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Please write a one page summary and opinion on the following article. Ive attached an image of the article : Cloudera Files for IPO With
Please write a one page summary and opinion on the following article. Ive attached an image of the article :
Cloudera Files for IPO With S261 Million in Annual Revenue on in big-data software firm in 2014 ntel invested $740 m By ROLFE WINKLER Updated March 31, 2017 3:59 p.m. ET Big-data software company cloudera Inc. filed paperwork to go public on Frida revealing a business that is growing quickly but possibly not fast enough to deliver gains to its big investor Intel Corp. NTC +0.90% A Cloudera, based in Palo Alto, Calif., sells software and services that help customers analyze oceans of digital information flowing from networked devices, Its techn ogy 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 HDP 0.82% another ed to rival Hortonworks Inc. Cloudera will inevita be compar Hadoop software specialist with a different business model, that went public in December 2014. Based on where Hortonworks trades on the publie market, Cloudera's revenue and growth rate are unlikely to justify matching the s4.1 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 MORE TECH NEWS price has fallen over 60% since the first snapchat Launches New Search Tool in Quest for More Engagement March 2017 day of trading, pu ng SpaceX Chief Sets Out Benefits, Challenges ofReusing Rockets March 31, 2017 its market value Foxconn Posts First-Ever Annual Sales Decline a Phone Sales Lag March 3, 2017 down to just above Samsung, Apple intensify Batte for Smartphone Users March 3, 2017 $600 million Flaw in Latest OS Update March Apple Fixes 9 Compared with Cloudera, Hortonworks has about two-thirds the revenue, as well as a similar growth rate and gross profit margin. It on, excluding cash on its now trades at about three times last year's revenue of$184 m balance sheet. If investors use a similar valuation multiple on Cloudera, it could have a difficult time securing a value above $1 billion, depending on how much cash it raises in the IPO Like ks, Cloudera has tun up a big loss-s187 million in the latest year-spending Horton wor about three-quarters of its revenue on sales and marketing expenses A Cloudera spokeswoman declined to comment about the IPO filing. Cloudera is among a group of nearly 200 private-tech companies worldwide that raised money at valuations over $1 billion in the past few years. A flood of venture capital pushed startup valuations to new heights, and now some companies are struggling to meet the hype. Health-benefits broker Zenefits and audio equipment maker Jawbone had their valuations cut in halflast year, for example At least three US. tech companies-Snap Inc., Mulesoft Inc. and Alteryx Inc.-have gone public in 2017 following the slowest year for such offerings since2009. Those three companies are all trading above their private-market valuations, a positive sign for the steady drumbeat of tech startups filing for offerings. Another software startup, okta Inc., expects to price its own offering above its last private price. Cloudera has already valued itself much lower than its last private-market share price. Intel, which owns 22%, paid s30.92 a share in 2014. This month, Cloudera granted stock awards to employees at $17.85 a share, according to the filing, a 42% decline in value. As f December, Cloudera's mutual fund investors had marked down their estimate values of their shares to between s17 and $26, according to The Wall Street Journa Startup Stock Tracker. Early investors in the company wi kely do we on their investments, Venture firm Accel Partners, which owns 16.3% ofCloudera, first bought shares at 39 cents a share in 2008, and along with another early investor, Greylock Partners, sold a part ofits position to Intel at Cloudera's peak price. Greylock still owns 12.5% of Cloudera. In the year ended Jan. 31,Cloudera burned through $124 m on of cash, versus $95 million in the earlier period. The company had about $256 million in cash on its balance sheet as of Jan. 31, enough to fund operations for more than a year, even before any funds are raised in the IPO. It raised a total of $670 million in funding. cloudera filed to sell up to $200 million in stock, although that figure is typically a placeholder to calculate the registration fee and often changes. The company plans to list on the New York Stock Exchange under the symbol CLDR. Underwriters for the offering include Morgan Stanley, J.P Morgan and Allen & Co n 2008 by a group of engineers from Alphabet Inc.'s Google Cloudera was founded Facebook Inc., Oracle Corp. and Yahoo originated. Customers include MasterCard Inc which uses the technology to identify fraudulent merchants, and Marks & Spencer Group PLC, which uses its analytics system o gain insights from consumer behavio
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