HashiCorp Files for IPO, Revenue Jumps by 49% in Q2

A San Francisco-based software company HashiCorp appears ready to prove its maturity, as it has recently filed to go public, as it becomes the latest private company trying to go for an IPO this year.

As a sign of growth, HashiCorp, whose software serves developers in cloud infrastructure management, would go public via an IPO on the New York Stock Exchange (NYSE) and trade under the $HCP ticker. Morgan Stanley, Goldman Sachs, and JPMorgan would lead the underwriters on the initial public offering.

HashiCorp provides open-source tools and commercial products that enable developers, operators, and security professionals to provide, secure, run and connect cloud-computing infrastructure. With its IPO, it means the private company wants to list its shares on a stock exchange, making them available to the public for purchase.

This would bring the company’s shares to the public. It expected that its stocks would grow alongside the company’s revenue meaning when the company is profiting; the stock value would increase, giving its investors the deserved profits. However, if otherwise, the value of the stocks would also plummet.

Founded in 2012 by Mitchell Hashimoto, and an expert in cloud-based versions of open-source software, such as Terraform, which is used for building infrastructure and setting up Vault for password management.

As of 2020, HashiCorp’s last valuation in the private market stood at $5.1 billion. Mayfield and GGV Capital were among its top investors then.

Per available information, the software company currently serves over 2000 customers ranging from Microsoft’s GitHub subsidiary,  Fox to General Motors and Stripe. Notably, it is competing against major powerhouses like IBM, VMware and cloud providers, Amazon, Microsoft and Google for a share in the market.

According to its 2021 second-quarter revenue, there was a  49% increase to $75.1 million, from around $59.5 million that was recorded during the same period in the previous year. Aside from that, it was revealed that 98% of its sales came from subscriptions to its services.

Its entry into the stock market would make it join the growing number of fast-growing software businesses that investors are passionate to pay sky-high prices for. You would recall that a fully-remote provider of developer collaboration tools, GitLab, recently went public. Its market cap is nearly $16 million and secured $58.1 million in revenue in its recent quarterly earnings. 

Aside from GitLab, Toast also recently went public and it is now worth over $30 billion. Toast is a company that provides software, hardware, and payment products to restaurants.