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ZDNet: Docker is in Deep Trouble

posted by chromas on Tuesday October 01 2019, @10:35PM   Printer-friendly
from the hickory-dickory-dockery dept.

martyb writes:

Docker is in Deep Trouble:

Docker, the technology, is the poster child for containers. But it appears Docker, the business, is in trouble. In a leaked memo, Docker CEO Rob Bearden praised workers -- despite the "uncertainty [which] brings with it significant challenges" and "persevering in spite of the lack of clarity we've had these past few weeks."

Lack of clarity about what? Sources close to the company say it's simple: Docker needs more money.

Indeed, Bearden opened by saying: "We have been engaging with investors to secure more financing to continue to execute on our strategy. I wanted to share a quick update on where we stand. We are currently in active negotiations with two investors and are working through final terms. We should be able to provide you a more complete update within the next couple of weeks."

Docker has already raised $272.9 million, but the company hasn't been profitable. It's[sic] venture-capitalist supporters -- ME Cloud Ventures, Benchmark, Coatue Management, Goldman Sachs, and Greylock Partners -- which have seen it through Series E financing, can't be happy, that after almost six-years, Docker still isn't close to an IPO.

While the previous CEO, Steve Singh, promised in May 2019 that Docker would be cash-flow positive by the end of this fiscal year, that appears not to have been the case. Otherwise, Docker wouldn't need to seek additional capital.

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  • (Score: 1, Informative) by Anonymous Coward on Tuesday October 01 2019, @11:05PM (3 children)

    by Anonymous Coward on Tuesday October 01 2019, @11:05PM (#901544)

    Revenue / capital is not how you calculate ROC, it's net income / capital. On that measure, Docker is a dud. But don't worry, they will pivot and become a leading vendor of fintech... yeah, that's the ticket.

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  • (Score: 2) by VLM on Tuesday October 01 2019, @11:26PM (2 children)

    by VLM (445) on Tuesday October 01 2019, @11:26PM (#901558)

    Yes you are correct and this is late at night for me. But, yeah, they spent a quarter B to get 50 M/yr revenue stream. Its better than some of the dotcom 1.0 companies that spent plenty of dough to get zero revenue at all, LOL. So we're not quite at April 2000 again, but gettin there soon....

    • (Score: 2) by FatPhil on Thursday October 03 2019, @08:21PM (1 child)

      by FatPhil (863) <{pc-soylent} {at} {asdf.fi}> on Thursday October 03 2019, @08:21PM (#902420) Homepage
      Nope, we're there. Look at the "tech" stuff in the US that SoftBank has propped up, they're almost all zombies - they don't even make enough money to pay off the interest on their debts. WeWork worth 120 billion? Yeah, right...
      --
      Great minds discuss ideas; average minds discuss events; small minds discuss people; the smallest discuss themselves

      • (Score: 2) by VLM on Thursday October 03 2019, @09:28PM

        by VLM (445) on Thursday October 03 2019, @09:28PM (#902437)

        Well... WeWork is a real estate management subletting company kinda like a shopping mall holding company but for office space instead of womens clothes retail.

        Its somehow branded as "tech" because... they have a website. Oooh a website, in 2019, how innovative. So there are aspects of 2000 dotcom 1.0 there...