Navan shares tumbled as much as 12% in their Nasdaq debut today, despite the corporate travel platform raising $923 million in what's being hailed as a successful IPO. The company priced at $25 per share, valuing the business at $6.2 billion - a steep discount from its $9.2 billion private valuation just three years ago.
Navan just learned that going public doesn't guarantee a warm welcome. The corporate travel and expense management platform saw its shares slide as much as 12% during its first day of trading on the Nasdaq under ticker "NAVN," despite what many are calling a successful IPO execution.
The company priced Wednesday night at $25 per share, hitting the midpoint of its targeted range and raising $923 million according to Reuters. That $6.2 billion valuation sounds impressive until you consider where private investors valued the company just three years ago - at roughly $9.2 billion during a $300 million funding round in 2022.
CEO Ariel Cohen, who co-founded the company with Ilan Twig back in 2015, isn't letting the stock volatility dampen his enthusiasm. "We really care about the traveler, the road warrior," Cohen told CNBC on IPO day, emphasizing how the platform transforms what used to be a 45-minute booking process into a seven-minute experience.
The Palo Alto-based company, formerly known as TripActions, has built what it calls an "all-in-one super app" for business travel and expenses. The customer roster reads like a who's who of tech and enterprise giants: OpenAI, Zoom, Lyft, Adobe, Unilever, and even Blue Origin are among the 10,000+ companies using the platform.
But here's where things get interesting - Navan isn't just another expense management tool. The company has been doubling down on AI through its virtual assistant Ava, which now handles about 50% of user interactions. "You are always one click away from Ava our chatbot to fix a flight, connect to a new hotel... whatever you need," Cohen explained, positioning this as the end of those dreaded hold times with traditional travel agencies.
The numbers tell a mixed story of rapid growth shadowed by profitability concerns. Navan posted trailing 12-month revenue of $613 million (up 32%) with gross bookings hitting $7.6 billion (up 34%), according to its S-1 filing. However, the July quarter showed a $38.6 million net loss on $172 million in revenue, missing previous profitability timelines despite the 29% year-over-year growth.
