Talend IPOs on Nasdaq above market expectations

Talend, a 10-year old software company that specialises in open-sourced data management tools with a subscription-based premium model, raised $86+ million in an initial public offering (IPO). The lead underwriters include Goldman Sachs, J.P. Morgan, Barclays, and Citigroup.

The company said it issued 5.25 million American Depositary Shares at a price of $18 per share, above the $15-$17 range it originally declared, thus raising $94.5 million.

In 2014, Talend CEO Mike Tuchen said that the company could go public “sometime in the next couple of years.” The company trades on NASDAQ under the symbol TLND.

Talend’s competitive edge lies in the value of its data integration products which cost a fraction of tools sold by Informatica, Tibco, and enterprise software vendors like IBM, Microsoft, Oracle, and SAP. Talend customers include AOL, Citi, GE Healthcare, Groupon, Lenovo, Orange, Sky, and Sony.

Last year, Talend generated a total revenue of $76 million. Its subscription revenue grew 39% year over year, representing $62.7 million of the total. The company isn’t profitable: it reported a net loss of $22 million for 2015. In the first quarter of this year, Talend produced a $5.2 million loss on $22.7 million in revenue, up 33.5 percent year over year. For that quarter, 84 percent of the revenue derived from subscriptions; the rest resulted from professional services.

Talend started in 2005 and is headquartered in Redwood City, California. The company had 566 employees as of March 31. Investors include Bpifrance, Iris Capital, Silver Lake Sumeru, Balderton Capital, and Idinvest Partners.

The company offers cloud and on-premises versions of its software, which supports the Hadoop open-source big data software and is based on the open-source Apache Camel.