The shares of the enterprise search engine Elasticsearch increased by 94 percent during the first trading day after the IPO of the company. The company had put the price of its shares at 36 dollars for its debut on the New York Stock Exchange. The shares were worth 70 dollars last week after the debut, says Silicon Angle.
This value suggests a market value of just under 5 billion dollars for the originally Dutch company.
Elasticsearch was founded in Amsterdam in 2012, but now has its headquarters in Mountain View, California. The company is best known for its search engine, which indexes internal data for enterprise users in a similar way as Google does for the Internet.
The Elastic Stack also comes with various data management tools, including the Kibana visualization tool, the Logstack engine for entering data from external sources, and Beats, a second data aggregation system. The most important solutions of the company are also open source.
Elasticsearch earns money with a commercial version, which includes advanced functions for enterprises. This includes a machine learning function, which can find deviations in real-time data streams.
However, the company is not yet making a profit. In the previous quarter, the company recorded a net loss of 18.6 million U.S. dollars, which is almost double the loss in the first quarter of 2018. Sales in the second quarter amounted to 56.6 million dollars, 79 percent more than a year earlier.
According to Nicolas Dessaigne, co-founder and CEO of Algolia, data and personalization technologies are at the heart of the current digital revolution. “Today’s customers want to feel cared for, and we see that enterprises are also discovering this movement and investing in technologies that help them predict what their customers want before they know it. We see this shift on Wall Street with SurveyMonkey’s recent successful IPO for targeting and segmentation, and with Elasticsearch’s IPO.”
Other IPOs this year also showed a rapid increase. For example, Upwork rose 41 percent on its first trading day and SurveryMonkey saw its shares rise 43 percent on the first day on the stock exchange.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.