FatPipe (FATN) Registration Filing summary

Company overview and business model

• Provides enterprise-class, application-aware, secure SD-WAN, SASE, and NMS software solutions, primarily on a subscription basis.

• Serves enterprises, service providers, government organizations, and mid-market companies globally, with key markets in the US and India.

• Core technology is internally developed and protected by 13 patents; solutions are distributed via a network of resellers and partners.

• Revenue is generated through managed service contracts, with offerings tailored to customer needs and network configurations.

Financial performance and metrics

• Fiscal year ended March 31, 2024: net revenue $17.86M, up 13% from prior year; gross profit $16.79M, gross margin 94%.

• Net income attributable to stockholders was $4.37M, up from $2.91M in the prior year.

• Adjusted EBITDA for FY 2024 was $6.34M, an increase of $2.52M year-over-year.

• Cash and cash equivalents as of March 31, 2024: $1.11M; total assets: $21.44M; total liabilities: $7.39M.

• Two largest distribution partners accounted for 49.5% of total revenues in FY 2024.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used for sales and marketing, customer support, ongoing corporate purchases, R&D, and general working capital.

• Management has broad discretion in the allocation of proceeds, with investments in short- and intermediate-term interest-bearing instruments pending use.