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Boise’s Clearwater Analytics files for IPO, could fetch $4 billion valuation

Boise’s Clearwater Analytics hopes to go public on the New York Stock Exchange, according to a filing with the Securities and Exchange Commission.

The IPO has long been rumored, with reporting late last year in several financial publications noting it was possible.

David Boren, Micahel Boren, and Douglas Bates founded the company in Boise in 2004. The company offers cloud software for investment accounting, reporting, and analytics.

The company has not priced the offering or detailed how many shares it might sell. Reporting earlier this summer from Bloomberg said the company was targeting a valuation of $4 billion.

Clearwater told the SEC it could sell up to $100 million worth of shares. The filing with the SEC does not necessarily mean the company will complete the process and go public.

[Stanley residents, Clearwater Analytics founder at odds over airstrip in Sawtooth Valley]

Filing details Clearwater Analytics’ analytics

In the filing, Clearwater provided extensive detail on its business operations. It claims more than 1,000 clients and 24% year-over-year revenue growth. The company says it books $245 million in annual recurring revenue each year, up from $90 million in 2016, which represents a 25% compound annual growth rate over the last five years.

(Clearwater included the chart below. Though the chart does not indicate the revenue figures shown are in millions, the annual recurring revenue stands at $245,033,000 as of June 30th of this year).

As is standard with filings like this, Clearwater listed a number of risks related to investing. Issues related to the company’s fast growth and possible inability to continue growing, challenges from COVID-19, employee attraction and retention, cybersecurity issues, the threat of regulation, and more.

It operates out of a portion of a large custom-built office building in Downtown Boise. The company leases the space and pays $2.4 million per year for use of the building, according to the filing. The building remains largely unoccupied and has since the outset of the COVID-19 pandemic.

The filing indicates company CEO Sandeep Sahaiis not required to live in Boise but must travel to the area at “a sufficient frequency to collaborate with Company’s officers, employees, and contractors.” Several other top executives have similar clauses in their employment agreements.

[2020: Boise’s Clearwater Analytics announces large investment]

Clearwater joins a raft of other Boise-founded or based businesses going public or selling in the last year or so, including Albertsons Companies’ 2020 IPO valued at $1.7 billion, Ericcson’s purchase of Cradlepoint for $1.1 billion last fall, and Equifax’s purchase of Kount early this year.

If Clearwater completes its IPO, it will join Boise-area companies Micron Technology, Albertsons, Idaho Power parent Idacorp, US Ecology, Boise Cascade, and PetIQ on public markets.

Don Day - BoiseDev editor
Don is the founder and publisher of BoiseDev. He is a National Edward R. Murrow Award winner and a Stanford University John S. Knight Fellow. Contact him at [email protected].

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