HashiCorp’s stock surged by 12% during after-hours trading on Friday following reports from Bloomberg suggesting that the software developer is contemplating a potential sale.
According to Bloomberg, the company has enlisted the expertise of an external firm to gauge interest from potential buyers, although the sources remain anonymous. Despite the outreach, a representative from HashiCorp did not provide an immediate response for comment.
Specializing in software that empowers developers to manage resources across public clouds and data centers, HashiCorp made its debut on the Nasdaq in late 2021, coinciding with the pinnacle of the tech market.
However, its stock experienced a 14% decline last year, contrasting starkly with the S&P 500’s robust 24% gain.
At the close of Friday’s trading session, HashiCorp’s shares were valued at $26.50, marking a substantial 67% decrease from its initial public offering price, with its market capitalization hovering around $5 billion.
Notably, revenue growth in the latest quarter decelerated to 15% from the previous year’s 41%.
CEO David McJannet acknowledged the company’s current standing in a recent conference call with analysts, stating, “We are behind where we wanted the company to be at this point in our growth cycle, and we have work to do.”
In December, Mitchell Hashimoto, one of the co-founders and former technology chief of HashiCorp, announced his departure from the company.
