Talend, S.A. (Nasdaq: TLND) filed its F-1/A with the Securities and Exchange Commission, or SEC, announcing its intent to make an initial public offering of 5,250,000 American depositary shares.

We previewed this deal last week on our IPO Insights platform, where we were initially positive.

The company's expected price range is $15 to $17 per share, and it also has an overallotment of an additional 787,500 shares. The company hopes to raise $86 million through its IPO.

The underwriters for the offering include Goldman, Sachs & Co., J.P. Morgan, Barclays, Citigroup and William Blair.

Business summary: Big-data tech startup

Talend is organized as a société anonyme, or S.A., and is registered in Suresnes, France, with the French Commerce and Companies Register. The company's U.S. headquarters are located in Redwood City, California. The technology company's Talend Data Fabric is a software platform that integrates applications and data across big data, cloud and traditional business systems, so that businesses can have a more unified view of their customers and their business. Talend reports that its customer base is global, including multinational corporations such as General Electric (NYSE:GE), Allianz, Siemens, Lenovo and Citi (NYSE:C). Its platform is offered to its customers as a subscription based on the number of users the customers have.

Talend reports that it had $76 million of total revenues for the year that ended on Dec. 31, 2015. Of that amount, $62.7 million was from subscription revenues, which grew by 27 percent year-over-year. The company reported it had $22 million in net losses for 2015. For the three-month period that ended on March 31, 2016, Talend reports that it had $22.8 million in total revenues, of which $19.3 million was subscription revenues. The company had a net loss of $5.3 million for that quarter.

Executive management overview

The CEO of Talend, Mike Tuchen joined the company in 2013. Prior to that, Tuchen was the CEO of Rapid7 (NASDAQ:RPD). At Rapid7, he led the company through a large expansion of its product line, sales, marketing and partnerships. He is a former executive of Microsoft, serving as the general manager of the SQL server marketing division.

The CFO and vice president of corporate development at Talend, Thomas Tuchscherer joined the company in 2010 in his position as the corporate development vice president, becoming the CFO in 2012. Tuchscherer has 14 years of experience in software mergers and acquisitions, businesses and investments.

Financial highlights and risks

Talend has reportedly raised more than $100 million through venture capital. Its first-quarter revenues were up by 42 percent over the same period from 2015.

Talend says its global market for data integration should grow to $21 billion by 2019. As of the end of the first quarter in 2016, Talend reports it had $9.4 million cash on hand. The company is registered in France and is thus subject to that country's shareholder laws, which may concern some U.S. investors. The company indicates that it has substantial competition from larger, more proven companies as one of its risks.

Conclusion: Buy recommendation

Talend has shown strong expansion of its subscriptions, the primary source of the company's revenues. The big-data market is expanding rapidly, meaning that the customer base for the company should also continue to expand. Talend appears to have a promising path going forward. We recommend that investors strongly consider purchasing shares in this IPO.

For more experienced investors ready for a highly profitable short IPO trade, Talend could follow Line's (Pending:LN) first-day success.