HDP’s main competitor Cloudera to go public at 4.1 Billion valuation. This works out revenue to sales multiple many times HDP, while companies are growing at similar rates. Don’t have all the adjusted numbers, but looks the two companies are very similar. If Cloudera IPO is successful, HDP certainly deserves a much higher valuation.
https://techcrunch.com/2017/04/03/clouderas-ipo-will-test-un…
HDP’s main competitor Cloudera to go public at 4.1 Billion valuation.
http://news.morningstar.com/all/dow-jones/us-markets/2017033…
Hortonworks’s share price has fallen over 60% since the first day of trading, pulling its market value down to just above $600 million. Compared with Cloudera, Hortonworks has about two-thirds the revenue, as well as a similar growth rate and gross profit margin. It now trades at about three times last year’s revenue of $184 million, excluding cash on its 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 Hortonworks, Cloudera has tun up a big loss – $187 million in the latest year – spending about three-quarters of its revenue on sales and marketing expenses.
More Info on the comparison:
Hortonworks Cloudera
Subscription Revenue $126,689K $200,252K
Professional Services $57,772K $60,774K
Total Revenue $184,461K $261,026K
HDP’s market cap is about $612K for a Price/Revenue of 3.32.
Applying that same P/R to Cloudera’s revenue yields $865,680K, which is a far cry from the $4,100,000K estimated for Cloudera back in 2014.
The above is from: https://www.cbinsights.com/blog/cloudera-ipo-valuation/?utm_…, which also points out that MapR Technologies is also apparently looking to go IPO, but my guess is they’ll wait to see how Cloudera does. Who’d have thunk this would be such a crowded space?
I wrote:
HDP’s market cap is about $612K for a Price/Revenue of 3.32.
that should be:
HDP’s market cap is about $612,000K for a Price/Revenue of 3.32.