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NEW YORK, NY ( TheStreet) -- The third time has certainly been the charm for collaborative software provider IntraLinks(IL - Get Report). After two unsuccessful attempts to go public, the company succeeded this summer and has seen its shares rise more than 28% from its IPO price.
IntraLinks CEO Andrew Damico recently stopped by to chat with
TheStreet about the company's plans now that it has finally broken through to the public markets, and what he views as the competitive environment in the cloud.
What exactly is collaborative software?Damico: Let me give you some context. We may have recently gone public, but IntraLinks has been in business for 14 years, helping our customers exchange critical information using our cloud-based platform in a secure and compliant fashion. To give you one example, in the life sciences community, pharmaceutical companies use our platform to distribute safety reports to investigators' sites all around the world.
Who are some of IntraLinks' competitors?Damico: We have a number of competitors in the different niche industries that we focus on. But our biggest competitor is really the old way of doing business. Its paper, fax and
Fedex(FDX - Get Report). Its dropping DVDs and thumb drives into Fedex envelopes.
How does IntraLinks work with a company such as Akamai(AKAM - Get Report)?Damico: Akamai is a partner of ours. Because we are a global organization and we have 4,500 customers across 62 countries, people are accessing our cloud all around the world. We want to give our customers great performance. So Akamai is part of our infrastructure and it enables our customers to get great performance both uploading and downloading information in our cloud-based platform.
Intralinks has thousands of clients, some very well-heeled ones. Where are you in terms of profitability?Damico: We have been a profitable company on an operating basis since 2003. We have best-in-class EBITDA margins and free-cash flow margins. That said,
TA Associates acquired Intralinks back in June 2007. As part of the transaction, there are a number of noncash items that flow through our balance sheet and income statement that show that we are actually at a loss. But that GAAP loss is actually narrowing as we continue to grow our business.
Potentially, how big is the market for collaborative software?Damico: If you look at IDC's latest study, they view the size of the market in the $9 billion range, growing to about $13 billion in 2013. The cloud computing component of that is growing faster than the premise-based software, which is probably not a big surprise. So we are still scratching the surface in terms of bringing our cloud-based platform to support the exchange of critical information to our customers, and we think we have a long runway to continue to grow our business going forward as a result.
Reported by Gregg Greenberg in New York.
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