- YouTube/CNBC/Mad Money
On Friday, big-data startup Talend will launch itself as a public company in this anemic year for tech IPOs, and many other tech companies will be watching how investors react.
Talend offers a service that helps a company take the data it stores in all sorts of apps and clouds, and cleans it up so that it can be used by popular big data software like Hadoop and Spark.
Talend was born a French company but its current headquarters are in Redwood City, California.
Its CEO, Mike Tuchen, joined in 2013. He was previously CEO of security company Rapid7 during its startup growth years, but left before its successful IPO in 2015. He cut his teeth at Microsoft.
The cofounders, Bertrand Diard and Fabrice Bonan still have stakes in Talend, but were out not too long after Tuchen joined. (They are doing a new startup called Influans according to their LinkedIn profiles.)
Talend has raised over $100 million in venture funding. It had 2015 revenues of nearly $76 million and a loss of $22 million. Its first quarter revenue for 2016 was up 42% over the year-ago quarter.
This is a modest IPO. The company plans to sell 5.3 million shares, is expected to price them between $15 – $17 and hopes to raise about $84 million.
Even so, the whole Valley will be watching.
A slow, but mostly successful, year
So far, there’s been only a handful of previous startups to go public in 2016 and things went well for them.
This includes Twilio, whose IPO was so hot for so many days, that it was hailed as a cure for the tech IPO blues. Twilio was so hot after its IPO that when CEO Jeff Lawson attended the Fortune Brainstorm conference in Aspen earlier this month, people kept stopping him to take selfies, as if that IPO magic could rub off by association in a photo.
Part of the excitement was because Twilio is not yet profitable. The company offers a messaging/communication service for software developers (it’s what Uber uses to send you a text, for instance). Its IPO busted the myth that public investors have grown weary of the Valley’s crop of highly valued startups that have chosen to grow revenues at the expense of profits.
And Twilio’s stock is still trading at about $40, way above its opening price of $15.
Then came Acacia Communications, maker of optical networking equipment, which also had a successful IPO. Acacia was profitable. Its stock popped 36% on Day 1 and is at nearly $60, well above its opening price of $23.
Earlier this month, Japanese mobile-messaging app Line went public with success, too, the biggest IPO of the year, raising about $1 billion for the company, which is not yet profitable. It popped 32% on opening day before settling in close to its opening share price of $42.
This after the year started out poorly, with Dell’s spin-out company, SecureWorks, dropping its planned share price and the number of shares it sold, with prices staying soft on opening day.
So, if Talend’s modest IPO does well, that’s a good sign.
There are a whole bunch of Valley companies waiting in the wings, wanting to proceed with their own IPOs like Nutanix, Okta, Insidesales.