Hi there,
If you are referring to DND's IPO back in July, then I'm afraid you missed the IPO boat as it already went public. Back then, we did like the IPO and its pricing as compared to other SaaS peers. I bought the company back then and haven't sold as I still believe in the long term prospects of the company. I just answered another question on DND and earnings released earlier this week - here was my response:
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'd consider it a solid report. The company posted revenue of $21.9M which beat analysts estimates by $1.2M and represented YOY growth of 29%. It also beat its own internal guidance for $20-$21M. FQ2 revenue is expected to come in at ~ $28M at the mid range, which would represent growth of 62% over Q2 of 2019 and 28% QoQ.
Although the company posted a net loss, it was expected given it is in high growth mode. Adjusted EBITDA was also strong, rising 41% YOY to $12.59 million which was once again, above company guidance for $12-$12.5M. The company also exited the quarter with $16.5M in cash and total liability's of $160M. This is a big improvement over the $2.5M in cash position and total liabilities of $235M it had last quarter. The increase in cash and lower debt is a result of IPO and Bought Deal proceeds. In other words, it has improved its financial position and is also better positioned to make further acquisitions. Speaking of which, it closed on the $54.4M dollar deal to acquire "PIE a leading U.K. cloud-based real estate due diligence platform".
Overall I'd consider this a steady quarter. One of the big tells for recent IPOs is how they perform against guidance and estimates. So far, it is delivering as expected.
If you are wondering about share price weakness today - I would not read too much into this. Most SaaS companies are struggling and DND is getting swept up in negative industry sentiment (and profit taking). REAL, DCBO, NVEI are all experiencing big dips today. Remember these SaaS companies have seen massive runups and these pullbacks are healthy. IMO nothing has changed in terms of the investment thesis here and I am happy to hold my shares.
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Overall, I quite like the company. Although it may see volatility moving forward (along with most high-flying tech stocks), I really like the long term prospects of the company.
Mat