WEBVTT - Talend CEO Mike Tuchen On The Company's $94 Million IPO

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<v Speaker 1>That's a Bloomberg business splash. You're listening to taking Stock

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<v Speaker 1>with Kathleen pim Fox on Bloomberg Radio. Welcome back to

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<v Speaker 1>Taking Stock. Matt Miller here with pim Fox. We are

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<v Speaker 1>joined by Mike took In, the CEO of Talent, uh

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<v Speaker 1>technology company that helps clients compile and analyze data from

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<v Speaker 1>different sources. That I'm going to get an explanation on

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<v Speaker 1>the most interesting thing about the company right now in

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<v Speaker 1>this moment is that they just price an ip O. Mike,

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<v Speaker 1>you just price an IPO a dollar above the range.

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<v Speaker 1>Congratulations on that eighteen dollars a share and it's trading

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<v Speaker 1>up today on the first day of trading. Uh. So,

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<v Speaker 1>everything went well with this I P O and it's

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<v Speaker 1>right now. It's kind of spent. Procedure is a difficult time.

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<v Speaker 1>How did they go for you? Matt? It was beyond

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<v Speaker 1>the numbers? Obviously, it was a terrific day for us.

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<v Speaker 1>We felt like the market was very receptive to the

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<v Speaker 1>offer that we had, and our bankers told us it

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<v Speaker 1>was one of the most oversubscribed offerings they've seen in

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<v Speaker 1>four and a half years. So what ex act leaded?

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<v Speaker 1>When I say that you help clients compile and analyze

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<v Speaker 1>data from different sources, I mean we do that to

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<v Speaker 1>a lot A lot of companies do that. What exactly

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<v Speaker 1>do you do a talent? We help companies become data

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<v Speaker 1>driven because we're in a world where the better companies

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<v Speaker 1>are able to use their data, the more effectively they

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<v Speaker 1>can compete. In every industry, there's companies that are completely

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<v Speaker 1>changing the game based on using data, and as a result,

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<v Speaker 1>our customers can use their data more effectively to drive

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<v Speaker 1>their An example would be so, for example, every company

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<v Speaker 1>in the world needs to make better decisions on sales

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<v Speaker 1>and marketing, which sales, which marketing um uh messages, in

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<v Speaker 1>which marketing campaigns are driving, which sales opportunities to drive,

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<v Speaker 1>which customers, which customers are therefore more profitable, and so

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<v Speaker 1>all that kind of sales and marketing analytics are things

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<v Speaker 1>that we can help them with. Hey, Mike, I wonder

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<v Speaker 1>if you could just help people a little bit about

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<v Speaker 1>your background, because this is number two for you to

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<v Speaker 1>a certain extent. I'm sure he's done a lot of

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<v Speaker 1>other things, but I remember rapp at seven and I

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<v Speaker 1>wondering if you could tell us about that company and

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<v Speaker 1>how you got connected to this world of technology. You bad. So.

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<v Speaker 1>I actually started out in my career as an engineer.

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<v Speaker 1>I was a computer designer UM with a master's electrical engineering,

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<v Speaker 1>designing computer chips. So then I got my lobotomy, went

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<v Speaker 1>to b school and UH worked for then um eight

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<v Speaker 1>half years at Microsoft in two stints. UM my first

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<v Speaker 1>CEO opportunity, as he said, was rappid seven. Had the

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<v Speaker 1>privilege to work with a terrific group of folks in

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<v Speaker 1>Boston and took them from five million to fifty million

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<v Speaker 1>and four and a half years. And then three years

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<v Speaker 1>ago had the opportunity here to join Talent. I jumped

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<v Speaker 1>at that and excited to be here. Today. Customers include

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<v Speaker 1>Air France, City Bank as well as General Electric. And

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<v Speaker 1>this is all about real time analytics or is it

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<v Speaker 1>about research? Um, it's about real time analytics as well

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<v Speaker 1>as really any way that companies want to leverage their data.

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<v Speaker 1>It might be in real time or it might not,

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<v Speaker 1>but every company has day it all over the place.

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<v Speaker 1>It might be in the cloud, it might be in

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<v Speaker 1>different applications, and they need to bring it together, clean

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<v Speaker 1>it up, make sense of it before they can start

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<v Speaker 1>driving their business from it. That that's the part of

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<v Speaker 1>the business that we help them with. So I'm just

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<v Speaker 1>trying to understand what kind of solution you have. Do

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<v Speaker 1>you come with a platform that Talent already has. Do

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<v Speaker 1>you have Taylor ready solutions for the companies with whom

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<v Speaker 1>you work, Um, how exactly do you get the data?

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<v Speaker 1>Do you only use data that they have? I mean,

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<v Speaker 1>I'm trying to get a little more into what Talent doest.

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<v Speaker 1>So we use all of their companies existing data. We

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<v Speaker 1>don't bring our own data. And it's a platform that

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<v Speaker 1>they can use to develop solutions. We don't have customized solutions.

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<v Speaker 1>So what it is is a platform that allows you

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<v Speaker 1>to pull data from all the different places or take

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<v Speaker 1>a real time for you just pin was just mentioning

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<v Speaker 1>and clean it up. Data is always has mistakes and inconsistencies,

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<v Speaker 1>and you need to be able to blend data from

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<v Speaker 1>a multiple different places. I can give a couple of

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<v Speaker 1>examples if that will help. But so some g genius

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<v Speaker 1>came up with this awesome platform and then you guys

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<v Speaker 1>have helped him bring that to market. Basically, we had

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<v Speaker 1>a founding team that had a unique insight into how

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<v Speaker 1>the market was evolving, and um, they thought this the

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<v Speaker 1>approach that we had technically was significantly better than the

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<v Speaker 1>market and they've proven to be right. Go ahead and

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<v Speaker 1>give examples, but the context, I'm just going to bring

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<v Speaker 1>up his Business Objects because the team that started Talent

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<v Speaker 1>are behind Business Objects, which was sold then to S

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<v Speaker 1>S A P. Yes, we have a couple of our

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<v Speaker 1>exact teams from Business Objects and we had our chairman

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<v Speaker 1>UM was the founder and CEO of Business Objects for

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<v Speaker 1>many years, Bernhard the Toad, and so yes that he's

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<v Speaker 1>been super super helpful along the way with the lessons

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<v Speaker 1>that he's learned from building Business Objects, and so you know,

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<v Speaker 1>I'll take give an example UM. Right now, every one

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<v Speaker 1>of you has had alerts UM phone calls from a

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<v Speaker 1>credit card company saying this transaction might be fraudulent. Well,

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<v Speaker 1>how does that happen? What they need to do is

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<v Speaker 1>look at that transaction and all the pull up all

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<v Speaker 1>the data from that and compare that to other transactions

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<v Speaker 1>they know are fraudulent. That process of pulling data together

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<v Speaker 1>and UM screening it for potential fraud is something that

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<v Speaker 1>we can help them with. I get these phone calls,

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<v Speaker 1>by the way, constantly, I feel like I must just

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<v Speaker 1>make typically fraudulent purchases a lot, literally once a week.

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<v Speaker 1>I'm wow, my credit card isn't working because they think

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<v Speaker 1>I'm someone who's stolen my credit card. Uh all right,

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<v Speaker 1>let me ask about the growth prospects because obviously, if

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<v Speaker 1>people are thinking about an I p O the market,

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<v Speaker 1>the stock, they might want to buy it. Um why

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<v Speaker 1>should they put what's the argument for somebody getting in

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<v Speaker 1>after the I p O, after the pop? What kind

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<v Speaker 1>of growth prospects are you looking at? Well, what what

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<v Speaker 1>talent offers is a combination of strong and accelerating growth

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<v Speaker 1>UM with at the same time, we're already cash flow positive,

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<v Speaker 1>and that's really unique relative to the companies that we've

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<v Speaker 1>seen over the last four or five years. We've been

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<v Speaker 1>growing our subscription business around per year UM for the

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<v Speaker 1>five quarters. And uh as far as the proceeds, I

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<v Speaker 1>always like to read that lion the Bloomberg story. You

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<v Speaker 1>raised almost a hundred million dollars. What are you gonna

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<v Speaker 1>do with it? You invest? This is part of an

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<v Speaker 1>exit strategy? What's what's what's the money for? Well, since

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<v Speaker 1>we're already cash flow positive, we don't need the money

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<v Speaker 1>to run the company, and so that gives us an

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<v Speaker 1>opportunity to look for acquisitions. We can look for small

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<v Speaker 1>tuck ins that allow us to accelerate into the markets

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<v Speaker 1>that are close to what we're doing, or speed up

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<v Speaker 1>our ability to UM build deeper solutions. I should have

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<v Speaker 1>started with that question. Great answer, all right, Mike, thanks

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<v Speaker 1>so much for joining us. Real pleasure to talking to Mike.

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<v Speaker 1>Talent CEO Mike Tookin, sorry, CEO of Talent, on the

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<v Speaker 1>company's I p O and the outlook for acquisitions. Taking stock.

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<v Speaker 1>Coming up on taking stock will take stock of the

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<v Speaker 1>Bank of Japan and what it isn't doing in order

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<v Speaker 1>to spur economic growth in the country. The latest monetary

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<v Speaker 1>easing fell short of investor expectations.