Google Acquisition Apigee's Revenue Climbs

Software company Apigee Corp., in the process of being bought by Alphabet Inc.'s Google, said its loss narrowed in the latest period, helped by climbing revenue as it added more customers.

Apigee specializes in Application Programming Interfaces, or APIs-which serve as the conduit for automated communication between companies' digital systems and their partners and customers. It is an increasingly important software in modern commerce.

The firm went public in April 2015. The company sold shares for $17 a piece in its initial public offering, and the stock opened at $20. Google said earlier this month that it agreed to pay $17.40 a share to acquire the firm, a roughly $625 million deal. The stock has more than doubled in value this year.

Apigee's customers, which include AT&T Inc., Walgreen Co., and Burberry Group PLC, pay Apigee a fraction of a cent every time they tap the API. Google is betting this so-called enterprise-cloud business can be a major revenue driver over the next several years, helping diversify its business from advertising.

The company said Wednesday it now has more than 335 customers, up by more than 130 compared with the year-earlier quarter.

Apigee posted a loss of $9.5 million, or 32 cents a share, compared with a year-earlier loss of $12.6 million, or 43 cents a share. Excluding items, the company lost 21 cents a share, compared with 38 cents a year ago.

In May, the company guided for an adjusted loss per-share in a range of 27 cents to 30 cents.

Revenue rose 34% to $25.1 million. The company expected revenue between $24 million and $25.5 million.

The company said it wouldn't provide any more guidance for future financial results and that any previous statements "should no longer be relied upon." It previously guided for full-year revenue between $90.9 million and $92.4 million and an adjusted loss in the range of $1.11 to $1.14 a share.

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(END) Dow Jones Newswires

September 14, 2016 17:35 ET (21:35 GMT)

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