HORTONWORKS Scored 5.11 – Triton Research Dossier Published

The Triton Research Dossier on Hortonworks, Inc. has been published.  According to the Dossier, Hortonworks is a young company with limited (product launched 2012) and poorly-disclosed operating metrics.  Although management is considered strong, the Company has significant ownership among “customers” including Yahoo! and HP.  Hortonworks produces large ongoing net losses and negative free cash flow – it is difficult to understand how this Company will get to profitability.  One potential tailwind for Hortonworks is its deal dynamics – the offering is relatively small, its syndicate and lead VC investor are strong, and insider buying is backed into the transaction.  Ultimately if Hadoop becomes as important as Linux and if Hortonworks executes, then Hortonworks could become something like Red Hat…however the deal is priced at Red Hat’s current multiple.

Triton Research has published a 56-page report on Hortonworks containing a bottom-up financial model, product analysis, business model analysis, bull vs. bear case scenarios, comparative analyses, questions for management, historical capitalizations, historical valuations, and more.  For pricing information please contact Kaylan Tildsley at (212) 804-6151.