Cloud storage provider Tintri filed plans for an initial public offering that is expected to raise $100 million. The filing comes on the heels of the company posting a $105.3 million loss during its latest fiscal year.
The Mountain View, California-based company earlier this month filed its IPO intent with the Securities and Exchange Commission. There has been no date or price range set for the IPO.
Tintri provides flash-based and hybrid-flash array storage targeted at enterprise cloud deployments.
The company has secured more than $262 million in private funding since its formation in 2008. Those investors have included New Enterprise Associates, Menlo Ventures, Lightspeed Venture Partners, Insight Venture Partners, and Silver Lake Kraftwerk.
As part of its IPO filing, Tintri reported recent financial performance highlighted by revenue gains alongside growing loses. The company’s revenues surged from $50 million in 2015, to more than $125 million for fiscal 2017. However, net losses also grew from $70 million to $105.3 million over the same time period.
Venturedeal, which said it’s not financially connected with Tintri, claimed the IPO could be valued at around $100 million. However, the firm expressed “concern” with the company’s slowing revenue growth and “high cash burn.”
“The company is growing revenues at a rate that is typical of successful enterprise IT software firms at this stage,” wrote Donovan Jones from Venturedeal.com via SeekingAlpha. “However, the story is also typical in that growth rates are decelerating as the company exceeds $100 million in annual revenues. … Additionally, [Tintri] is burning through large amounts of cash to achieve those diminishing growth rates, indicating a less-than-efficient sales model as the company scales.”
Cloud storage startup Nasuni last year raised $25 million in funding, which pushed its total haul to $80.5 million. Competitor Panzura earlier this year raised $32 million in new funding, pushing its total investment raised to more than $80 million.
Flash Storage Market Surging
IDC reported the flash-based enterprise storage segment continues to post robust growth and is driving the overall enterprise storage market. During the first quarter, flash storage solutions generated $1.4 billion in revenues, which was a 75.7 percent year-over-year increase. The hybrid-flash array segment generated $2 billion in revenues accounting for 22 percent of the total enterprise storage market.
“Spending on traditional external arrays continues to slowly shrink while spending on all-flash deployments once again posted strong growth and helped to drive the overall market,” wrote Liz Conner, research manager for storage systems at IDC.