Rally Software Development Corp. has joined the ranks of cloud-focused companies wanting to come public. The cloud software company filed to raise up to $70 million in an initial public offering via the sale of common stock. The underwriting group includes Deutsche Bank Securities, Piper Jaffray, Needham & Company, JMP Securities and William Blair.
No financial terms were set as of yet other than the initial filing. Rally will trade under the stock ticker RALY on the New York Stock Exchange.
The cloud players intends to use the net IPO proceeds for working capital and other general corporate purposes. These uses include investing in its data center infrastructure, expanding its sales force and increasing its international presence. In addition, the company said that opportunities may exist from time to time to expand its current business through acquisitions and investments in other companies, products or technologies. The company's description is as follows:
Rally Software is a leading global provider of cloud-based solutions for managing Agile software development. Our platform transforms the way organizations manage the software development lifecycle by enabling close alignment of software development and strategic business objectives, facilitating collaboration, increasing transparency, and automating manual processes. Organizations use our solutions to accelerate the pace of innovation, improve productivity and more effectively adapt to rapidly-changing customer needs and competitive dynamics. Our enterprise-class platform is extensible, cost-effective and designed to be easy to use. Agile is a software development methodology characterized by short, iterative and highly-adaptable development cycles. Since its introduction in 2001, organizations have increasingly adopted Agile.
As of October 31, 2012, Rally claimed to have 154,982 paid users and more than 1,000 customers, including 36 of the Fortune 100 companies.
From fiscal 2011 to fiscal 2012, its subscription and support revenue grew from $19.9 million to $31.1 million for some 56% year-over-year growth. For the nine months ended October 31, 2011 and 2012, its subscription and support revenue grew from $22.2 million to $31.4 million. Rally Software primarily sells its solutions through one-year subscriptions and it claims that its renewal rate among existing customers was 129% when considering paid seat non-renewals, upgrades and downgrades. From fiscal 2011 to fiscal 2012, its total revenue grew from $29.7 million to $41.3 million for some 39% year-over-year growth rate.
FULL SEC FILING
Filed under: 24/7 Wall St. Wire, IPOs & Secondaries, Software, Technology, Technology Companies