API integration specialist Apigee has indicated that the company would like to begin migrating from a privately held company to a publicly traded stock. Reports from sources indicate that Apigee has enlisted the services of Morgan Stanley and Credit Suisse Securities in order to begin the process of becoming publically traded. Apigee has also filed its IPO with the Security and Exchange Commission seeking out $87M in investment.
Apigee has been around for over a decade and the company has acquired some $200M in funding during that time. Apigee has an impressive list of clients. Apigee has servered eBay, Equinix the BBC and others. Some financial analysts question Apigee’s long term viability, since Apigee mentions that the company lost some $26.8M in the last 6 fiscal months of 2014.
Although Apigee lost money, the revenue of the company has steadily increased since 2012. In 2012, Apigee reported that it brought in $36.7M in revenue. Compare that figure with the $63.8M Apigee brought in during the 2014 fiscal year.
In Apigee’s S-1 filing, the API specialist writes, “We believe that application programming interfaces, or APIs, are a critical enabling technology for the shifts in mobile, cloud computing, big data and the IoT and that APIs are a foundational technology on which digital business operates. We believe that a new and expansive market opportunity exists to help enterprises adopt digital strategies and navigate the digitally driven economy.”
The filing goes on to say, “Today, it is difficult for many businesses to fully participate and innovate in the digital world because traditional enterprise software is not designed to interact with and connect to the rapidly evolving digital economy. The IT architectures deployed at most businesses are based on thousands of application servers communicating with databases, other applications and numerous middleware layers, each using thousands of custom integrations and connectors. These legacy architectures generally cannot publish APIs in a way that can be used by application developers.”