Next week is promising to be action-packed for tech news, with earnings coming from some notable enterprise software names—Nvidia, Snowflake and Zoom Video. There will also likely be IPO filings from Instacart, according to Bloomberg, and Arm, according to various outlets. The IPO market seems to be awaking from its slumber.
The IPO filings will be worth reading for their financial details on the companies, although the important trends for Instacart have already been reported by The Information here and here, as well as by The Wall Street Journal here. What will really be fun to watch about the IPOs, though, is where the two companies are valued when their stocks hit the market, which is likely to be next month. Instacart’s private valuation has tumbled from $39 billion in early 2021 to somewhere around $10 billion to $12 billion lately, depending on whether you’re using the company’s internal valuation or looking at secondary market bids and offers, as reported by Caplight. If you use DoorDash as a comparison, and based on Instacart’s reported 2022 revenue, a valuation of around $9 billion would make sense.