Rally Software reports loss for first quarter

BOULDER – Rally Software Development Corp. reported revenue of $16 million and a net loss of $5.8 million in its most recent quarter, its first as a publicly traded company.

Rally raised $89.8 million in its initial public offering in April.

Boulder-based Rally (NYSE: RALY) reported revenue for the first quarter that ended April 30, 24 percent increase compared with the $13 million reported for the same period a year ago. The company makes cloud-based, software applications for business customers.

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“As our financials demonstrate, we experienced good momentum across the business and had notable new customer wins in many key industries and geographies,” Tim Miller, Rally’s chief executive, said in a press statement.

The company’s $5.8 million net loss, or 98 cents per share, for the quarter, was more than its net loss of $1.7 million, or 86 cents per share, for the same period a year ago. The net loss was related to the company’s “continued investment to drive future growth of the business,” according to the press statement.

As the company released its quarterly earnings, it also announced Dan Patton as the new executive vice president of global sales. Don Hazell, who previously led Rally’s sales team, will shift to a new position as Rally’s executive vice president of strategic accounts, and will report to Patton, the company said in a separate press statement.

Rally also said the company expects to see total revenue in the range of $71 million to $73 million in the first year it is publicly traded, a 25 percent to 29 percent growth compared with the previous year.

Rally’s chief technology officer, Ryan Martens, founded the company in Boulder in 2001 as F4 Technologies Inc. Since then, Rally has raised about $70 million in venture funding from investors such as Boulder Ventures, Mobius Technology Ventures, Mohr Davidow Ventures, Greylock Partners and Vista Ventures.

The company has about 380 employees.