Netskope IPO: Small Bet Opportunity in a Rapidly Growing SASE Market

26 days ago

Chip Stock Investor Hosts

"We haven\'t bought any of the stock yet, but why are we continuing to follow it? It\'s a fast growing industry. Cybersecurity is a secular growth trend. Netskope is a small company, but laser focused on one of the fastest growing portions of that fast growing industry, SASE."

The hosts discuss Netskope, a recent IPO in the cybersecurity space, highlighting its focus on SASE, which combines network security with cloud service delivery. They note the company\'s strong revenue growth (over 30% sequentially) alongside ongoing challenges including GAAP net losses, negative free cash flow, legal disputes with competitors like Fortinet, and a complex dual-class share structure. While not recommending an immediate purchase, they indicate that Netskope could serve as a small, strategic bet in a secular growth market if the company converts to free cash flow positivity.

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