Astera Labs and ServiceTitan, which provide critical infrastructure or operational software, have seen strong performance. These tend to have high switching costs and very durable recurring revenue models.
2. Identity/Security Software Faces Headwinds SailPoint’s underperformance reflects broader challenges in the cybersecurity software space, possibly due to market saturation or economic pressures on IT spending.
3. Niche B2B Tools Struggle for Scale Smaller, specialized B2B software companies like Webicon and Silvaco have underperformed, suggesting investors prefer platforms with broader market appeal and clearer paths to significant scale.
4. Timing and Market Conditions Matter The B2B software companies that went public in 2024-2025 (ServiceTitan, SailPoint) have shown more mixed results compared to some earlier debuts, potentially reflecting changing investor sentiment toward B2B SaaS valuations.
5. Revenue Model Clarity is Critical The best-performing B2B software companies appear to have clear, predictable revenue streams and strong customer retention metrics, which translate to investor confidence post-IPO.
