Workday IPO Shows Entrepreneurs What Matters: Market Size, Profitability And, Yes, Pricing

The successful public market debut of Workday this past week was breathtaking. The initial filing range of $21 - $24 was raised to $24 -$26 while the company was marketing on its roadshow. The IPO was ultimately priced at $28, and amazingly closed on its first day at $48.69, up 74% from the IPO price and up 116% from the mid-point of the initial filing range. As I’ve discussed earlier, hot IPOs don’t always perform well in the months and quarters after pricing, but public investors...