Yodlee (YDLE) Surges in IPO Debut

Today's IPO for Yodlee (NASDAQ: YDLE) is having a strong debut. Shares opened at $16.20 after pricing its initial public offering of 6,250,000 shares of its common stock at a price of $12.00 per share, the middle of the expected $11-$13 range. Shares have continued higher to $17.60, or up 47%.

Goldman, Sachs & Co. and Credit Suisse Securities (USA) LLC are the lead bookrunning managers for the offering. BofA Merrill Lynch and UBS Investment Bank are joint bookrunning managers for the offering. Pacific Crest Securities LLC is acting as co-manager.

Yodlee is a leading technology and applications platform powering dynamic innovation for digital financial services in the cloud.

Financial summary: In 2013, our revenue increased by 21% to $70.2 million, driven largely by an increase in subscription revenue, which grew 28% from the year ended December 31, 2012, offset by a 1% decrease in professional services and other revenue. During the six months ended June 30, 2014, our revenue increased by 29% to $41.1 million, driven by an increase in subscription revenue, which grew 34% from the six months ended June 30, 2013. A substantial portion of our revenues has been derived from contractually-recurring subscription and support revenues, and our solutions are integrated into our customers’ business processes driving strong customer retention. Our subscription and support revenue net retention rate, which we use as a measure of our ability to retain our customers through renewals of subscription agreements and to expand the number of our paid users, was 115%, 114% and 123% for the years ended December 31, 2011, 2012, and 2013, and 119% and 123% for the six months ended June 30, 2013 and 2014, respectively. We generate revenues primarily from subscription and support fees and professional service fees. Subscription and support revenue has been a growing majority of our revenues and accounted for 81% and 85% of our revenue during the year ended December 31, 2013, and the six months ended June 30, 2014, respectively.

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