Tangoe (NASDAQ:TNGO) is a technology company which offers a Software as a Service (SaaS) tool that helps companies manage and optimize their mobile and fixed communication costs. The software tool analyzes the level and patterns of usage to minimize the costs. The web platform also discovers and solves billing errors. As a whole, the SaaS platform helps to improve the efficiency and time required to manage the communication costs of organizations. Customers pay subscription fees as part of 2-5 year contracts in order to use the tool.
For the full year 2010, Tangoe's total revenue was $68M. This was a 22.5% increase over the $55.9M revenue of 2009. The company reported a net loss in 2010 of $1.75M and $2.55M in 2009.
The company's initial public offering of stock on the NASDAQ occurred on July 26, 2011. The company offered 8.8M shares each for $10. This was within the initial price range of $9-$11. The deal raised a total of $88. The lead underwriters were Deutsche Bank AG (DB) and Stifel Nicolaus Weisel.
The rise in mobile phones and devices have made corporate communication plans much larger and more complex. While such plans used to be restricted to simply fixed lines, many employees have complex plans for many different internet and telephone enabled devices. As a result, this increased complexity requires additional time and effort to organize and optimize. Tangoe expects that this trend will continue, and will fuel demand for its software service.