Excited Exagrid embarks express earnings expansion, experiences enterprise enlargement

Quarterly revenues and bookings up a fifth – again

great westren railway ticket + train

Data protecting deduper to disk Exagrid notched up yet another quarter of over 20 per cent revenue growth for its 2018 second quarter.

Actually it was 22 per cent and applied to revenue and bookings. The growth factor was 20 per cent in the first 2018 quarter, 20 per cent in the final 2017 quarter, and 20 per cent for the full calendar 2017 year; regular as clockwork.

Exagrid said it continues to expand its worldwide presence with the opening of additional inside sales offices in the US and Dublin, Ireland as well as field sales teams in Australia, Dubai, Poland, Israel and Mexico. It is also adding extra field sales teams in Switzerland, Spain, Italy, South Korea, Taiwan, and Hong Kong.

The backup world features other high-growth suppliers, like Veeam and Rubrik and, we suspect Acronis and Druva. There are less spectacular but still growing companies like Barracuda, Commvault (7 per cent y-on-y) and Exagrid. Then there are firms like Quantum and Veritas which are struggling.

exagrid

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Exagrid CEO Bill Andrews has talked of a 2019 IPO date; his firm last took in funding 7 years ago with a $10.6m round taking total venture capital investment to $77.7m. Peanuts by today's standards - Rubrik, in comparison, has taken in more than $292m.

We think Exagid is certainly cash flow-positive and possibly profitable. Its annual revenue is probably north of $50m.

But the thing is , it’s a legacy deduping-backup disk array target. Nothing wrong with that but Rubrik positions itself as a data management company, looking after all your secondary data storage needs, which has shades of Cohesity's business plan.

Availability-focussed Veeam is glamourising itself up by saying it’s now a hyper-availability company and going full-tilt towards enterprises. Dell has added copy data management to its Integrated Data Protection Appliance.

Against this upgrading of radically sexed-up basic deduping backup arrays Exagrid looks like an supplier of damned good basic deduping backup arrays that is, well, ordinary-looking compared to the hot and highly-promoted Rubriks, Veeams and others. Will that perception hinder its IPO prospects as these other companies and their dash to growth become overwhelming?

We just don’t know, but hope not. ®




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