Opsware Approaches $100M in Annual Revenue
Opsware posted a quarerly loss of $5.8 million this week, but its revenue was sharply higher, and Wal Street likes it. ThinkEquity analyst Ranjini Chandirakanthan lifted 2007 revenue estimates to $100.8 million from $94.1 million, and predicted that Opsware will “be one of the fastest-growing companies in our space,” according to the AP. Then there’s this from The Motley Fool, reflecting on the fortunes of Opsware co-founder, browser pioneer Marc Andreessen:
The business seems to be picking up momentum, raising its annual revenue estimate from $92 million to $100 million. With gross margins of roughly 75%, it appears to be hitting the point where it can scale effectively and let incremental revenue drop to the bottom line. Andreessen has stuck through it all. Seven years of unrelenting losses and $490 million of accumulated losses later, the clouds obscuring his company’s path to profitability are beginning to part.
In its previous life as Loudcloud, the company was famously the last major IPO of the dot-com boom. It looks like Andreessen and his Opsware cohorts are positioned to benefit from their patience and perseverence. Still, it may take a while to make back that $490 million back.