The Second IPO Launches Will McAfee Become No.1 in Antivirus Market?

In PC era, antivirus software played an important role with computer, while people have already forgotten it at present. The popular antivirus software has gradually gone out of our sight. And in the era without antivirus software, a software security company choose to go public in NASDAQ for the second time.

In the evening of 22nd, October, McAfee, the antivirus software company officially went listed in NASDAQ. On its first day of trading, its stock price dropped by 6.50% to $18.70, with a market value of $8.076 billion. Under the trend that software companies go listed, McAfee’s stock price doesn’t raise as it expected to. As of press time, its stock price was $18.79, increased by 0.48%, with a market value of $8.115 billion.

When we look back to the past, the company had its ups and downs: it went listed in 1999, and it was delisted in 2011 after being taken over by Intel. McAfee once changed its name to “Intel Security”, but Intel sold half of its stocks in 2017. Experiencing ups and downs for decades, McAfee has already missed the golden age of antivirus software. And what will be the reason for its second listing?

The Second IPO Launch, What Will Be Its Reason?

After the first IPO launch, McAfee’s poor performance may be the reason for its delisting. And its improved performance may be their confidence to go public again.

The performance of McAfee is improving in the last three years, and it achieved a considerable growth for its revenue. The prospectus revealed, that the company has achieved a $2.4 billion revenue in 2018, increased by 16% compared with 2017 (revenue $2.08 billion). And in 2019, total revenue reached $2.6 billion, with 9.4% increase.

At present, the company’s growth mainly comes from individual and cooperate subscription. For revenue of individual users, recurring revenue accounted more than 85% of total revenue in the past three financial years. In 2020, in the 26 weeks up to 26th, July, recurring revenue accounts for 88%, wherein 85% of its yearly subscription comes from core users.

McAfee’s marketing strategy helps it to acquire a large number of users. Judging from its recurring revenue ratio, we can see the loyalty of its user, which will become a long-term stable income for the company.