Kingsoft Cloud (KC) began trading on the Nasdaq on Fri 8 May 2020

Chinese cloud computing company Kingsoft Cloud Holdings Ltd raised $510 million in its U.S initial public offering, the first Chinese company to list in the United States since the coronavirus pandemic outbreak sent markets tumbling.

• Kingsoft Cloud (KC) closes its first U.S. trading day up 38% to $23.49.
• The company priced 30M ADS at $17 each, raising $510M in the offering at a roughly $3.7B valuation. The company originally planned to sell 25M shares but increased the size due to demand.
• Spun off from software giant Kingsoft.  KC competes with cloud services from tech giants Alibaba (BABA) and Tencent (TCEHY). Alibaba controls nearly half of China's cloud market and Tencent has about a fifth.

• Like other cloud services companies, Kingsoft Cloud could benefit from the new normal of remote working, gaming and learning online. While China's cloud market is only 4% of the global total, it is growing fast.
• Kingsoft Cloud boasts some heavy hitters as clients, including smartphone maker Xiaomi and ByteDance, the Beijing-based startup behind popular apps TikTok and Douyin. ByteDance has seen huge user growth and a record revenue haul during the pandemic.
• Kingsoft Cloud's chairman, Lei Jun, is no stranger to buzzy public offerings. He is the founder of smartphone maker Xiaomi, which raised $4.7 billion in a highly anticipated public offering in Hong Kong in 2018.

The cloud service provider had planned to sell 25 million shares but increased the size of the deal to 30 million on Friday on the back of better than expected demand from shareholders, parent company Kingsoft Corp said in a statement on Friday.

The deal represented 13.9% of the company's issued capital and was priced at $17 per share, in the middle of its expected range, valuing the Xiaomi-backed group at $3.7 billion.

Loss-making Kingsoft offers cloud infrastructure as well as enterprise cloud and artificial intelligence services.

Cloud computing has so far been one of the sectors boosted by the novel coronavirus outbreak as it drives more businesses to operate digitally and rely on cloud computing.

The value of the company will rise if a so called 'greenshoe' option is exercised and an extra 4.5 million shares are sold within the next 30 days by the banks which underwrote the deal.


Existing shareholders Kingsoft Group, Xiaomi and Carmignac Gestion anchored the IPO, with Kingsoft buying up to $25 million of the stock offered, and Xiaomi and Carmignac buying up to $50 million each, Kingsoft said.

Kingsoft is the first major U.S. IPO by a company that is neither a biotechnology firm nor special purpose acquisition company (SPAC) since Canadian waste management company GFL Environmental in early March. Biotech and SPAC IPOs are typically immune to broader market swings.

Cloudflare (NET) began trading on the NYSE on Fri 13 Sept 2019

CloudFlare specializes in a cloud-based network platform that promises security, enhanced performance of business-critical applications, and “eliminating the cost and complexity of managing individual network hardware”.

• Sector: Technology
• Industry: Software - Application
• Full Time Employees: 1,069
• Founded in 2009 
• HQ in San Francisco, California
• http://www.cloudflare.com

Shares hit high of $19.53 after pricing above range at $15. Closed up 20% at $18.

Cloudflare Inc. Co-founder and CEO, Matthew Prince, along with Co-Founder and COO, Michelle Zatlyn, joined by NYSE President Stacey Cunningham

Cloudflare Inc. Co-founder and CEO, Matthew Prince, along with Co-Founder and COO, Michelle Zatlyn

In August, Cloudflare dropped 8chan as a customer, condemning the unmoderated message board as “a receptive audience for domestic terrorists” following recent mass shootings, and this appears in the company’s “risk factors” section. Cloudflare noted that it was not the first time a customer elicited scrutiny after a violent attack.

The company also disclosed that it may have done business with individuals and entities tied with narcotics and terrorism according to the U.S. Department of the Treasury’s Office of Foreign Assets Control blacklists, and that it was introducing additional controls and screening to prevent similar activity occurring in the future.

Cloudflare’s IPO comes just a few months after cybersecurity company CrowdStrike (CRWD) went public in June. While CrowdStrike shares are trading 91% above their IPO price, the ETFMG Prime Cyber Security (HACK) is up 14% for the year and the Renaissance IPO ETF (IPO) is up 31%. The First Trust Cloud Computing ETF (SKYY) is up 19% for the year, compared with a 23% gain in the tech-heavy Nasdaq Composite Index COMP, -0.22%.

Cybersecurity has become a hot space recently as a buy or be bought mentality has crept into the year as VMware (VMW)  announced an acquisition of cybersecurity company Carbon Black (CBLK) Broadcom (AVGO)  made a bid for Symantec Corp.’s (SYMC)  enterprise business, and BlackBerry Ltd.’s (BB)  acquisition of Cylance in February.

Prince said an IPO has always been an implicit assumption at the company. As soon as you start taking venture capital money or start issuing options to employees, there’s an implicit signal that you’re going to have to turn that into something you can buy a house with or send a kid to college with, and that there was no pressure from early investors or employees, he said.

PagerDuty (PD) began trading on the NYSE on Thur 11 Apr 2019

PagerDuty offers a subscription service that allows businesses to improve the constant interplay between software developers and operators—so-called DevOps—within their organization and lets them use real-time data to address incidents that occur. Competitors include Atlassian Corp.’s (TEAM) OpsGenie and Splunk Inc.’s (SPLK) VictorOps products.

• The cloud-based digital management platform priced 9.1 mln share IPO at $24.00 per share, above the revised expected range of $21-23
• Shares of PagerDuty  surged more than 59% to close at $38.25 Thursday, giving the company a valuation of $2.82 billion, according to FactSet data. 
• PagerDuty was founded in 2009 by three former Amazon developers. In 2016, the company hired industry veteran Jennifer Tejada as its CEO. She owns about 6 percent of the company. The biggest investors are Andreessen Horowitz at 18 percent before the offering, followed by Accel at 12 percent.
• The so-called DevOps market is expected to reach $10.3 billion a year by 2023, up from $3.4 billion last year, according to research from MarketsandMarkets. Ethan Kurzweil, a partner at Bessemer Venture Partners, one of PagerDuty’s biggest investors, said that these sorts of developer tools are gaining importance as software becomes central to the way more companies do business.

Chief Executive and Chairwoman Jennifer Tejada, who owns a 5.7% stake in the company following the offering, said PagerDuty is looking to serve an estimated $25 billion market made up of about 22 million software developers whose job it is to make sure that every app on our phone or program on our PC is working the way it’s supposed to and cut down on downtime. Tejada said in a telephone interview with MarketWatch from the New York Stock Exchange that about 300,000 developers currently use the platform.

PagerDuty CEO Jennifer Tejada

PagerDuty, whose software helps technical teams quickly spot problems with applications and respond to incidents such as customer complaints, is used by developers at over 11,000 companies, including Slack, Box, Gap and Netflix. 

PagerDuty recorded a loss of $40.7 million on revenue of $117.8 million in the fiscal year ended Jan. 31, 2019, after a loss of $38.1 million on revenue of $79.6 million in the same period a year ago. The number of customers paying $100,000 or more a year for the service rose to 228 from 144 in the previous year.

PagerDuty planned to sell 8.5 million shares in the IPO, while selling stockholders offered 570,000 shares. Underwriters were offered options for an additional 1.36 million shares.

PagerDuty (PD) hikes pricing range ahead of IPO

PagerDuty (PD) late Tuesday hiked the pricing range for its initial public offering, according to a filing with the Securities and Exchange Commission.

The San Francisco-based cloud computing company set its pricing range at $21 to $23 a share, up from its previous range of $19 to $21 a share set on April 1. With a possible 10.4 million shares to be sold, including the nearly 1.4 million to cover overallotments, the company could potentially raise up to $239.9 million, giving the company a valuation of $1.72 billion.

Anaplan (PLAN) began trading on the NYSE on 12 October 2018

Anaplan is a cloud-based business planning and performance management platform based on a single hub where business users can create and use models.  In the Anaplan IPO prospectus, the San Francisco-based company calls itself a pioneer in a category it calls connected planning, helping companies make better and faster decisions.

• Founded in the United Kingdom, the company is now headquartered in San Francisco, CA.
• The software company brought on its chief financial officer just a few weeks ago.
• As of July 31, Anaplan had 979 customers using its platform. Customers include Coca-Cola (KO), VMware (VMW) and HP Inc. (HPQ)
• Founded: 2006
• anaplan.com

Anaplan opened for trading at $24.25 after IPO priced at $17.00

Frank Calderoni, president and chief executive officer of Anaplan Inc., center, rings the opening bell during the company’s initial public offering (IPO) on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Oct. 12, 2018. 

Anaplan shares jumped nearly 43 percent to $24.30 by the end of the first day of trading, giving the company a market capitalization of almost $3 billion. Anaplan said Thursday night that it raised $263.5 million in the offering, selling shares at $17 a piece.

CEO Frank Calderoni told CNBC’s “Squawk Alley ” that the company did not consider delaying the IPO amid the market rout, which sent the Nasdaq to its lowest close since May on Thursday. He said that business remains strong and that the company has almost 1,000 customers, including some companies with tens of thousands of users.

Anaplan benefited from a broader market rebound on Friday, with the Nasdaq climbing 2.3 percent.

Anaplan joins a crop of emerging software companies that have hit the public markets in 2018, including DocuSign, Dropbox, Elastic and Smartsheet. Market volatility hasn’t been of much concern for those companies, as tech stocks have generally trended up throughout the year. But this week’s turmoil led some companies to delay their offerings, most notably Tencent Music.

Founded in 2008, Anaplan sells cloud-based software that companies use for business planning. Competitors include IBM, Oracle and SAP.

In addition to leading the company, for a few months Calderoni also served as interim chief financial officer. Last month, Anaplan hired Dave Morton as CFO after a stint at Tesla that lasted just a few weeks.

Pivotal Software (PVTL) began trading on the NYSE on 20 April 2018

Pivotal Software, Inc. is a software and services company that accelerates and streamlines software development and modernizes legacy applications.
The enterprise cloud computing company has been majority-owned by Dell, which came about after its merger with EMC in 2016. It was spun off from Dell, EMC and VMware in April 2013. After that, it raised $1.7 billion in funding from Microsoft, Ford and General Electric.

• Headquarters: San Francisco, California
• Parent organization: Dell Technologies
• Number of employees: 2,518 (2017)
• pivotal.io
• Losses for fiscal 2018 stood at $163.5 million, improved from negative $232.5 million seen in 2017 and $282.5 million in 2016.
• Priced IPO at $15; raised $555 million

In the S-1 filing, Pivotal acknowledged that it faces competition from “legacy application infrastructure and middleware form vendors” like IBM and Oracle. The company says it additionally competes with “open-source based offerings supported by vendors” like RedHat. Pivotal also faces challenges from SAP Cloud Platform, Amazon Web Services and Microsoft Azure.

Zuora (ZUO) began trading on the NYSE on 12 April 2018

• cloud software company

Tien Tzuo, founder of Zuora

Zscaler (ZS) started trading on the Nasdaq on 16 March 2018

• 12.0 million (originally 10.0 million) shares priced at $16, above the upwardly revised range of $13-$15 (originally $10-$12). 
• The deal raised $192 million in gross proceeds, which is $82 million, or, 75% more than anticipated. 

OverviewZS is the developer of a security cloud platform which is distributed to more than 100 data centers helping them to accelerate their IT migration to the cloud. This includes the migration of applications from a corporate data center to the cloud, and from a legacy "hub-and-spoke" system (WANs) to an updated direct-to-cloud network. ZS' platform allows traffic to be routed locally and securely to the internet via broadband and cellular connections.

The company's two core services are:

• ZScaler Internet Access (ZIA): This solution securely connects users to externally managed apps, including SaaS applications, and internet destinations, regardless of device, location, or network. It is designed to ensure malware does not reach the user and valuable corporate data remains safe.

• ZScaler Private Access (ZPA): This service offers authorized users secure and reliable access to internally managed applications hosted in enterprise data centers or the cloud. The ZPA product connects a specific user to specific applications, without bringing the user on the network. This results in better security and is different from traditional remote access solutions like VPNs.

ZS has over 2,800 customers across all major geographies and its customer base spans every major industry. It implements a joint sales approach in which its sales force develops relationships directly with customers. It bolsters its sales presence by levering its network of telecom service providers, system integrators, and re-seller partners.

Financials
Looking at the financials, for FY17, revenue jumped by 56% to $156.4 million. The growth in revenue was driven by a 14% increase to its customer base, as well as sales of additional subscriptions to existing customers. This is reflected by its very healthy dollar-based retention rate of 115%.

Meanwhile, gross margin increased to 78% from 75%, due to better efficiency of its technology, infrastructure, and data centers, enabling technological improvements.

But, despite the strong revenue growth and rise in gross margin, its loss from operations widened to ($35.1) million from ($26.8) million in FY16. The cause is tied to a a 60% spike in Research & Development costs, due to increased headcount, and a 118% surge in General & Administrative costs. 

Address
110 Baytech Dr Ste 100
SAN JOSE, CA 95134-2302
United States - Map
+1-408-5330288 (Phone)
+1-302-6365454 (Fax)
Website  https://www.zscaler.com/

Tintri (TNTR) reported earnings on Thur 7 Sept 17 (a/h)

Tintri, Inc. is an American information technology company based in Mountain View, California. Tintri provides products designed for Enterprise Cloud, virtual machines, and containers.

• Founded: 2008
• tintri.com
• June 30, 2017 IPO

Tintri beats by $0.07, misses on revs; guides OctQ EPS in-line, revs below consensus

• Reports Q2 (Jul) loss of $0.91 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of ($0.98); revenues rose 26.5% year/year to $34.87 mln vs the $35.68 mln Capital IQ Consensus.
• Co issues guidance for Q3 (Oct), sees EPS of $(0.81)-(0.77), excluding non-recurring items, vs. ($0.79) Capital IQ Consensus Estimate; sees Q3 revs of $36-37 mln vs. $41.3 mln Capital IQ Consensus Estimate.
• "While the company's revenue came in at the low end of our expectations, we delivered stronger than projected profitability and cash flow improvements...We remain confident in our competitive position and in the strength of our value proposition."
• "In the quarter we received the largest order in the company's history and added new enterprise logos. Additionally, we experienced continued momentum in our land-and-expand strategy with more purchases from current customers. We enter the second half of our fiscal year having just announced a new all-flash platform and additional software offerings-these further enhance our differentiation and better enable our customers to transition to the enterprise cloud."

*******

Tintri provides an enterprise cloud platform that helps companies manage their storage and databases and automate IT tasks. The start-up is backed by investors like Lightspeed Venture Partners, New Enterprise Associates and Silverlake Kraftwerk.

With more than 1,300 customers, Tintri posted revenue of $125.1 million in the latest fiscal year, up from $86 million in the prior year. But the company also reported a net loss of $105.8 million last year, steeper than the $101 million loss in the previous year.

Tintri is one of several enterprise technology companies to go public this year amid a renewed interest in the IPO market. Cloudera (CLDR), Appian (APPN) and Alteryx (AYX) started trading in the first half of the year.

Key stats and ratios

	Q2 (Apr '17)	2017
Net profit margin	-101.07%	-84.57%
Operating margin	-96.49%	-80.56%
EBITD margin	-	-73.12%
Return on average assets	-121.84%	-80.44%
Return on average equity	-	-
Employees	561

Okta, Inc. (OKTA) began trading on Nasdaq on 7 Apr 2017

Okta offers Okta Identity Cloud, a platform that offers a suite of products to manage and secure identities

• Sector: Technology
• Industry: Software - Infrastructure
• Full Time Employees: 1,176
• Headquarters: San Francisco, CA
• Founded: 2009
• okta.com

Alteryx (AYX) began trading on the NYSE on 24 March 2017

Data analytics provider Alteryx (AYX) raised $126 million by offering 9 million shares at $14, the high end of the estimated price range of $12 to $14. The stock opened at 17.25 just before 10:30 ET on the stock market today, and subsequently dropped to 16.67 in its first minutes of trading.

• This is the 25th IPOs priced this year, up 212% from the same period a year ago, according to Renaissance Capital.

Alteryx defines itself as "a leading provider of self-service data analytics software." Its subscription-based software platform "enables organizations to dramatically improve business outcomes and the productivity of their business analysts," the company said in its IPO prospectus. "It allows organizations to easily prepare, blend, and analyze data from a multitude of sources and more quickly benefit from data-driven decisions."

Alteryx said it had more than 2,300 customers worldwide at the end of 2016, including Ford Motor (F), Nike (NKE) and Tableau Software (DATA), it said.

For 2016, Alteryx reported revenue of $69.76 million, up 61% year over year, with a net loss of $24.2 million, vs. a loss of $21.45 million in the previous year.

Address

3345 Michelson Dr Ste 400
IRVINE, CA 92612-7683
United States 

Website 

http://www.alteryx.com

Key stats and ratios

	Q1 (Mar '17)	2016
Net profit margin	-19.85%	-28.28%
Operating margin	-19.67%	-26.84%
EBITD margin	-	-24.85%
Return on average assets	-13.57%	-23.26%
Return on average equity	-111.24%

Coupa Software (COUP) began trading on the Nasdaq on 6 Oct 2016

Coupa Software Incorporated provides cloud-based business spend management platform.

• Sector: Technology
• Industry: Software - Infrastructure
• Founded in 2006
• Headquartered in San Mateo, California
• Full Time Employees: 1,202
• http://www.coupa.com

The ticker COUP was previously used  by Coupons.com (NYSE:COUP). The company changed its corporate name to Quotient Technology (NYSE:QUOT) in 2015.

The “spend management” software company priced its IPO at $18 and saw its shares almost double during its first day of trading.

With clients like Nike and Toyota, Coupa helps companies keep tabs on everyday expenditures and competes with divisions of Oracle and SAP. Founded a decade ago, they claim they’ve saved their customers $8 billion to date.

But they’re still not profitable. For the six months ending in July, Coupa lost $24.3 million, which compares to a loss of $25.1 million in the same period last year. Yet revenue is growing, up to $53.2 million from $31.6 million in the same time frames.