Apptio

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01
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Part
01

Apptio - Company Financials

Apptio had a revenue of $129 million in 2015, $161 million in 2016, and $188.5 million in 2017. The company predicted a total revenue of at least $233.3 million in 2018. Apptio's net loss was $41 million in 2015, $32 million in 2016, and $26 million in 2017. Its research and development expenses in 2015 and 2017 amounted to $30.55 million and $40.3 million respectively while its sales and marketing expenses amounted to $71.36 million in 2015, $80.2 million in 2017 and $94.7 million in 2018. Below is an outline of its revenue, net loss, and expenditure.

RESEARCH STRATEGY:

In order to find Apptio's annual revenue, expenditure, and net income/loss over the past three years, we first examined the company's website. Its press releases section led us to some of its quarterly earnings for 2018, however, we were unable to find earnings for the fourth quarter. Next, we looked for the company's status, that is, whether it is private or public. We found that the company went public in 2016 but was acquired by Vista Partners and removed from the stock market in January 2019. Therefore, its annual reports were removed as well. Fortunately, its earnings were still reported in financial news websites like Macro Trends. Through these websites, we found Apptio's revenue and net income/loss for 2015 to 2017. To find the company's expenditure, we carried out more extensive research and found its 2016 SEC filings. This helped us get its operating expenses on R&D and sales and marketing for 2015 alone. Since more recent figures needed to be found, we looked for transcripts of conference calls regarding its financials. We came across a recent conference call transcript on Barrons. Although this website was obstructed by a paywall, we were able to carefully read its grayed out content. There, we found that in October 2018, Apptio reported its third quarter earnings for 2018 and revealed more financial data such as 2017 revenue and operating expenses. The company also revealed its earnings expectations for 2018. Unfortunately, no net loss/income expectations for 2018 was mentioned. Apptio has not released its fourth quarter earnings and might not do this due to the fact that it is now back to being a private company.
Part
02
of two
Part
02

Apptio - Acquisitions

Within the past four years, Apptio has only acquired two companies, FittedCloud and Digital Fuel. Both companies were acquired in 2018. Digital Fuel was bought out for $42.5 million while FittedCloud was acquired for an undisclosed amount. The requested information on these companies has been entered into the attached spreadsheet.

Digital Fuel

  • Digital Fuel was acquired by Apptio on February 2nd, 2018.
  • As reported by Apptio, Digital Fuel was acquired for $42.5 million.
  • Digital Fuel was owned by Skyview Capital prior to its acquisition.
  • Apptio acquired Digital Fuel to increase its share of the Technology Business Management market.
  • Founded in 2000, Digital Fuel offers service level management and IT financial management products and solutions.
  • Although now owned by Apptio, Digital Fuel is still an "independent business unit."
  • As part of the acquisition terms, customers of Digital Fuel will have access to the Apptio's innovative product offerings.

FittedCloud

  • Apptio acquired FittedCloud on October 3rd, 2018.
  • The amount FittedCloud was acquired for has not been made known to the public.
  • FittedCloud was founded in 2015 with a vision to combat one of the main issues in the public cloud management space.
  • According to Apptio, while the deal will strengthen its capabilities, it is not substantial enough in terms of financial reporting.
  • The co-founder of FittedCloud, Prakash Manden, is now the Vice President of Cloud Engineering at Apptio.

Additional Information

  • Apptio has only acquired three companies since its initiation in 2007.
  • On December 12, 2012, Apptio acquired Raveld, a cloud computing company, for an undisclosed amount.
  • Apptio's acquisition of Digital Fuel was its largest acquisition deal.
  • Apptio went public on September 23rd, 2016 but was acquired by Vista Partners on January 10, 2019, for $1.94 billion.
  • The terms of the acquisition requires Apptio to still keep operating independently.
  • After the acquisition, Apptio "common stock stopped trading" and has been taken off the NASDAQ stock market.

RESEARCH STRATEGY:

In order to find a list of companies Apptio has acquired over the past four years, we first prioritized Crunchbase, a company insights platform. There, we found that Apptio has only acquired two companies in the specified period and three companies in total since it was founded. No financial information regarding the acquisition deals was provided on the platform. To confirm that Apptio has only acquired two companies in the last four years and to find the cost of acquisition for these companies, we proceeded to scour its website. Apptio had a page for press releases. After going through news and press releases within the last four years, we confirmed our initial findings on the company's acquisitions. Its press releases mentioned that it has indeed acquired only two companies over the past four years. However, the acquisition cost was still not provided. We then resorted to financial and tech news websites such as Geekwire. Through this strategy, we were able to find the acquisition cost for Digital Fuel. FittedCloud was said to be acquired for an undisclosed amount. As a last resort in finding the amount FittedCloud was acquired for, we looked for SEC filings and annual reports for both FittedCloud and Apptio. As mentioned earlier, while Apptio went public in 2016, it was acquired by Vista Partners and removed from the stock market in January 2019. Therefore, the only annual report published by the company is dated 2017. Since FittedCloud was acquired in 2018, there was no information on the company in Apptio's 2017 annual report. FittedCloud is a small private company and does not publish financial data so this strategy was unsuccessful. As a result, no cost of acquisition has been provided for FittedCloud.
Sources
Sources