IronSource IPO: Company to Offer Stock in SPAC IPO
The ironSource IPO is the newest opportunity in the mobile app market. After Roblox stock hit the market, investors wanted to know where to look for the next big break. Could ironSource stock be it? Here’s what we know…
IronSource IPO: The Business
IronSource is an Israeli software company. It provides a comprehensive business platform for the app economy. Any app or game developer can use the platform to turn their app into a scalable and successful business. It does this by helping to monetize the app, grow user engagement and analyze for optimization.
IronSource co-founder and CRO Omer Kaplan said…
Our solutions cover the entire game growth cycle, from growing your user base, to generating revenue to reinvest in growth, and then analyzing and optimizing the entire cycle to drive profitability. Using our platform, game developers are able to unlock a flywheel of continuous growth, and since our business model is aligned with our customer’s success, as they grow, we do too. While this cycle is most often leveraged by mobile games, it’s easily transferable to apps outside of gaming, and today 16% of our customers with more than $100,000 of annual revenue are already from industries beyond games.
Founded in 2010, ironSource has over 750 employees and serves more than 2.3 billion monthly active users around the world. As the online and mobile industries grow, so does investor interest. That’s why the ironSource IPO announcement has investors excited.
IronSource Stock: Investor Presentation Highlights
Along with the announcement of ironSource stock came the investor presentation. This is similar to the prospectus a company files in the traditional IPO process. It gives a background on the company, its market and its finances.
According to the presentation, there are 6.7 billion global devices as of December 31, 2020. The average user spends 4.3 hours on mobile daily with 83% of that time going to apps. In 2020, people downloaded 140 billion apps worldwide.
IronSource lists Facebook and Google as tech platforms fueling the gaming boom. In 2020, there were 2.6 billion mobile gamers. The gaming market totaled $76 billion. And 90% of the 20 most downloaded games of 2020 used the ironSource platform.
So, what does ironSource’s financial data look like?
Here are some financial highlights from the ironSource investor presentation:
- 2020 revenue wad $332 million; 2022 projected revenue of $622 million
- 83% year-over-year revenue growth for 2020
- 291 customers in 2020 brought in over $100,000 each, up 54% from 2019
- 31% adjusted EBITDA margin
For more details, you can check out ironSource’s investors page. There you can access the ironSource IPO announcement, SEC filings and investor presentation.
Now, for those who don’t know, what is a SPAC IPO?
SPAC IPO: Thoma Bravo Advantage
A SPAC IPO is the process of going public via SPAC. A SPAC is a special purpose acquisition company, or blank-check company. It has no business operations. The company goes public to raise capital. It then uses those funds to acquire a private company. In this case, ironSource is the acquiree and Thoma Bravo Advantage (NYSE: TBA) is the SPAC.
IronSource co-founder and CEO Tomer Bar Zeev stated…
Joining forces with Thoma Bravo Advantage to bring ironSource to the public markets presents an opportunity to partner with the world’s leading software investor to achieve the next level of growth. Despite our previous progress pursuing a traditional IPO, when we met with Thoma Bravo Advantage we found an alignment of vision and shared conviction about the long-term growth we can drive at ironSource that made them the perfect partner as we take this next step in growing our company, and the market as a whole.
Chairman of the Board of Directors of Thoma Bravo added…
As one of the fastest-growing and most innovative platforms for building and scaling businesses in the app economy, ironSource is well-positioned for continued success as a public company. With a full suite of solutions across the app growth life cycle – and a unique combination of scale, business growth, and profitability – we expect ironSource to further its market leadership position as a public company. We look forward to partnering closely with Tomer and the talented ironSource team in this exciting next chapter for the company.
So, when can investors expect ironSource stock?
IronSource SPAC IPO Details
The transaction gives ironSource an equity value of $11.1 billion. The deal is expected to give up to $2.3 billion. This includes $1 billion from Thoma Bravo’s trust. It also includes an oversubscribed Class A ordinary share PIPE. It will be led by a $300 million investment from a Thoma Bravo affiliate and joined by Tiger Global Management, Counterpoint Global (Morgan Stanley), and Wellington Management, to name a few. The PIPE is expected to total $1.3 billion.
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What is the ironSource IPO date? According to the press release, investors can expect ironSource stock in the second quarter of 2021.