Cloudera became the latest tech company to IPO today. After opening at $15 per share, the company’s stock rose in value by over 20 percent until it came to rest at $18.09. The stock thus ended well above the $12-$14 range that was being expected, however, employees were still left disappointed.
With today’s IPO, Cloudera’s market cap reached a value of $2.3 Billion. If that sounds impressive, well, Cloudera’s valuation at the end of its last round of private funding stood at $4.1 Billion. So, the company’s valuation has actually come down if anything. That is bad news for a lot of the company’s employees who had received equity compensation from the company.
The value of their compensation has actually gone down if anything after the latest public round. This is relative of course, and also depends upon when the said employees joined Cloudera. However, the company is not overly worried at a down valuation. After all, it is not the first company to have a down-round IPO and it can achieve and even exceed the $4 Billion mark again.
As far as Cloudera’s investors are concerned, Intel, Accel and Greylock Partners are the three largest shareholders respectively. Intel is the largest stakeholder with a pre-IPO share of 22 percent.
As far as the company’s revenue is concerned, it stood at $261 million in the fiscal year ending in January 2017. That is an year over year increase of around $95 million. Losses went down a tad and stood at $186.32 million, down from $203 million in the same period last year. The company accepts and is cool with the idea of incurring losses for some time yet.
There is nothing wrong with the company’s offerings however, it has quite a bit of competition to overcome yet. The list includes HP, IBM, Oracle, Amazon Web Services. That is one formidable list but yet, with Intel’s backing, Cloudera is holding up its end of the competition.