Good Technology plans IPO to expand in mobile enterprise

Good Technology filed plans with the Securities and Exchange Commission to conduct an initial public offering, a move that could generate the cash the company needs to compete against the likes of VMWare, BlackBerry (NASDAQ:BBRY), IBM and a host of other companies in the mobile enterprise space.

Wireless carriers including AT&T Mobility (NYSE: T) and Verizon Wireless (NYSE: VZ) sell Good services to their enterprise customers.

According to Good's SEC filing, the company's revenue continues to climb, growing from going from $33 million in 2010 to $115 million in 2013. However, the company's expenses have equally grown, outpacing its revenues: Good's expenses clocked in at $84 million in 2010 and reached $231 million in 2013.

As a result, Good reported a net loss of $188 million last year.

However, Good has positioned itself as a software-as-a-service (SaaS) company, selling mobile enterprise technologies and services to business customers. As VentureBeat points out, the SaaS model requires significant upfront costs but then can, potentially, recoup those costs as the company collects subscription fees from its customers.

Good boasted that it secures 1.8 billion messages worldwide per week, and that its products have been deployed by "100% of the Fortune 100 commercial banks, 100% of the Fortune 100 aerospace and defense firms, seven out of 10 of the Fortune 100 insurance companies, and five out of six of the Fortune 100 healthcare providers." The company said it counts 5,000 customers in 184 countries, including more than 50 of the Fortune 100 companies.

Good's IPO filing is the latest turn in Good's long and varied corporate history. The company was founded in 1996 and acquired by Motorola in 2006. In 2009, Motorola sold Good to rival mobile email company Visto, and the merged company continued business under the name Good. From 2009 through 2011, Good focused much of its efforts on the consumer market with its Good for You application, which generated the largest portion of our revenues. However, the company in recent years has directed all of its focus on the enterprise market.

Christy Wyatt, a former Motorola executive, good over as Good's CEO in January, 2013.

Most recently, Good disclosed it purchased BoxTone, which provided real-time monitoring services for mobile services, for roughly $101 million.

For more:
- see this Good SEC filing
- see this Re/code article
- see this VentureBeat article

Related Articles:
VMware acquires AirWatch in $1.2B deal to build up mobility expertise
BlackBerry CEO's open letter to enterprise customers: 'We are very much alive'
Can BlackBerry survive as a services company? I doubt it.
Motorola sells mobile email business to Visto

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