Haven't they been been posting pretty shitty quarterly statements for a few years now? They have a lot of money in the bank, so to speak, I'm sure, but it will catch up with them eventually.
As SpikeGronim mentioned, they are operating at a very small profit. Investors are starting to get wary about it so they need to do something to increase those numbers.
They earned $219M last year and $205M the year before. That's a top-line revenue growth rate of around 6% -- more common for an old-line company like IBM.
SaaS startups are supposed to have revenue growth >30% when they hit IPO, and the best ones have even higher -- Twilio had ~70%.
Profit:
Net loss
2012: (2.3M+)
2013: (0.7M+)
2014: (15.2M+)
$88M cash on hand - so they can afford to run at a loss for a few years while they grow the company. I guess it makes sense to go public and raise more cash while the market is hot.
I checked it out, and indeed. It went up from 10% a year ago to a fifth of the revenue. Impressive, but it is still an itching question how much of this is due to an AI/crypto bubble and a few big supercomputers coming online in coming years.
It's trading at about 6x revenue right now and even lower when looking at forward revenues.
Their growth is tremendous and are on a path to profitability. I get it - when the market are getting banged around like it is, there are few safe places. I just think the baby is being thrown out with the bath water in a lot cases. I'm using this to average down a bit and hold.
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