Cloudera Targeting $200 million in IPO

Cloudera is a United States-based software firm that primarily deals with the production and distribution of Apache Hadoop. It also provides support for the product’s use and trains its clientele in the utilization of the company’s programs. Its clientele is mainly centered towards enterprises, with applications such as Apache Hive, Apache Avro, and Apache HBase. These put together ultimately provide the Hadoop platform. The company was formed in 2008 and employs 1,600 people. Cloudera’s headquarters are found in Palo Alto, California. However, it also has other locations internationally such as in Budapest, Paris, Shanghai, Seoul and Melbourne.

The software company filed to go public on March 31st this year. It plans to make its debut on the New York Securities Exchange under the ticker CLDR. Chief underwriters for the issuance of this firm are Morgan Stanley, JP Morgan, Allen & Co., BofA Merrill Lynch, Citigroup, Deutsche Bank Securities, Stifel, JMP Securities, and Raymond James.

Regarding accounts, the firm has had higher losses. However, the company’s funding has increased over the past two years. In 2015, the company raised funding totaling to $166 million, making a loss of $203 million over that fiscal year. Over the year that just ended at the beginning of February 2017, the enterprise raised $261 million and ended up making a loss of $187 million. Most of this revenue comes from offering software subscriptions to its clientele. Typically, these issuances are renewed every one to three years. Further, Cloudera provides services to various corporations, ranging from professional services, personnel training, and education.

Despite its plan for a new release, this company faces a significant challenge in going public. Beginning and developing large enterprises around open-source software is tough. As such, other firms have come up hoping to follow in the footsteps of the successful company Red Hat which distributed Linux software. The company went public in 1999. In line with this past development, another of Cloudera’s competitors went ahead of the enterprise in going public. Hadoop distributor MapR HortonWorks had its Initial Public Offering in 2014.

Various competitors have come up in the wake of Cloudera’s IPO filing. Software and technology giants that have come up during the filing are IBM, Oracle, SAP, and Teradata. Further, companies that provide infrastructural services in line with the cloud include Amazon Web Services and Microsoft Azure.

The demand for this company’s stock appears high. However, there has been a significant risk that could hinder this firm’s successful release. Cloudera highly depends on the Apache Software Foundation, which oversees the development of various programs that Cloudera uses for commercial purposes.

Apart from the provision of these groups of software, the company additionally provides services for the cloud. In line with its diversification, Cloudera has established more research toward highly-advanced systems such as IBM Watson and AWS overall. Previously, the company had filed a release confidentially in the past. The current filing has been termed as Project Thunder.

Major investors in the company include Accel Partners, Greylock Partners, and Intel, which currently owns a 22 percent stake in the firm. The deal was as a result of a funding agreement between both companies.