Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: We're lucky that we have the CEO of sale Point
Speaker 2: Technologies with us, Mark mclin. He joins us. Now, how
Speaker 2: does this IPO mesh with your long term vision for
Speaker 2: the company?
Speaker 1: Well, I think in general, we've tried to stay focused
Speaker 1: as a business on building great business with our customers
Speaker 1: and winning in the market. In some ways, what happens
Speaker 1: in the financial ownership of the business matters a lot,
Speaker 1: but it doesn't actually affect our day to day lives,
Speaker 1: if you will, and finding and securing customers and making
Speaker 1: them successful, that's certainly always our focus. We do think though,
Speaker 1: that the IPO gets us back out in the public
Speaker 1: eye a little more. The importance of what we do
Speaker 1: and what's called identity security is raising an awareness and
Speaker 1: importance to the large companies all around the world that
Speaker 1: we typically serve, and this will help with our visibility.
Speaker 1: It'll give us future fuel to grow the business. We've
Speaker 1: had a great run as a private company with Telebravo.
Speaker 1: Some folks know this. We were public before and before
Speaker 1: we were owned by Toma Bravo. It's a little bit
Speaker 1: of an interesting story of a PE backed IPO same
Speaker 1: Pe backed IPO again. But all the while, our focus
Speaker 1: continues to be on doing great things for our customers
Speaker 1: and helping them secure their enterprises with identity.
Speaker 3: Well, cyber threats have continued to increase. How does sale
Speaker 3: Points stay ahead in identity security?
Speaker 1: Yeah, what's happened in the world of cybersecurity. There's a
Speaker 1: lot of shifting things in the landscape. A simple metaphor
Speaker 1: that sometimes helps folks is that the bad actors are
Speaker 1: the attackers. Not so long ago, their metaphor was to
Speaker 1: break the glass and grab the jewels and run. Quite
Speaker 1: often now, and we've seen this in breach reports, they'll
Speaker 1: try to sneak in the back of the jewelry store,
Speaker 1: poses an employee and eventually try to quote clean out
Speaker 1: the jewelry store. And that's because they've been able to impersonate,
Speaker 1: so to speak, an employee, and that's a compromised identity.
Speaker 1: What we do is help businesses, typically mid to large
Speaker 1: enterprises around the world, focus on understanding all the identities
Speaker 1: they have, both human and nonhuman, all the data they
Speaker 1: care about protecting, and making sure that at any point
Speaker 1: in time, all of those connections are secure. It's a
Speaker 1: pretty complex problem. At scale.
Speaker 2: Who are your competitors right now and how can you
Speaker 2: help differentiate?
Speaker 1: Yeah, the truth is we've got more I like to
Speaker 1: call them PowerPoint competitors than real competitors. I mean, there's
Speaker 1: folks that are talking about this space quite a bit,
Speaker 1: but if you look at what happens day to day
Speaker 1: when we're out in the market, there's very few companies
Speaker 1: that are capable of delivering the success at scale that
Speaker 1: we have. We're fortunate to be in almost half of
Speaker 1: the Fortune five hundred, about a quarter of the Fortune
Speaker 1: two thousand, and they're generally throwing out older legacy products
Speaker 1: like from Oracle and IBM. There really hasn't been a
Speaker 1: strong challenger to us in this key space, and that's
Speaker 1: part of what I think has gotten investors excited about
Speaker 1: our potential for long term, durable growth.
Speaker 3: So another thing that's been in conversation, I'm curious, how
Speaker 3: are you all planning to address your debt load?
Speaker 1: Well, you know, one of the key use of proceeds
Speaker 1: will be to pay down a lot of the debt.
Speaker 1: We actually had a little more debt about six months ago.
Speaker 1: Our backers Home of Bravo chose to take some of
Speaker 1: that debt out with equity before the IPO, and we'll
Speaker 1: use the bulk of the proceeds from the IPO to
Speaker 1: pay down significantly, putting ourselves in what they call it
Speaker 1: debt zero, meaning we'll have as as much more cash
Speaker 1: as we have debt, which from a financial profile standpoint
Speaker 1: makes investors really happy.
Speaker 2: Why do you guys decide to do the IPO? Now?
Speaker 2: We were just talking about IPOs in general, and I
Speaker 2: was talking about an LNG export that went public at
Speaker 2: seemingly a great time and it didn't go so well.
Speaker 2: So I wonder why strategically you guys chose right now.
Speaker 1: Well, we've been watching markets as everyone has, and I
Speaker 1: think we were really pleased with the progress of the business.
Speaker 1: We went private about two and a half years ago.
Speaker 1: As part of our S one filing, we talked about
Speaker 1: the fact that as of our third quarter last year,
Speaker 1: we'd grown the business at thirty percent. We've been able
Speaker 1: to deliver non gap margins of about fourteen percent, and
Speaker 1: had a strong sense that durable growth would continue, and
Speaker 1: that was at scale. We're over an eight hundred million
Speaker 1: dollar revenue business now and investors don't see a lot
Speaker 1: of profiles of growth at scale with profit, and I
Speaker 1: think our sense was that the markets were kind of hungry,
Speaker 1: so to speak, for new issuances, particularly I think in
Speaker 1: technology security has been considered a really good market for
Speaker 1: a long time. I think we looked like a company
Speaker 1: that would fit many of their requests, so to speak,
Speaker 1: for a durable growth company in the security space.
Speaker 3: How are regulatory shifts driving demand for identity security solutions
Speaker 3: as enterprises continue shifting to the cloud. How is sale
Speaker 3: point evolving its offerings?
Speaker 1: Well, it's interesting you mentioned that regulatory is indeed part
Speaker 1: of the landscape we're addressing. Sometimes, you know, audits or
Speaker 1: the threat of failed audits or not being able to
Speaker 1: comply with regulations is a driver. But increasingly our space
Speaker 1: is less about that. Not it hasn't moved away from that,
Speaker 1: but it's less about that than truly securing their data. Again,
Speaker 1: what's happened is this concern that data can be compromised
Speaker 1: through this lens of identity. If a bad actor can
Speaker 1: somehow you know, get in, break in, steal an identity,
Speaker 1: or in some way get access to data through those identities,
Speaker 1: they can do a lot of damage. So that that
Speaker 1: focus on truly protecting the data is really more of
Speaker 1: an issue today than just regulatory compliance.
Speaker 2: You go, what's it like attracting talent right now in
Speaker 2: the market.
Speaker 1: Well, I'd say attracting talent is never easy in a
Speaker 1: very competitive technology market. I think we're very fortunate at
Speaker 1: sale Point. One of the things that we pay a
Speaker 1: lot of attention to is our culture and our values
Speaker 1: and how that shows up. And as you probably familiar,
Speaker 1: a glass Door runs around and surveys the world and
Speaker 1: tries to understand how companies are doing. We're super pleased
Speaker 1: they released those results recently. We were number seventeen in
Speaker 1: the world, and if you want to cut it by
Speaker 1: an interesting factor, we were the highest ranked tech company
Speaker 1: with under five thousand employees on Glassdoor. I think that
Speaker 1: speaks a lot about the kind of culture and the
Speaker 1: values that we live out in our company. It attracts
Speaker 1: and retains very good talent, and we're very fortunate.
Speaker 2: Hey, Mark, we appreciate your time today. We look forward
Speaker 2: to catching up with you again once you've had some
Speaker 2: time to be public. Mark mclains, CEO of sale Point Technologies,