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Investment Opportunities

HashiCorp IPO: What Investors Should Know About HCP Stock

The HashiCorp IPO is coming to the market. The tech giant will trade on the Nasdaq exchange under the ticker HCP. Here’s a breakdown of the filing…

HashiCorp IPO: About the Business

HashiCorp IPO

HashiCorp develops cloud infrastructure management software. The company offers solutions that provide a consistent cloud operating model that can build, secure, connect and deploy any infrastructure for any application. Since its founding, all the company’s core technologies are free to download.

Today, HashiCorp has nine open-source tools in its portfolio. This includes…

  • Infrastructure
    • Terraform, Multi-Cloud Infrastructure
    • Packer, Multi-Cloud Image Automator
  • Networking
    • Consul, Multi-Cloud Networking
  • Security
    • Boundary, Identity Access Management (IAM) Tool
    • Vault, Multi-Cloud Security Tool
  • Applications
    • Vagrant, Multi-Cloud Virtual Software Tool
    • Nomad, Multi-Cloud Orchestration
    • Waypoint, Developer Application Tool
    • Sentinel, Code Framework for HashiCorp Enterprise Products

These tools are available as free, open-source services geared toward individual developers or start-ups. The company also offers enterprise editions of these tools that come with additional features.

HashiCorp is a leading provider of multi-cloud infrastructure automation. The company helps developers manage their cloud infrastructure across major public clouds, including Amazon, Microsoft and Google.

HashiCorp sees this as a massive opportunity. Armon Dadgar, co-founder and CTO of HashiCorp, said…

It took these big enterprises five years just to be comfortable with the idea of public clouds, but they got there, and they started that migration. But most of these folks, they don’t have enough operational staff with the experience to run these services at scale, and even if they did, those people are best spent focusing on other business value rather than operating infrastructure.

HashiCorp works with SaaS vendors, enterprise software companies, cloud service providers, game developers, mobile app developers and IT support organizations. So, how has the pandemic affected the company?

HashiCorp IPO is Strong Despite COVID-19

While the effects of the pandemic harmed business all around, HashiCorp escaped the worst of it. Moreover, the company already favored operating “remote-first” before the impacts of the pandemic hit.

Furthermore, HashiCorp’s systems are set up to operate without people in the offices. Because of this, the company was able to function through the shutdowns with little impact.

The company used COVID-19 as an opportunity to offer critical services on a scale like never before. The company made several efforts to remove the operational and economic burden that IT operations teams faced working remotely. This included offering its Terraform Cloud’s Team & Governance features at no cost for organizations providing COVID-19 aid and assistance.

HashiCorp’s finances reveal the company’s growth. However, the HashiCorp IPO filing revealed consistent losses. Let’s take a look…

HashiCorp Finances Reveal Growing Revenue and Consistent Losses

Detailed financial information is in the HashiCorp IPO prospectus, allowing you to gain more insight into the company’s finances. Furthermore, if you’re in the market for HCP stock, let’s look at the details.

HashiCorp highlights some key information for investors. The company’s profit and loss statement and balance sheet data are as follows…

Revenue: HashiCorp has grown its total revenue. For the 2019 fiscal year, HashiCorp recorded $121.3 million in total revenue. In 2020, total revenue grew to $211.9 million. Furthermore, for the nine months ended October 2021, total revenue stands at $224.2 million.

Net Income (Loss): HashiCorp has reported consistent losses. The company recorded $53.4 million and $83.5 million for the 2019 and 2020 fiscal years. For the nine months ended October 2021, net losses stand at $62.4 million.

Total Assets and Liabilities: HashiCorp’s total assets grew from $253.1 million in January 2020 to $445.3 million in January 2021. However, as of October 2021, HashiCorp’s total assets went down to $418.9 million. Furthermore, HashiCorp’s total liabilities have grown. In January 2020, total liabilities stood at $159 million. However, by October 2021, they grew to $245.9 million.

Cash: HashiCorp’s cash flows recently dropped. The company recorded $110.5 million in cash as of January 2020. A year later, cash grew to $270.8 million. However, as of October 2021, HashiCorp has $218.2 million in cash.

The unicorn’s last valuation stood at $5.1 billion in 2020. After all, the company is well-positioned to take advantage of the booming IPO market this year. Let’s see how much the HashiCorp IPO can raise…

HashiCorp IPO to Trade Under HCP Ticker

HashiCorp filed on November 4 and set its terms on November 29. The company will begin trading on December 9. HashiCorp will trade on the Nasdaq exchange under the ticker HCP.

The HashiCorp IPO could raise up to $1.1 billion. The company is offering 15.3 million shares of common stock priced at $68 to $72 per share. Underwriters are able to purchase an additional 2.3 million shares.

At the midpoint of the proposed range, HashiCorp would command a fully diluted market value of $14.2 billion. Furthermore, HashiCorp’s IPO pricing could give it one of the richest valuations of any technology company.

Morgan Stanley, Goldman Sachs and JP Morgan are leading the HashiCorp IPO.

While HashiCorp hasn’t hit the market yet, you can check out the top tech IPOs of 2021 here. Moreover, Stripe and Rivian are two popular companies that hinted at going public soon.

As always, make sure to research before you invest. IPOs can be volatile for the first few months and share prices are constantly changing. Furthermore, if IPO investing interests you, check out our top recent IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and filed IPOs.


About

Aimee Bohn graduated from the College of Business and Economics at Towson University. Her background in marketing research helps her uncover valuable trends. Researching IPOs and other trends has been her primary focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphic design or traveling with friends.

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