Carbon Black Looks to Raise $100M From IPO

Carbon Black, which specializes in endpoint security software, is targeting an initial public offer for later this year, and the company plans to raise about $100 million through its stock sale, according to paperwork filed this week.

The Waltham, Mass., company filed its IPO paperwork with the US Securities and Exchange Commission on Monday, April 9, but did not indicate when the IPO would take place or what the initial stock price would be set as.

The company plans to list itself under the symbol "CBLK" on NASDAQ.

The IPO is being underwritten by Morgan Stanley, JPMorgan and Keybanc Capital Markets along with William Blair, Raymond James and Cowen, according to a statement.

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Founded in 2003, Carbon Black has raised about $191 million in venture capital funding since then, according to CrunchBase. The company was originally named Bit9 before a 2014 acquisition.

Carbon Black has 3,700 customers globally and that includes 33 of the Fortune 100, according to the SEC filing. During the last three years, the company has posted revenue of $70.6 million in 2015, $116.2 million in 2016 and $162.0 million in 2017. This equals out to a compound annual growth rate of about 51% over that time period.

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During that same period, the company sustained net losses of $38.7 million in 2015, $44.6 million in 2016 and $55.8 million in 2017 as it "continued to invest for growth to address the large market opportunity for our platform."

As for the future, Carbon Black plans on leveraging its cloud platform to deliver software to its customers:

"We believe that our cloud platform addresses a significant capability gap in the enterprise endpoint security market and that our solutions will address an increasing subset of additional use cases in public cloud security software, security and vulnerability management and IT asset management."

In addition, the company listed several risk factors, including its quarterly losses, changes to the security market as well as Carbon Black being a target for cyberattacks.

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— Scott Ferguson, is the managing editor of Light Reading and the editor of Security Now. Follow him on Twitter @sferguson_LR.