JFrog and Snowflake’s aggressive IPO pricing point to strong demand for cloud shares

After , both JFrog and Snowflake priced above their refreshed intervals last night. At their final prices, the two debuts are aggressively valued, showing continued optimism amongst public investors that cloud shares are an attractive bet, even if their growth is financed through a history of steep losses, as in the case of .



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The IPO pricing is notable because it from a SaaS company. Snowflake’s pricing is noteworthy for showing the value of huge growth and improving economics.


This morning we’ll explore the two companies’ final values, compare those results to their initial IPO price ranges and calculate their current revenue multiples based on last quarter’s annual run rates. This is going to be fun.


Later today we’ll have updates on how they open to trade. For now, let’s get into the math and valuation nuance you and I both need to understand just where the public market is today as so many unicorns are either en route toward an IPO, or are standing just outside the pool with a single hoof dipped to check the temperature.


Price this, you filthy animal


JFrog its IPO at $44 per share, above its raised range of $39 to $41 per share and comically higher than its first price interval of $33 to $37 per share. Indeed, the company’s final IPO price was 33.3% higher than the low end of its first proposed pricing range.


Though I doubt anyone expected the company to go for so little as $33 per share, JFrog’s pricing run shows strong demand even before it began to float.