Netskope jumped more than 18% in its Nasdaq debut on Thursday, pushing the cybersecurity firm to $8.6 billion in market value.
The stock debuted at $23 under the ticker symbol “NTSK,” after Netskope sold shares at $19 on Wednesday at the top end of its recently upped pricing range. The sale raised over $908 million.
CEO and co-founder Sanjay Beri said in an interview with CNBC ahead of the first trade that the offering was more than 20 times oversubscribed. Netskope aims to help companies protect their data while harnessing artificial intelligence tools.
“The world is moving to AI and cloud,” he said. “That requires a redefinition of the biggest market in security, data network security. That’s what we are.”
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Netskope one-day stock chart.
Beri told CNBC that the company doesn’t typically go for larger acquisitions based on annual recurring revenue. Bigger deals aren’t off the table, and Netskope typically targets “specific” technology and teams, he said.
The company operates in a competitive landscape, listing Palo Alto Networks, Broadcom, and Cisco among its fiercest contenders. But Beri said his goal isn’t to become a one-stop cybersecurity shop.
“I’m not a believer that in security and networking, people want one platform,” he said. “People need to play well with each other in the industry and integrate for the best of the customer.”
Netskope, which filed for its initial public offering last month, hasn’t reached profitability yet. Revenues totaled $328 million for the six months ended in July, and the company reported a net loss of $170 million.
Beri told CNBC that the company plans to turn free cash flow positive this year. Annual recurring revenues surpassed $700 million at the end of July.