What happens at new all-time highs in the stock market? Outside of everyone seeming to be more happy, you generally start to see more market-sensitive initial public offering filings and pricings. Now a company called Yodlee, Inc. has filed for an initial public offering.
Yodlee is a technology and applications platform for digital financial services in the cloud, and its main effort is the Yodlee Financial Cloud. Customers range from financial institutions to Internet service providers to third-party financial app developers. The company claims to have over 750 organizations in more than 10 countries using the Yodlee platform – giving it subscription fees for 15.7 million covered consumers that it calls paid users.
No financial terms have been set for the IPO, other than that the initial S-1 filing shows that the filing amount os for up to $75 million in stock. That can of course change. Yodlee intends to list on the NASDAQ Global Market under the “YDLE” stock ticker.
One impressive thing about the IPO is the lineup of underwriters who are in the syndicate. Yodlee lists Goldman Sachs, Credit Suisse, and BofA Merrill Lynch as the joint book-runners. UBS and Pacific Crest are also in the syndicate.
Yodlee’s 2013 revenues grew by 21% to $70.2 million, and its subscription revenue grew by 28% as a time that there was a 1% decrease in professional services and other revenue. Still, revenue rose by 28% to $19.8 million in the first quarter of 2014 – as subscription revenue grew 34%. Yodlee also shows that a substantial portion of its revenue came from recurring subscription and support revenues. The company said,
“We generate revenues primarily from subscription and support fees and professional service fees. Subscription and support revenue has been a growing majority of our revenues and accounted for 81% and 85% of our revenue during the year ended December 31, 2013, and the three months ended March 31, 2014, respectively.”
There is one key takeaway here – zero profitability! The company’s IPO filing went on to say,
“Except in 2010, we have not been profitable on an annual basis since our formation. We experienced a net loss of $2.1 million, $6.5 million and $1.2 million for the years ended December 31, 2011, 2012 and 2013, respectively, and $1.6 million and $0.6 million for the three months ended March 31, 2013 and 2014, respectively. As of March 31, 2014, our accumulated deficit was $350.9 million.”
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Another oddly-named Web 2.0 or Web 3.0 company is coming public.
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