November 05, 2012
SugarCRM Weighing an IPO for Next Year
By Tracey E. Schelmetic
Cloud-based enterprise software provider SugarCRM, which provides customer management software that competes with Salesforce.com (News - Alert) and Oracle, may join the enterprise computing IPO party and go public as soon as next year, according to company CEO Larry Augustin.
“Our goal is to be a public company,” Augustin told Bloomberg News’s San Francisco bureau. “There’s a chance we can get there in 2013.” Augustin added that the Cupertino, California-based company is ready to “burn some cash.”
The news comes just weeks after Workday, another enterprise software vendor, executed a hugely successful public offering, reported GigaOM today. Other companies in this market space that have gone IPO recently include Splunk (News - Alert) Inc. (SPLK), ServiceNow Inc. and Palo Alto Networks Inc.
SugarCRM is reporting rapid growth. Billings, or the amount invoiced to customers, rose 23 percent for the third quarter ending in September from a year earlier, and are up 54 percent over the first nine months of this year, according to the company. The company plans to announce those results next week. As of today, approximately 800,000 users run a free, open-source version of SugarCRM (News - Alert) and nearly 200,000 pay for versions that cost between $30 to $100 per user each month. SugarCRM’s customers can pick from versions that run on their own computers, in a “private cloud” managed through a partnership with International Business Machines Corp., or an online version hosted by Sugar.
The company has been successful in raising venture capital funds. It has received $79 million from New Enterprise Associates, Silicon Valley Bank, Draper Fisher Jurvetson and others, including a $33 million round in April of this year.
Edited by Brooke Neuman