Financial app developer Yodlee sets terms for $75 million IPO

Yodlee, which provides a SaaS platform for businesses to develop consumer-facing financial apps, announced terms for its IPO on Monday. The Redwood City, CA-based company plans to raise $75 million by offering 6.3 million shares at a price range of $11 to $13. At the midpoint of the proposed range, Yodlee would command a fully diluted market value of $375 million.

Yodlee's development platform boasts over 750 organizations whose applications are used by nearly 17 million users.

Primary shareholders include Warburg Pincus, Bank of America, Institutional Venture Partners, ACI Worldwide, Accel Partners. Bank of America, one of Yodlee's joint bookrunners, is also among the company's largest customers, and contributed 14% of revenue during the six months ended June 30, 2014. The company's three largest customers together accounted for 26% of revenue during the period.

Revenue increased 29% to $41 million for the six months ended June 30, 2014. Gross profit improved 250 bps to 61.5% and adjusted EBITDA swung to a positive $2 million from a $174,000 loss in the 1H13. Yodlee generates higher revenue based on the use and popularity of downstream developed apps, and as of the 2Q14, about 17 million users had billable activity, up from 12 million one year ago.

Yodlee, which was founded in 1999 and booked $79 million in sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol YDLE. Goldman Sachs, Credit Suisse and BofA Merrill Lynch are the joint bookrunners on the deal. It is expected to price during the week of September 29, 2014.