MariaDB ditches products and staff in restructure, bags $26.5M loan to cushion fall

MariaDB is ditching strategical products and cutting 28 percent of nan workforce arsenic it struggles to flooded nan financial challenges its faced since floating connected nan banal market. The institution besides announced entree to a caller $26.5 cardinal indebtedness facility.

In a US Securities and Exchange Commission announcement published yesterday [PDF], nan database institution - calved retired of unfastened root MySQL - said it would extremity trading its database-as-a-service SkySQL and Xpand, its globally distributed database backmost extremity for nan DBaaS.

SkySQL was launched to rival RDBMS services from unreality vendors specified arsenic Google, Microsoft, and AWS. It was released successful 2020.

In 2021, MariaDB added the Xpand distributed backend to SkySQL and successful May this twelvemonth it offered a PostgreSQL compatible beforehand extremity to nan service. The institution won praise from analysts for nan engineering down nan products.

MariaDB will beryllium forced to explicate to customers why it went to specified efforts to person them to bargain these products, only to discontinue them.

"As portion of nan [restructuring] plan, nan institution will attraction its attraction connected its halfway MariaDB Enterprise Server database product," nan connection said. "Products not related to nan halfway MariaDB Enterprise Server business, including SkySQL and Xpand, will nary longer beryllium sold and nan Company has implemented a scheme to thief existing customers migrate disconnected these products."

Among those deed will beryllium consumer electronics elephantine Samsung [PDF], which uses 50 Xpand nodes that run arsenic a azygous database, sustaining tens of billions of transactions per time to thief Samsung customers negociate devices and personification profiles.

The scheme besides includes nan nonaccomplishment of 84 jobs aliases astir 28 percent of nan workforce to trim operating costs. Among those to suffer their jobs is main trading serviceman Franz Aman. Around 13 labor are expected to beryllium provided modulation packages that will guarantee they connection immoderate services done nan year.

• Venture superior patient makes 'unsolicited' bid for MariaDB buyout
• MariaDB's gross grows arsenic caller CEO settles in, but slope indebtedness discussions continue
• MariaDB sent dollar dip informing from NYSE
• MariaDB CEO: People who want things free besides want to person very bully vacations

In a statement, MariaDB said nan merchandise cull and occupation losses were portion of a board-approved restructuring scheme successful consequence to financial stresses that began to look earlier this year.

In April, nan institution cut 26 jobs and repeated a "going concern" warning to investors. Among nan issues was nan hunt for finance aft a shaky IPO. "We are presently seeking further superior to meet our projected moving capital, operating, and indebtedness repayment needs for periods aft September 30, 2023," it said successful March.

In August, MariaDB said it was successful talks pinch a ample commercialized slope and changed CEO.

Earlier this week, the institution besides announced a caller finance package [PDF]. RP Ventures has agreed to a $26.5 cardinal "senior secured promissory note" – a shape of in installments statement – astatine an liking complaint of 10 percent per annum.

The installation will beryllium utilized to salary disconnected a European Investment Bank loan, pinch a maturity day of October 11, 2023.

The caller VC indebtedness has a maturity day to a maximum of January 10, 2024. Until past MariaDB is restricted from pursuing mergers aliases recapitalization. In September, Runa Capital made an unsolicited bid for MariaDB. ®