Sprout Social, Bill.com set pricing ranges ahead of next week's IPO debuts

SEC Chairman Jay Clayton discusses the market selloff given trade concerns, how trading is working on Main Street, the SEC’s IPO rules and the issue of companies buying back their stocks.

With Bill.com and Sprout Social preparing for their respective initial public offering debuts next week, price ranges for their stock share prices have been announced and set between $16 and $18 per share, according to a report by Crunchbase.

The payment software and social media management startups will be among the last startups to go public as the 2019 financial year comes to a close at the end of the month. Both companies are offering around 8.8 million shares, with Bill.com set to start trading on the New York Stock Exchange on Dec. 12 and Sprout Social set to begin trading on NASDAQ Dec. 13.

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Both companies had promising years thus far, with Bill.com reporting around $35.2 million in total revenue during the third financial quarter, demonstrating a nearly 57 percent year-over-year growth.

For this same third-quarter period of 2019, the company posted $5.7 million in net losses, showing a whopping 544 percent jump compared to the same time last year. While seemingly a massive increase in terms of losses, $5.7 million actually isn’t so much in terms of quarterly losses for a software company with profit earnings over 70 percent.

Sprout Social's office. (Credit: Sprout Social)

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Meanwhile, Sprout Social, which filed to take its stock public in late October, posted revenues of around $74.6 million during the first three quarters of the year. That figure is nearly $20 million more than the startup's revenue for the same time last year, when it reported $56.6 million.

However, Sprout’s net losses appear to be mounting quickly, going from $17 million during the first three financial quarters of 2019 to nearly $21 million for the same time this year. Should the underwriters buy additional shares, Sprout Social could raise $182.65 million. The lead underwriters are Morgan Stanley and Goldman Sachs, according to Market Watch.

As for Bill.com, the Palo Alto, California-based company looks to gain $158.8 million through the IPO, however, should the underwriters choose to exercise options to purchase additional shares, it could stand to make $182.6 million, Market Watch reports.

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