Agile Project Management Software Development Company Rally Software Files For $70M IPO

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Rally Software, a company that provides Agile project management applications for software development, has filed its initial S-1 for a public offering. According to this filing, the company will raise as much as $70 million in the offering (but often these numbers are just placeholders).

Rally’s products and services help businesses implement Agile software development and Lean practices with the right combination of tools, services and best practices. According to the filing, as of October 31, 2012, the company had 154,982 paid users and more than 1,000 customers, including 36 of the Fortune 100 companies. Rally’s clients include Cisco, Microsoft, Aol, and Hewlett-Packard. Rally currently employees 285 staffers.

In terms of revenue, fiscal 2011 sales came in at $29.7 million. This grew to $41.3 million for revenue in 2012, up 29 percent. For the nine months ended October 31, 2011 and 2012, total revenue grew from $30.1 million to $41.4 million, up 38 percent.

For Fiscal 2012, Agile Software’s renewal rate among existing customers was 129 percent, taking into account paid seat nonrenewals, upgrades and downgrades.

The Boulder, Colorado-based company is not yet profitable, and recorded net losses of $9.9 million, $11.6 million and $6.7 million in fiscal 2011, 2012 and the nine months ended October 31, 2012, respectively. The company has been fairly acquisitive over the past few years, buying AgileZen and Flowdock among others.

The company, which competes with another fellow IPO hopeful Atlassian, has raised close to $70 million in funding from Mohr Davidow Ventures, Greylock, Boulder Ventures, and others.