Sailing back to them streets

Last week SailPoint made it official. They are for the streets. They tried hard to stay away, but this street life is all they know.

On Friday SailPoint filed their S-1 as they get ready to IPO once again. No surprise given the news we say in Q4 of last year that they were talking to bankers about doing this very thing. For those se of you who don’t like reading 315 page documents, here are some quick highlights:

Financials

Annual Recurring Revenue (ARR):

• $813 million as of October 31, 2024.

• Represents 30% year-over-year growth.

SaaS ARR:

• $485.7 million as of October 31, 2024.

• 40% year-over-year growth, with 24% attributed to new customers and 8% from migrations.

Customer Base:

• 2,895 customers as of October 31, 2024.

• 67% year-over-year growth in customers generating over $1 million ARR.

Revenue:

• $699.6 million for the fiscal year ended January 31, 2024.

• $621.5 million for the nine months ended October 31, 2024.

Dollar-Based Net Retention Rate:

• 114% as of October 31, 2024.

Customer churn rate specifically wasn’t listed. ( Or if it was I missed it, I’m only human people). But by definition, it’s included in the Dollar-Based Net Retention Rate.

Overall, they’ve got the numbers people usually look for. YOY growth and a shrinking operating margin. However, the game isn’t the same since SailPoint left these streets back in 2022. Customers want a platform, the market is flooded with younger and more innovative companies, and let’s be honest…SailPoint doesn’t have the reputation they once had. It’s going to be VERY interesting to see what the Street thinks over the next couple of months.

But one small thing I want to point out:

“The principal purposes of this offering are to reduce our indebtedness, increase our capitalization and financial flexibility, create a public market for our common stock, and enable access to the public equity markets for us and our stockholders. We expect to use approximately $    of the net proceeds from this offering to repay a portion of our Term Loan (or $    million if the underwriters exercise their option to purchase additional shares in full), and the remainder of such net proceeds will be used for general corporate purposes, which may include future acquisitions or investments in complementary businesses, products, services, or technologies. As of the date of this prospectus, we have not entered into any material agreements, commitments, or understandings relating to any significant transaction of this type.”

Really, just read that first sentence…. And I’ll let you take it from there….

Yup, moving on.

Regardless I think this lights the path for other Identity companies to look at IPO. 2025 is going to be such an interesting year!

36 Million!!

Well, hello, Orchid Security. Fresh off a 36M funding round Orchid looks to shake up the identity industry by saying everything we know for the past decade is wrong. ( I LOVE IT!)

Check out this nice little snippet from their website:

Really it’s the first two numbers for me. 90% Reduction in Application Onboarding time! 75% savings in Professional Services!!! Anyone from the big four reading this, just clicked the unsubscribe button..lol.

Those of you who know me well, know that i’ve been SCREAMING THIS for years now. It doesn’t have to take NEARLY as long as we’ve been making it. And it’s not just LLMs and AI that make this possible, although it’s a huge part of it. The biggest thing is standards. We can programmatically discover, interrogate and provision an application and it’s accounts. Every application has an API interface, and a majority of them use standards for handling things like: Authentication, User account creation, etc. Where there is a standard, there is a pattern, where there is a pattern, there is a path for automation.

Welcome to the New World, folks.

CAVEAT: I don’t have any knowledge of how Orchid actually does what they do, I’m just making an educated guess based off of their website, and what they say they can do.

Welcome to the show Orchid, let’s see what ya got.

Executive Order 14117

Have you heard of it?

Yeah I hadn’t either until a buddy brought it up in a group chat recently. He was flabbergasted ( I mean c’mon, how often do you get to use that word!) at the fact that the identity community.

Here’s a quick rundown on what it is:

Executive Order 14117 is a bold move by the U.S. government to tackle a growing national security concern: the exploitation of Americans’ sensitive personal data by foreign adversaries. Signed in early 2024, this order zeros in on the risks posed by countries of concern accessing bulk personal data like biometrics, financial records, and even geolocation details. With adversaries using advanced technologies to weaponize this data for espionage, cyberattacks, and influence campaigns, the order pushes for regulations that restrict these transactions and safeguard U.S. citizens’ identities. The DOJ, tasked with enforcing these measures, rolled out a framework to clamp down on unauthorized access, particularly targeting data brokers and vendors handling this information.

At its heart, EO 14117 underscores how critical identity protection has become in today’s geopolitical landscape. It’s not just about preventing breaches; it’s about stopping foreign entities from turning our own data into tools of manipulation and harm. For businesses handling sensitive data, this is a wake-up call to step up security and compliance. And for the rest of us, it’s a reminder of how intertwined identity and security have become. In an age where data is power, protecting identity is about more than privacy—it’s about national defense.

Furthermore the penalties not meeting this EO arent light either. Civil penalties can reach up to $368,136 or twice the amount of the transaction involved, whichever is greater. Willful violations may result in criminal fines up to $1,000,000 and imprisonment for up to 20 years. 

Sooo who wants to sign up for the Chief Identity Officer role again?

( I’m kidding….kinda)

So what’s your thoughts?

The Identity Jedi Universe

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