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Big data integrator Talend pops 54% in Nasdaq debut, raising $94.5M

ICE Graveyard 29/07/2016 Ingrid Lunden

French/American big data startup Talend made its debut as a public company today with a pop. After pricing its shares at $18 last night (above the expected range of $15-17), the company began trading on Nasdaq under the ticker TLND at $27.66, up 54% on its IPO price, giving the company an implied valuation of $537 million.

The offering at $18/share the night before raised $94.5 million and was above the company’s expected range of $15-17 and raise of $86.3 million.

Talend’s debut is encouraging news for those who have been wondering about the health of the tech IPO market. There have been very few listings this year, and while Twilio had a strong entry (and continues to pick up speed), Talend — which provides a platform for Hadoop or Spark integration and data management services, disrupting more traditional and costly data warehousing services — could be a sign of more positive reception for IPOs to come, particularly in the area of enterprise services. Some of the hopefuls that we’ve heard might be eyeing up public listings soonish include Dropbox, Okta and Puppet Labs.

This is also welcome news for those who wonder about how international startups might fare in U.S. markets at the moment. As a startup, Talend raised just over $100 million from the likes of Silver Lake but also a strong slate of French and European investors like Bpifrance, Balderton, Idinvest, and Iris Capital Partners. It was founded in France in 2005, and now has two headquarters, in Suresnes in the outskirts of Paris and Redwood City, CA.

And it’s a sign that investors are willing to invest in tech companies that are not immediately profitable. Talend competes against the likes of other public companies like Splunk and Hortonworks, but also privately-held businesses like Apatar and Jitterbit. It posted a net loss of $22 million last year on revenues of $76 million. Notably, that loss was level with the year before, while revenues were up from $62.6 million, meaning the company is growing and improving, slowly.

I’ll be speaking with CEO Mike Tuchen a little later and will  update this post when I do. Late last night, he pointed out that the company was still in its “early days.”

“Today is an important milestone which became possible, in part, because of our singular focus on enabling organizations of all types to become data driven – an increasingly necessary skill in a world where data has become a strategic asset,” he said in a statement. “As notable as today’s milestone is though, we are still in the early days of our journey. We’re looking forward to maximizing the opportunity we have in front of us and building our business for long-term success.

“With the amount of data available for decision making increasing exponentially, and the technology to analyze and act on that data more capable, cost-effective, and ubiquitous, IT infrastructures are undergoing an industrywide, transformative shift toward new big data and cloud platforms. Talend’s solutions are well-suited to address that exciting opportunity and help position us to extend our leadership role in next-generation data integration.”

This is one area where the IPO will help the company. This listing essentially doubles the amount of money that the company has raised to expand in its lifetime.

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