Markets: LinkedIn Spinout Confluent Files For IPO

Confluent, a data software company spun out of LinkedIn, has filed for an initial public offering. It has unveiled its…

Confluent logo

Confluent, a data software company spun out of LinkedIn, has filed for an initial public offering. It has unveiled its S-1 filing with the US SEC, showing its plans to list on the Nasdaq stock market.

  • Confluent sells software that developers can use to quickly move around data for use inside applications. Its software is based on the open-source Apache Kafka framework.
  • Confluent started inside of LinkedIn where the Apache Kafka framework was developed. It spun out of the Microsoft-owned company in 2014.
  • Many companies have built strong businesses around open-source software and Confluent is the latest in that prospect. Its S-1 filing shows that of a healthy company with fast-growing revenues.

By the Numbers

  • Confluent had $237mn in revenue in 2020, up from $150mn in 2019. In the three months ended March 31, 2021, the company had $77mn in sales, up 51% year-over-year.
  • Confluent isn’t profitable on a net basis but at least has fast-growing sales to justify its losses. It reported respective net losses of $95mn and $230mn in 2019 and 2020.
  • Confluent reports having 2,500+ enterprise customers, including 560 each paying at least $100k annually and 60 each paying at least $1mn. 

Highlights
  • Confluent is a major success in its right. It’s a seven-year-old startup that’s grown rapidly on the backs of nearly $500mn in venture funding. That venture funding has helped the company sustain itself as it racked up losses due to big growth investments.
  • Confluent was valued at $4.5bn from its most recent funding round in April 2020. Its investors include Benchmark Capital (15.3% pre-IPO stake), Index Ventures (13%), and Sequoia Capital (9.3%).
  • Other major Confluent shareholders include co-founders Jay Kreps (12.6% pre-IPO stake), Jun Rao (10.6%), and Neha Narkhede (1.6%). 
  • Confluent will list on the Nasdaq stock market under the “CFLT” trading symbol.

More on IPOs;

Leave a Reply

Your email address will not be published. Required fields are marked *