Reid said a cloud company needs about $80 million to $100 million in revenue and to grow at 35 percent annually. "If you are growing slower than that, you have to be bigger," he noted. A smaller company needs to grow fast and he described Intacct as getting into the right area, although "right now a little bit light". Since he said Intacct has been growing revenue at 50 percent a year for each of the last five years, which would put Intacct at the lower end of the revenue tier, given his math. Reid has taken three companies public, so he knows the steps to the dance. He made one intriguing comment that the "Markets were pretty good up until February and than all the metrics went down."
CHANCES OF INTACCT IPO? Featured
Intacct CEO Robert Reid indicated this week his cloud software company is not quite at the spot it can approach the market for an initial public offering. "It's pretty simple. Wall Street has a number of different metrics you have to have some substance and enough growth," he said at the company's Advantage conference this week. But the fact analysts were invited to the conference for the first time suggests the tune for the IPO dance is starting to play.
