EquipmentShare's IPO popped 33% on day one, hitting an $8 billion valuation. The equipment-rental platform generates $4 billion in revenue with 40-47% year-over-year growth and is already profitable. Jason M. Lemkin notes that at this scale, profitability, and growth, an IPO becomes effortless.
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I do want to discuss public markets because we saw, we saw EquipmentShare IPO pop 33%, $8 billion market cap, uh, growing 47% at $4 billion in revenue. IPO markets open, we feeling great about this?
I think it's a good IPO. I think that again, it points to, I, um, I think it points to the need for scale, profitability, and it's a very different IPO obviously. Just for everyone's background, EquipmentShare is a kind of technology-enabled equipment rental company for construction. So if you're a builder, a construction builder in, you know, pick any US city and you need— you're doing a job and you need to rent diggers, conveyors, whatever else other equipment you need, these are the guys to go to, right? A great story, 10-year story, real critical mass, making money. Not— it's not— it's inherently a physical business with a digital overlay. And the end of the day, there's nothing digital about a construct— piece of construction equipment. It's a large yellow or green painted thing that digs up dirt and moves it ground. So it's a grounded business, but they seem to have built kind of, you know, in large part using digital technology to become more efficient. They seem to build a pretty compelling business. So go teams. I think it's—
if you're, if you're at, if you're at billions in revenue growing 40% and profitable, right? Um, and out— and outlier margins for your segment, then you can IPO in an effortless fashion. Like this— I, I view this as an effortless IPO, which was interesting. It was effortless. It's really oversubscribed. You just IPO, you trade up, there's no drama.
It's just, this is what an IPO is supposed to be. And fun to see it was a Y Combinator company from, I think, 2015. I would love to go back and look at everyone's notes as they sat through Demo Day 2015 and what they said about the equipment rental company from the heartland. 'Cause those guys—
