Venture-backed enterprise cloud provider Tintri announced its IPO last week amidst a relatively strong period for tech offerings.
In the “risk factors” of the filing, the nine-year-old Mountain View, Calif.-based startup notes “a history of losses,” warning that the company “may not be able to achieve or maintain profitability.” Tintri’s accumulated deficit stands at $338.7 million. Sales in latest fiscal year of $125.1 million compared to a loss of $105.8 million, an improvement from the previous year’s ratio with revenue of $86 million and losses at $100.1 million.
The company which provides all-flash architecture similar to the public cloud to manage enterprise and cloud native applications, predicts its operating expenses will increase “substantially in the foreseeable future.” Tintri says it will make additional hires, develop new technology, invest in its distribution channels, sales and marketing teams, and enhances its product and service offerings as it prepares to become a public reporting company.
The maker of products for virtual machines and containers acknowledges that it faces heated competition from established data center players such as Dell Technologies and Dell-owned EMC, IBM, NetApp and VMware. On the flash storage front, Tintri will head off against rivals such as Nimble Storage, HP Enterprise and recently made public companies Nutanix and Pure Storage.
Soon to be TNTR on the Nasdaq has raised $260 million since 2011, bringing its valuation in the latest funding round to $785 million. The firm lists over 1,250 enterprise clients and 21 of the Fortune 100 companies including NASA, MillerCoors, Toyota and The Carlyle Group.
Backers include New Enterprise Associates (NEA) with a majority 22.7% ownership stake, while Silver Lake has rights to 20.4%, Insight Venture Partners owns 20.2% and Lightspeed Venture Partners maintains 14.5%.
Morgan Stanley and Merrill Lynch will lead the offering, with timing suggesting Tintri is aiming for its debut in late June to early July.