Investors are looking to buy shares of the cybersecurity firm Tanium.
But is this company publicly listed? If not, where can interested traders get a chance to buy Tanium stock and enter the fast-growing endpoint management firm?
We looked into all of these questions, and here’s what we found.
Can You Buy Tanium Stock?
There is no way to buy Tanium stock directly since it is a private company. The firm’s leadership has indicated many times in the past about having an IPO.
For example, a 2021 interview with Orion Hindawi, its then CEO, indicated that a CFO had been hired to assess the possibility of going public.
He echoed a similar sentiment in another discussion in 2016. However, nothing has been fructified to date.
In fact, a few of the early employees have grown weary of waiting around.
Reports emerged some time back that a few of them think this entire discussion is just a way to retain talent, and there are no plans for the Tanium IPO.
So is it impossible to buy Tanium stocks completely?
Not entirely. There might be an indirect option to consider.
We will explore this possibility in the later sections.
Let us first discuss Tanium, its products and clients, and why so many traders are interested in buying its securities.
About the Company
Tanium started in 2007. The father and son duo of David and Orion Hindawi are the brains behind the firm. David also founded BigFix, a startup that IBM acquired in 2010. He served as the company’s CEO till 2016, after which his son took over.
Recently, Orion was promoted to Executive Chairman of the Board of Tanium. This paved the way for Dan Streetman to become CEO.
Dan is the former CEO of companies like TIBCO Software and Allvue Systems. Tanium was originally based in Emeryville, California.
In Dec’20, they moved to Kirkland, Washington (although the operations center remains in Emeryville).
Product
Tanium is a cybersecurity company. It has created a suite of endpoint IT security software called “Converged Endpoint Platform.”
This is a centralized system where security administrators can monitor and protect all devices connected to their network. Each piece of hardware, be it desktops, mobile phones, tablets, laptops, etc., is known as an “endpoint.”
That’s how the name came about.
Apart from real-time visibility, the software also enables vulnerability investigation.
It is a cloud-based, enterprise-scale suite of programs. The services offered include:
- Risk and compliance management
- Asset discovery and inventory
- Client management
- Threat hunting
- Sensitive data monitoring
Tanium’s security platform employs several techniques: machine learning, AI, analytics, and even human expertise.
Clients
The company has an impressive list of clients, which includes nearly 50% of Fortune 100 enterprise customers.
It also services several government organizations. In fact, many branches of the US Armed forces rely on the endpoint management systems provided by Tanium.
Large financial institutions like Barclays and Nasdaq and major retail chains are also among its notable clientele.
For six years on the trot, the company has been a part of Forbes’ Top 100 Private Companies in Cloud Computing list.
Who Owns the Company?
It is owned by the founders (David and Orion) and Tanium investors from the VC side.
Some of the prominent sources of its venture capital funding of the firm include TPG Growth, T. Rowe Price, Andreessen Horowitz, and IVP.
Since 2007, the company has raised capital several times, amounting to $1.1 billion.
How Much Is the Company Worth?
Tanium received a post-money valuation of about $9 billion in its latest funding round, per Pitchbook Data.
This was held in Jun’20, and nearly $100 million was raised at the time.
Revenue
The latest reliable information about Tanium revenues is from their website for the financial year 2019.
The firm posted $430 million in sales and had double-digit adjusted EBITDA margins.
As per these numbers, Tanium currently has a 20X multiple on earnings.
Online reports estimate the current revenue figures closer to $600 million. However, this data is not verifiable.
Tanium IPO Date
As mentioned, the management has indicated the chance of an IPO several times, but nothing much has come out of it.
For now, there is no clear Tanium IPO date to look forward to.
However, with the recent appointment of a new CEO, a public offering might just be on the cards.
Moreover, after raising funding several times, there would be internal pressure from existing investors to unlock the value of their holdings.
It would be wise to keep an eye out for any future news related to an IPO.
Tanium Ticker Symbol
When the company chooses to list itself publicly, the first thing would be to file an S-10 application with the SEC.
This announces its intention to make an initial offering to the market.
Subsequently, a ticker symbol will be allotted to represent the firm.
Here are a few possible options that might be on the cards:
- TANM
- TANI
- EDPT
However, how the firm finally depicts itself in the markets depends on many factors.
Investors should know that the final symbol could be very different from what we showed above.
Tanium Stock Price
Since the shares are not currently listed, no price can be attributed to them.
In the future, if an IPO happens, investment bankers that manage the offering will come out with the right valuation.
One rough method of estimating the range of possibilities is to look at competitor stocks.
A quick check on some of these securities reveals that most of them are in a range of about $100- $200.
Of course, Tanium might choose to go with a very different price.
It will only be clear once the IPO is announced.
How to Invest in Tanium Stock?
Currently, investing in Tanium directly is impossible because it is not publicly traded.
However, certain marketplaces like Linqto, Equitybee, and Upmarket exist where Pre-IPO shares are bought and sold.
These businesses connect early investors or employees who want to sell their holdings with interested traders.
Note that Pre-IPO investing is very different from trading on stock markets.
There are certain restrictions on who is allowed to purchase such stocks.
Only accredited investors can take them up. These individuals have over $1 million net worth or very high incomes.
Again, you must first approach these marketplaces to check for Tanium stock availability.
It may not be possible to buy specific stocks all the time.
Once they confirm that an appropriate seller has been found, the deal can be struck.
Interested investors must remain in wait-and-watch mode if no one is willing to trade their shares.
Tanium Competitors That You Can Invest In
Cybersecurity is a vast field, so finding a listed company that is a competitor to Tanium is difficult.
Instead, here are three players from the same field but may not have products in the exact segment as Tanium.
Zscaler Inc. (NASDAQ: ZS)
Zscalar is a software firm whose products enable fast and secure access to cloud data and apps.
Its platform processes nearly 160 billion transactions every day.
The firm has partnered with over 80 firms, including big names like Microsoft and Amazon.
In 2022, Zscalars revenues touched $1.09 billion, while its net income was -$390.28 million.
Check Point Software (NASDAQ: CHKP)
Check Point is one of the world’s oldest and largest cybersecurity firms.
It was founded in 1993, and despite its long legacy, the firm is still growing strongly across several geographies.
The company has a significant client base in the Middle East, Africa, and Europe, with America making up just 40% of its sales.
In recent years, Check Point has shifted its focus to cloud capabilities, reaping rich rewards for them.
Check Points revenues in 2022 were $2.33 billion, with $796.90 million in net earnings.
Palo Alto Networks (NASDAQ: PANW)
Palo Alto is another giant in the cybersecurity space.
It has a wide range of products in this segment. The company’s clientele includes some very large businesses.
It has designed its offerings around three pillars: Network, Security automation, and Cloud security.
In 2022, the firm had $5.5 billion in revenues and -$267 million in net earnings.
Wait for a Tanium Stock IPO or No?
There have been reports of weariness among early employees about Tanium’s IPO.
The management seems to have indicated its interest many times in the past without actually doing anything.
For now, it is uncertain whether a public listing is imminent in the near future.
It might happen, of course, but nothing can be said for sure.
Meanwhile, some of the other cybersecurity stocks mentioned above could also be good opportunities to consider.
Final Thoughts
Tanium stock is not available for the public at large since the firm is privately held as of now.
In the future, it might decide to have an IPO, when shares would be traded directly on the markets.
Until then, accredited investors can try and purchase pre-IPO stock from some of the forums mentioned earlier.
We also discussed a few alternatives that are already listed and can give exposure to the cybersecurity sector.
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