Cloudera IPO on Friday

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Investors will get a fresh crack at another cloud stock on Friday, as Cloudera (CLDR) makes its debut on the New York Stock Exchange (ICE).

The company raised $225 million, selling 15 million shares of its common stock at $15.00 per share. That topped the initial offering price range of $12 to $14 per share.

Founded in 2008, the subscription-based enterprise data company backed by Intel (INTC), was previously valued at $4.1 billion back in 2014. Now, with the IPO is valued at $1.9 billion, a significant decrease as investors temper their love for Silicon Valley unicorns.

“We did research on it and it’s not earning money. It’s burning through a lot of cash,” said Kathleen Smith, principal at Renaissance Capital. “It’s going to be a few years, but if they slowed down their investment in sales and marketing, they would be able to draw money to the bottom line. We think it will be three years before it gets to cash flow break even.” But due to Cloudera’s robust subscription revenue growth and recurring revenue, Smith believes investors will tolerate the big data company’s losses.

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