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Tintri IPO: The Fundamental Problems

Jul. 05, 2017 8:51 AM ETTintri, Inc. (TNTR-OLD)4 Comments
Richard Ashton profile picture
Richard Ashton


  • Tintri, a tech company which sells cloud and storage capabilities, had a lackluster IPO debut which raised $60 million.
  • While Tintri can boast strong revenue growth, the rate of growth is slowing and the company is highly unprofitable.
  • Tintri faces heavy competition in its market and similar companies have struggled in the past when going public.
  • Investors should not pay Tintri even the slightest consideration.

Last week was a big week for tech IPOs as companies like Blue Apron and Tintri (NASDAQ:TNTR-OLD) went public. And last week was a disappointing week as these tech companies slashed their initial share price expectations, and then failed to meet even those expectations. In Tintri’s case, the storage company slashed its initial pricing from $10.50 to $12.50 to $7 to $8 at the last minute, leaving some investors stranded and surprised by the change. But after a lackluster start, Tintri sits at a mere $7.25 per share and raised just $60 million.

Is now a good time to take a look at a company on the cheap? Absolutely not. There are very few merits to Tintri and a host of problems which it has failed to adequately answer. The hospital consulting company is unprofitable, its revenue growth is slowing, and it is in a market which has seen other companies fail due to changing technological circumstances. This is not a worthwhile investment.

Typical Tech Problems

Tintri in some ways emulates the problems which far too many tech IPOs possess. Its revenue has ballooned in the past few years according to its SEC filing, going from almost $50 million in the fiscal year ending January 2015 to over $125 million in the same period ending January 2017. And Tintri claims that since it projects the storage hardware market could reach over $27 billion in 2018, it has plenty of growth potential.

But while Tintri can claim that its revenue growth shows its potential, the rest of its numbers are extremely concerning. Tintri lost over $105 million in 2017 compared to a net loss of $69 million in 2015. By comparison, Tintri claims to have $49 million in cash and $97 million in total assets as of April 30, 2017. We are looking at a company with ever increasing losses that

This article was written by

Richard Ashton profile picture
Richard Ashton is a business journalist with a deep fascination with the American markets. He spent several years working as a Risk Specialist at UBS in New York before switching to a career in journalism. Currently he lives and works in Cardiff, UK, where, apart from earning money as a writer, he follows investment news religiously.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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