Tintri stock plunges as first results since IPO show mounting losses Hybrid and all-flash array supplier Tintri is haemorrhaging cash – the latest quarterly results show every $1 of sales costs it $1.50. And its been getting worse. In the previous quarter $1 of sales cost it $1.01. Revenues for its second fiscal 2018 quarter, ended July 31, were $34.9m, up 27 per cent on a year ago and 14.9 per …
Everyone has a dip after IPO.
Nimble dropped from $33 down to $8 dollars at one point as an example. Nutanix also had a blip but are recovering nicely.
Personally, I hope it picks back up and works out for them. Even though I've competed against them for years, it's not nice to see companies die slowly.
"Everyone has a dip after IPO.
Nimble dropped from $33 down to $8 dollars at one point as an example. Nutanix also had a blip but are recovering nicely."
True everyone has a dip however there are some significant differences between Tintri and the aforementioned companies.
Neither of these companies missed estimates in their first report as public entities! Both Nutanix and Nimble were growing well above Tintri rates. Both had/have significantly more cash reserves. Both had zero debt.
Tintri on the other hand has 80mil cash, 70mil debt, growth is slowing down very fast if we look at the guidance, have high sales turnover and they are about to put the lid on operational expenses which means they'll choke the top line even more.
In startup world it's well known that when a company IPOs, it does so with 2-3 quarters worth of guaranteed "beat-and-raises" to ensure it's off to a good start and keep that stock price high past the 6-9 month share lockup period. Any CFO worth their salt ensures this is the case when taking a company public.
Missing numbers on the first quarter of being a public company is a scary sign. With the mounting losses and debt hanging, it could very quickly become the next Violin Memory.
Let's hope that's not the case, as competition is good for customers and good for employees
Tintri has been haemorrhaging sales people since 2014/5: it's been a revolving door. The "great" IPO that saw a 6:1 reverse split only made matters worse. Klein has presided over all of it. He has now replaced the head of sales 3 times since 2013 and has zero empathy or understanding about selling what was a highly differentiated product to Enteprise customers. Looks like the Board is giving him yet another chance. What's the definition of insanity again?
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