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Tech company Cloudera files for IPO, looks to raise up to $200 million

Tom Reilly, chief executive officer of Cloudera.
Matthew Busch | Bloomberg | Getty Images
Tom Reilly, chief executive officer of Cloudera.

Technology firm Cloudera filed for its public offering on Friday amid a revival in the IPO market.

  • What they're hoping to raise: up to $200 million
  • Revenue: $261.0 million in the year ending Jan. 31, up from $166.0 million a year ago
  • Net loss: $187.32 million, narrower than the $203.14 million from a year ago
  • Underwriters include Morgan Stanley, JPMorgan, Allen & Company
  • Headcount: 1,470 employees as of Jan. 31, up from 1,140 employees the prior year

The firm will list on the New York Stock Exchange under the symbol CLDR, according to regulatory filings. The company is growing its sales and shrinking its losses, though it still lost $187.32 million last year amid "significant investments in research and development" and outlays for sales and marketing.

Cloudera has raised cash on the private market from investors like Intel and T. Rowe Price, and is estimated to be valued at $4.1 billion, according to CB Insights. Intel owns about 22 percent of the shares, while Accel and its affiliates own about 16.3 percent and Greylock owns about 12.5 percent.

The Palo Alto, Calif.-based company was founded by alumni from Oracle, Yahoo, Facebook and Google, and also boasts leadership from the co-creator Hadoop — of one of software developers' most beloved technology frameworks.

Cloudera specializes in one of the hottest fields for enterprise technology: Data science. It makes 77 percent of its money from subscriptions.

But the company faces what it calls "intense competition," both from enterprise technology companies like IBM and Oracle, and from cloud providers like Amazon and Microsoft that are bolstering their business intelligence offerings.

To grow its business, Cloudera has scooped up other start-ups including Gazzang and Xplain.io, it said. Cloudera said the company intends to continue to expand internationally after the IPO, and will use the proceeds for activities like sales and marketing, research and product development.

With rumors of the offering stretching back to 2014, Cloudera's IPO has been long-awaited. Cloudera rival Hortonworks, which priced its IPO at $16 a share in 2014, has since cratered and traded at less than $10 a share on Friday. (Hortonworks shares rose nearly 2 percent after Cloudera's filing was released).

But this year, tech IPOs like Snap, MuleSoft and Alteryx have primed the market. U.S. IPOs raised $9.9 billion during the first quarter of this year, according to Renaissance Capital, up from just $667 million in the year-ago period.

Having incurred net losses since its founding in 2008, Cloudera said it does not intend to pay any cash dividends on common stock in the foreseeable future.

The confluence of "big data," the rise of the cloud, and Google's search technology helped companies like Cloudera get started, Mike Olson, co-founder, chairman and chief strategy officer, wrote in a letter to investors.

"Google, Facebook and Yahoo had discovered big data before anyone else, but it was obvious that it was coming to banks, hospitals and other traditional companies," Olson said.