{"id":339617,"date":"2017-04-29T04:15:42","date_gmt":"2017-04-28T20:15:42","guid":{"rendered":"http:\/\/techcrunch.com\/?p=1482745"},"modified":"2017-04-29T04:15:42","modified_gmt":"2017-04-28T20:15:42","slug":"cloudera-finishes-up-20-in-stock-market-debut","status":"publish","type":"post","link":"https:\/\/people.utm.my\/asmawisham\/cloudera-finishes-up-20-in-stock-market-debut\/","title":{"rendered":"Cloudera finishes up 20% in stock market debut"},"content":{"rendered":"

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After pricing its IPO at $15 per share, Cloudera, the enterprise big data company, closed the day up more than 20 percent, at $18.09. This also is above the range of $12 to $14 for which Cloudera was preparing.<\/p>\n

While the surging stock price is great for new investors, the outcome is still a\u00a0significant disappointment for some employees of the company because\u00a0their equity compensation has gone down in value if they joined the team after the last private round. Cloudera\u2019s market cap is now about $2.3 billion, significantly less than the\u00a0$4.1 billion valuation Intel gave in 2014. This increasingly common phenomenon is\u00a0now nicknamed a\u00a0\u201cdown-round IPO.\u201d<\/a><\/p>\n

In an interview with TechCrunch, CEO Tom Riley insisted that this was not a problem for the company because of the \u201cgrowth prospects ahead of us.\u201d If it performs well in the stock market, it could ultimately achieve the $4 billion-plus value.\u00a0Square, which went public in\u00a02015 at half its private market valuation, has since seen its share prices more than double.<\/p>\n

The company has raised more than\u00a0$1 billion<\/a>\u00a0since\u00a02008. Intel is the largest shareholder and owned 22 percent of the company prior to the IPO. Accel owned 16.3 percent and Greylock Partners owned 12.5 percent.<\/p>\n

Cloudera works with a range of enterprise clients, including banks and telecom companies. They also do some counterterrorism intelligence.<\/p>\n

\u201cOur customers are leveraging new data that they never had access to before to get better insight into their customers,\u201d said Riley.<\/p>\n

Cloudera\u2019s revenue\u00a0is growing, totaling\u00a0$261 million for the fiscal year that ended in January. The company brought in\u00a0$166 million at the same time last year.<\/p>\n

Losses were $186.32 million, down from $203 million in the same period\u00a0the year before. The risk factors section of the filing acknowledged\u00a0they\u00a0\u201cexpect to continue to incur net losses for the foreseeable future.\u201d<\/p>\n

Competition could ultimately become a big obstacle\u00a0for Cloudera, though Riley tells TechCrunch they are \u201cuniquely focused on the needs of large enterprise.\u201d HP, IBM, Oracle, Amazon Web Services and Hortonworks are amongst the long list of competitors mentioned in the S-1 filing.<\/p>\n

Intel and Cloudera have been working together to\u00a0improve the speed and also the security for data processing. The companies \u201cdesign software and hardware together to accelerate performance,\u201d said Riley. Intel is buying more shares in the offering.<\/p>\n

Morgan Stanley, JP Morgan and Allen & Company were the\u00a0underwriting banks on\u00a0the offering. The company\u00a0listed on the New York Stock Exchange, under the ticker \u201cCLDR.\u201d<\/p>\n

Featured Image: Peter Kaminski<\/a>\/Flickr<\/a> UNDER A CC BY 2.0<\/a> LICENSE (IMAGE HAS BEEN MODIFIED)<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"

\"\" After pricing its IPO at $15 per share, Cloudera, the enterprise big data company, closed the day up more than 20 percent, at $18.09. This also is above the range of $12 to $14 for which Cloudera was preparing. Read More<\/a><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

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