The Offering
The offering will be managed by a group of underwriters led by Morgan Stanley and JPMorgan. Meanwhile, the company has not disclosed details like the number of shares being offered and the offer price. Netskope will use proceeds from the offering mainly for general corporate purposes, including working capital, operating expenses, and capital expenditures.
The company also plans to use a part of the amount for satisfying anticipated tax withholding and remittance obligations related to the settlement of its outstanding restricted stock units in connection with the offering. The remainder of the proceeds will be used for acquiring or investing in complementary businesses, products, services, technologies, or other assets.
Key Player
Headquartered in Santa Clara, California, Netskope is a pioneer in the cloud access security broker space and a leading player in the secure access service edge market. Founded in 2012, the company competes with Palo Alto Networks, Cisco, and Zscaler, among others.
In the six months ended July 30, Netskope’s annual recurring revenue increased 33% year-over-year to $707 million, while revenues jumped 31% to about $328.5 million. The company reported a net loss of $170 million or $1.59 per share during the first half, which marked an improvement from the prior-year period when it incurred a loss of $207 million or $2.18 per share.