Aug 28 Enterprise software start-up Hortonworks
plans to seek a public listing in 15 to 24 months, banking on
growing demand for data analytics, its chief executive said on
"We started the company from day one and how we structured
it with the goal and objective to build a public company," CEO
Rob Bearden said in an interview.
"The best case scenario would be in five quarters; the worst
case scenario would be in eight quarters," Bearden said, adding
that a sale would not be an option but declining to say if
Hortonworks had any suitors.
"We do not want to sell and we have made that very clear,"
The Palo Alto, California-based company is a Yahoo Inc
(YHOO.O) spin-off founded in 2011 by a team of software
engineers working on Yahoo's Apache Hadoop implementation.
Apache Hadoop is an open source software system designed for
crunching massive amounts of data and is used by the likes of
Facebook Inc (FB.O) and Twitter, as well as eBay Inc (EBAY.O)
and Amazon.com Inc (AMZN.O).
Hortonworks competes with start-ups Cloudera and Splunk Inc
(SPLK.O), which had an impressive stock market debut in April
The idea behind big data is to converge structured data
found inside databases and unstructured data found in social
networks, mobile devices, meters or sensors to identify patterns
or predict behavior.
According to IDC research, the global big data technology
and services market will grow at a 31.7 percent compound annual
rate with revenues reaching $23.8 billion in 2016.
Hortonworks, which has strategic partnerships with Microsoft
Corp (MSFT.O) and Teradata Corp (TDC.N), generates about 70
percent of its revenue from support subscription services. The
remaining 30 percent comes from training and consulting, Bearden
He declined to give a current revenue number but said
Hortonworks will have a run rate of a $100 million by next year
and that it will be profitable by that time.
The company, which is backed by venture capital firm
Benchmark Capital, has had three funding rounds and has so far
raised $103 million, Bearden also said.
Bearden said he hopes the technology it offers will
eventually become the industry standard and that Hortonworks
will grow into a company like Red Hat Inc (RHT.N), which
distributes the Linux operating system, or software maker VMware
Hortonworks has around 120 paying customers and is adding 30
to 40 per quarter, Bearden said.
(Reporting By Nicola Leske; Editing by Steve Orlofsky)
((Nicola.Leske@thomsonreuters.com)(+1 646 223 6134)(Reuters
Keywords: HORTONWORKS IPO/
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