business

HashiCorp Aiming for $13 Billion Valuation in IPO, According to Updated Prospectus

HashiCorp
  • HashiCorp, a developer of software for managing cloud infrastructure, said on Monday that it plans to sell shares in its IPO for $68 to $72 each.
  • The "remote-first" company is poised to cash in on a booming market for high-growth cloud software companies.
  • Revenue in the latest quarter climbed 49% to $82.2 million, while the company's net loss widened to almost $22 million from $9.3 million a year earlier.

Cloud software vendor HashiCorp updated its IPO prospectus on Monday, disclosing plans to sell shares at a price that would value the company at up to $13 billion.

HashiCorp, which was last valued in the private market at $5.1 billion in 2020, is poised to capitalize on a booming IPO market that's putting a premium on high-growth software companies, even if they're racking up losses.

The company helps developers manage their cloud infrastructure across the big public clouds operated by Amazon, Microsoft and Google. Its technology lets clients manage their security, networking and applications in centralized locations.

The Covid-19 pandemic did little to set back HashiCorp, which is based in San Francisco but considers itself "remote-first," with a globally distributed workforce of 1,500 people. Like GitLab, a remote company that went public last month and is now valued at about $14 billion, HashiCorp was able to power through the shutdowns because its systems were already in place to operate without people in offices.

Revenue in the year ended January surged 75% to $211.9 million. In the most recent quarter, which ended Oct. 31, revenue climbed 49% from a year earlier to $82.2 million. However the company's net loss widened to almost $22 million from $9.3 million a year ago as the company ramped up spending on sales and marketing.

HashiCorp said it plans to sell shares at $68 to $72 each. At the top end of that range, the IPO would value the company at almost $13 billion, based on an outstanding share count of 179 million. The price range could increase before the share sale.

The company will trade on the Nasdaq under ticker symbol "HCP" after originally stating its plan to list on the New York Stock Exchange

Correction: A prior version of this story failed to note that the company switched its planned listing from the NYSE to the Nasdaq.

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