Cohesity Inc., a major data management provider, today announced that it has confidentially with the U.S. Securities and Exchange Commission to go public.

The company didn’t go into detail about the planned listing in its brief announcement of the move today. Cohesity stated that the number of shares to be offered and the target price range have not yet been determined.

According to a Bloomberg report from last week, Cohesity has hired JPMorgan Chase & Co. and Morgan Stanley to assist it with the initial public offering. The IPO is expected to take place next year. Bloomberg’s sources indicated that Cohesity is targeting an IPO valuation of between $5 billion and $10 billion, well above the $3.7 billion private valuation it received in March.

San Jose, California-based Cohesity provides a product suite called Helios that helps organizations manage their data across public cloud, on-premises and edge infrastructure. The company said in September that about 2,600 customers use its products. That includes nearly a quarter of the Fortune 500, Cohesity disclosed at the time.

A sizable portion of the products in the Helios suite focus on helping companies recover from data loss events. Cohesity provides a cloud backup service called DataProtect that takes a few minutes to set up and promises to reduce companies’ data protection costs by up to 70%. Another Cohesity product, SiteContinuity, makes it easier to restore applications after an outage.

The company has expanded its product portfolio several times in recent years to support revenue growth. In October, it introduced a service dubbed Project Fort Knox that promises to help enterprises mitigate the impact of ransomware attacks. The service allows an organization to store a backup copy of its data in an isolated software vault managed by Cohesity.

Cohesity’s product strategy has helped the company achieve impressive revenue growth. 

In September, Cohesity disclosed that its annual revenue run rate surpassed $300 million during the quarter ended July 31. The milestone was partly the result of a more than 70% jump in recurring revenue from a year earlier. In the same time frame, Cohesity increased the total number of customers using its products by 40%. 

It’s notable that existing customers also contributed significantly to Cohesity’s revenue growth. According to the company, recurring revenues from existing customers grew more than 30% in the 12 months through July 31. 

Cohesity’s recent revenue growth data highlights a key benefit of its product strategy. The fact that Cohesity offers a large collection of data management products as part of its Helios portfolio gives the company opportunities to increase revenue from enterprise customers over time. A firm that buys one Cohesity product has the potential to adopt additional solutions from the company’s Helios portfolio in the future. 

Cohesity has developed features to make using its products side-by-side easier than deploying disparate tools from different suppliers. Helios offers unified management features that promise to ease information technology teams’ day-to-day work. 

The report that Cohesity’s IPO could value it at as much as $10 billion, more than double its last private valuation of $3.7 billion, suggests that the company expects revenue growth to continue. Another detail that may factor into the steep target valuation: Cohesity has been moving closer to profitability. In March, Cohesity founder and Chief Executive Officer Mohit Aron stated that the company was nearing break-even on a cash flow basis.

Photo: Cohesity