Hortonworks shares are tanking after news of secondary stock offering
Thomson Reuters
Hortonworks, founded by a group of ex-Yahoo engineers, sells data processing software built on a popular framework called Hadoop.
It went public in December 2014 and has a market cap of around $600 million.
Secondary offerings are usually done to raise additional cash at the expense of the shareholders giving up more ownership. It leads to dilution of their existing ownership, and is often received negatively by the market.
Hortonworks also released fourth quarter earnings guidance that were better than street expectations last week. It expects revenue between $37 million to $38 million, while analysts are projecting $35.2 million, and EBIDTA loss in the range of $16.8 million to $17.5 million, right within the range of analyst projections of $17.4 million.
Hortonworks is one of the early pioneers in the Hadoop big data analysis space. Its competitors like Cloudera, which was last valued at roughly $5 billion, are also expected to go public soon.
Hortonworks will announce earnings on February 10.
- I quit McKinsey after 1.5 years. I was making over $200k but my mental health was shattered.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- Why are so many elite coaches moving to Western countries?
- Global GDP to face a 19% decline by 2050 due to climate change, study projects
- 5 things to keep in mind before taking a personal loan
- Markets face heavy fluctuations; settle lower taking downtrend to 4th day
- Move over Bollywood, audio shows are starting to enter the coveted ‘100 Crores Club’