Cloudera Files for IPO With $261 Million in Annual Revenue
01 April 2017 - 7:07AM
Dow Jones News
By Rolfe Winkler
Big-data software company Cloudera Inc. filed paperwork to go
public on Friday, revealing a business that is growing quickly but
possibly not fast enough to deliver gains to its big investor Intel
Corp.
Cloudera, based in Palo Alto, Calif., sells software and
services that help customers analyze oceans of digital information
flowing from networked devices. Its technology is built upon an
open-source project called Hadoop that was developed to store and
run computing processes across many different computers.
For the fiscal year ended Jan. 31, Cloudera's revenue rose 57%
from a year earlier to about $261 million.
Cloudera will inevitably be compared to rival Hortonworks Inc.,
another Hadoop software specialist with a different business model,
that went public in December 2014. Based on where Hortonworks
trades on the public market, Cloudera's revenue and growth rate are
unlikely to justify matching the $4.1 billion valuation that Intel
stamped on the company in 2014 when the chip giant invested $740
million. Half of that money went to Cloudera and the other half to
buy shares from early investors and company executives.
Hortonworks's share price has fallen over 60% since the first
day of trading, pulling its market value down to just above $600
million. Compared with Cloudera, Hortonworks has about two-thirds
the revenue, as well as a similar growth rate and gross profit
margin. It now trades at about three times last year's revenue of
$184 million, excluding cash on its balance sheet.
--Jay Greene contributed to this article.
Write to Rolfe Winkler at rolfe.winkler@wsj.com
(END) Dow Jones Newswires
March 31, 2017 15:52 ET (19:52 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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