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Press Release Details

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Cloudera Reports Third Quarter Fiscal Year 2020 Financial Results

December 05, 2019

PALO ALTO, Calif., Dec. 5, 2019 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its third quarter of fiscal year 2020, ended October 31, 2019. Total revenue for the third quarter was $198.3 million, and subscription revenue was $166.9 million. Annualized Recurring Revenue grew 13% year-over-year.

"I am pleased to report that we executed well in Q3, building on the positive momentum generated in Q2. We delivered strong operating and financial results across the board and launched the Cloudera Data Platform to a great reception from customers, partners and industry analysts," said Marty Cole, chairman of the board and interim chief executive officer, Cloudera. "Customers now have a highly competitive set of cloud-native services from Cloudera, and we've made hybrid cloud data management and analytics a reality via the industry's first enterprise data cloud."

Except where noted, all numbers reported for prior periods are presented for Cloudera on a standalone basis, since there is no comparative year-over-year financial information for the combined company.

GAAP loss from operations for the third quarter of fiscal 2020 was $82.5 million, compared to a GAAP loss from operations of $25.7 million for the third quarter of fiscal 2019.

Non-GAAP loss from operations for the third quarter of fiscal 2020 was $8.2 million, compared to a non-GAAP loss from operations of $3.1 million for the third quarter of fiscal 2019.

Operating cash flow for the third quarter of fiscal 2020, which includes $6.1 million of merger-related payments, was negative $5.9 million, compared to operating cash flow of negative $6.8 million for the third quarter of fiscal 2019.

GAAP net loss per share for the third quarter of fiscal 2020 was $0.29 per share, based on weighted-average shares outstanding of 283.3 million shares, compared to a GAAP net loss per share of $0.17 per share for the third quarter of fiscal 2019, based on weighted-average shares outstanding of 152.2 million shares. See financial statement tables below for additional information regarding historical and forward-looking stock-based compensation expense and shares outstanding.

Non-GAAP net loss per share for the third quarter of fiscal 2020 was $0.03 per share, based on weighted-average shares outstanding of 283.3 million shares, compared to a non-GAAP net loss per share of $0.02 per share for the third quarter of fiscal 2019, based on weighted-average shares outstanding of 152.2 million shares.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading Non‑GAAP Financial Measures.

As of October 31, 2019, the company had total cash, cash equivalents, marketable securities and restricted cash of $502.2 million.

Recent Business and Financial Highlights

  • Annualized Recurring Revenue was $697.4 million, representing 13% year-over-year growth
  • Non-GAAP subscription gross margin for the quarter was 86%
  • Operating cash flow was negative $5.9 million, including $6.1 million of merger-related payments
  • Customers with Annualized Recurring Revenue greater than $100,000 were 977, up 24 from the prior quarter
  • Launched the Cloudera Data Platform (CDP) on Amazon Web Services and Microsoft Azure
  • Delivered CDP Data Center, our next-generation on-premises offering, representing the strongest elements of the former Cloudera and Hortonworks platforms and new innovations for better scalability, performance and private cloud readiness
  • Cloudera debuted as a Strong Performer in The Forrester Wave: Streaming Analytics, Q3 2019 and was named one of "The 11 providers that matter most" in streaming analytics

Business Outlook

The outlook for the fourth quarter of fiscal 2020, ending January 31, 2020, is:

  • Total revenue in the range of $200 million to $203 million
  • Subscription revenue in the range of $173 million to $176 million
  • Non-GAAP net loss per share in the range of $0.04 to $0.02 per share
  • Weighted-average shares outstanding of approximately 294 million shares

The outlook for fiscal 2020, ending January 31, 2020, is:

  • Annualized Recurring Revenue in the range of $700 million to $720 million
  • Total revenue in the range of $782 million to $785 million
  • Subscription revenue in the range of $659 million to $662 million
  • Operating cash flow in the range of negative $55 million to negative $45 million, including $60 million of merger-related payments
  • Non-GAAP net loss per share in the range of $0.21 to $0.19 per share
  • Weighted-average shares outstanding of approximately 281 million shares

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its third quarter fiscal 2020 results and the outlook for its fourth quarter of fiscal 2020 and full year fiscal 2020 at 2:00 PM Pacific Time today. Participants can listen via webcast by visiting the Investor Relations section of Cloudera's website. A replay of the webcast will be available for two weeks following the call.

The conference call can also be accessed as follows:

  • Participant Toll Free Number: +1-833-231-7247
  • Participant International Number: +1-647-689-4091
  • Conference ID: 4252879

About Cloudera

At Cloudera, we believe that data can make what is impossible today, possible tomorrow. We empower people to transform complex data into clear and actionable insights. Cloudera delivers an enterprise data cloud for any data, anywhere, from the Edge to AI. Powered by the relentless innovation of the open source community, Cloudera advances digital transformation for the world's largest enterprises. Learn more at cloudera.com.

Connect with Cloudera

About Cloudera: cloudera.com/about-cloudera.html
Read our VISION blog: vision.cloudera.com/ and Engineering blog: blog.cloudera.com/
Follow us on Twitter: twitter.com/cloudera and LinkedIn: linkedin.com/cloudera/
Visit us on Facebook: facebook.com/cloudera
See us on YouTube: youtube.com/user/clouderahadoop
Join the Cloudera Community: community.cloudera.com
Read about our customers' successes: cloudera.com/customers.html

Cloudera and associated marks are trademarks or registered trademarks of Cloudera, Inc. All other company and product names may be trademarks of their respective owners.

Forward-Looking Statements

Statements in this press release that are not historical in nature are forward-looking statements that, within the meaning of the federal securities laws including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, involve known and unknown risks and uncertainties. Words such as "may", "will", "expect", "intend", "plan", "believe", "seek", "could", "estimate", "judgment", "targeting", "should", "anticipate", "goal" and variations of these words and similar expressions, are also intended to identify forward-looking statements. The forward-looking statements in this press release address a variety of subjects, including statements about our short-term and long-term goals and targets, including expectations regarding the acceptance by our enterprise customers of enterprise data cloud and the Cloudera Data Platform, and our "Business Outlook" for our fourth quarter of fiscal 2020 and our full year fiscal 2020 operating results. Readers are cautioned that actual results could differ materially from those implied by such forward-looking statements due to a variety of factors, including global economic conditions, competitive pressures and pricing declines, intellectual property infringement claims, and other risks or uncertainties that are described under the caption "Risk Factors" in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC), and in our other SEC filings. You can obtain copies of the company's SEC filings on the SEC's website at www.sec.gov. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurances that our expectations will be attained. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

We report all financial information required in accordance with U.S. generally accepted accounting principles (GAAP). To supplement our unaudited and audited condensed consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the results of our operations as determined in accordance with GAAP. The non-GAAP financial measures used by us include non-GAAP cost of revenue-subscription, non-GAAP cost of revenue-services, non-GAAP subscription gross margin, non-GAAP services gross margin, non-GAAP gross margin, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss, and historical and forward-looking non-GAAP net loss per share. These non-GAAP financial measures exclude stock-based compensation, acquisition- and disposition-related expenses (if any), and amortization of acquired intangible assets from the Cloudera unaudited and audited condensed consolidated statement of operations.

For a description of these items, including the reasons why management adjusts for them, and reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled "Use of Non-GAAP Financial Information" as well as the related tables that precede it. We may consider whether other significant non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures we use.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results or future outlook. Management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results, as well as when planning, forecasting and analyzing future periods. We use these non‑GAAP financial measures in conjunction with traditional GAAP measures to communicate with our board of directors concerning our financial performance. These non-GAAP financial measures also facilitate comparisons of our performance to prior periods.

Annualized Recurring Revenue

Annualized Recurring Revenue ("ARR") is a non-GAAP performance metric, which we use to assess the health and trajectory of our business. ARR equals the annualized value of all recurring subscription contracts with active entitlements as of the end of the period, including pre-merger Hortonworks contracts. ARR does not reflect non-recurring partner revenue, subscription revenue with certain related parties, custom engineering and premium add-on support.

Cloudera, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)



Three Months Ended October 31,


Nine Months Ended October 31,


2019


2018
(As Adjusted)*


2019


2018
(As Adjusted)*

Revenue:








Subscription

$

166,932



$

100,757



$

485,872



$

283,318


Services

31,360



18,231



96,599



52,108


Total revenue

198,292



118,988



582,471



335,426


Cost of revenue:(1) (2)









Subscription

30,224



13,996



88,636



44,764


Services

27,404



15,980



87,355



50,695


Total cost of revenue

57,628



29,976



175,991



95,459


Gross profit

140,664



89,012



406,480



239,967


Operating expenses:(1) (2)








Research and development

66,657



37,563



196,572



121,027


Sales and marketing

117,783



55,055



349,657



170,246


General and administrative 

38,691



22,067



135,568



55,493


Total operating expenses

223,131



114,685



681,797



346,766


Loss from operations

(82,467)



(25,673)



(275,317)



(106,799)


Interest income, net

2,756



2,440



9,203



6,420


Other income (expense), net

(46)



(1,126)



291



(3,154)


Loss before provision for income taxes

(79,757)



(24,359)



(265,823)



(103,533)


Provision for income taxes

(2,365)



(1,498)



(6,472)



(3,595)


Net loss

$

(82,122)



$

(25,857)



$

(272,295)



$

(107,128)


Net loss per share, basic and diluted

$

(0.29)



$

(0.17)



$

(0.98)



$

(0.72)


Weighted-average shares used in computing net loss per share, basic and diluted

283,267



152,245



277,260



149,507



* As adjusted to reflect the impact of the full retrospective adoption of Topic 606.



(1)

Amounts include stock‑based compensation expense as follows (in thousands):



Three Months Ended October 31,


Nine Months Ended October 31,


2019


2018


2019


2018







Cost of revenue – subscription

$

4,306



$

2,016



$

12,314



$

7,060


Cost of revenue – services

4,620



2,290



13,076



7,540


Research and development

19,697



7,805



55,991



26,002


Sales and marketing

17,400



5,504



46,199



14,281


General and administrative

8,191



4,275



37,238



12,848


Total stock-based compensation expense

$

54,214



$

21,890



$

164,818



$

67,731


 



(2)

Amounts include amortization of acquired intangible assets as follows (in thousands):



Three Months Ended October 31,


Nine Months Ended October 31,


2019


2018


2019


2018

Cost of revenue – subscription

$

2,761



$

622



$

8,358



$

1,866


Sales and marketing

17,264



35



51,764



105


Total amortization of acquired intangible assets

$

20,025



$

657



$

60,122



$

1,971


 

Cloudera, Inc.

Condensed Consolidated Statements of Operations

(as a percentage of total revenue)

(unaudited)



Three Months Ended October 31,


Nine Months Ended October 31,


2019


2018
(As Adjusted)*


2019


2018
(As Adjusted)*

Revenue:








Subscription

84

%


85

%


83

%


84

%

Services

16



15



17



16


Total revenue

100



100



100



100


Cost of revenue(1) (2): 








Subscription

15



12



15



13


Services

14



13



15



15


Total cost of revenue

29



25



30



28


Gross margin

71



75



70



72


Operating expenses(1) (2):








Research and development

34



32



34



36


Sales and marketing

59



46



60



51


General and administrative

20



19



23



17


Total operating expenses

113



97



117



104


Loss from operations

(42)



(22)



(47)



(32)


Interest income, net

1



2



2



2


Other income (expense), net



(1)





(1)


Loss before provision for income taxes

(41)



(21)



(45)



(31)


Provision for income taxes

(1)



(1)



(2)



(1)


Net loss

(42)

%


(22)

%


(47)

%


(32)

%


* As adjusted to reflect the impact of the full retrospective adoption of Topic 606.



 

(1)

Amounts include stock‑based compensation expense as a percentage of total revenue as follows:



Three Months Ended October 31,


Nine Months Ended October 31,


2019


2018


2019


2018

Cost of revenue – subscription

2

%


2

%


2

%


2

%

Cost of revenue – services

2



2



2



2


Research and development

10



7



10



8


Sales and marketing

9



5



8



4


General and administrative

4



4



6



4


Total stock-based compensation expense

27

%


20

%


28

%


20

%

 

(2)

Amounts include amortization of acquired intangible assets as a percentage of total revenue as follows:



Three Months Ended October 31,


Nine Months Ended October 31,


2019


2018


2019


2018

Cost of revenue – subscription

1

%


1

%


1

%


1

%

Sales and marketing

9





9




Total amortization of acquired intangible assets

10

%


1

%


10

%


1

%

 

Cloudera, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)



October 31,
2019


January 31,
2019

ASSETS




CURRENT ASSETS:




Cash and cash equivalents

$

113,203



$

158,672


Marketable securities, current

292,812



322,005


Accounts receivable, net

162,454



242,980


Contract assets

5,522



4,824


Deferred costs

42,987



32,100


Prepaid expenses and other current assets

28,968



38,281


Total current assets

645,946



798,862


Property and equipment, net

24,524



27,619


Marketable securities, non-current

92,867



56,541


Intangible assets, net

625,137



679,326


Goodwill

590,361



586,456


Deferred costs, non-current

29,648



36,913


Restricted cash

3,352



3,367


Operating lease right-of-use assets

209,920




Other assets

11,160



7,559


TOTAL ASSETS

$

2,232,915



$

2,196,643


LIABILITIES AND STOCKHOLDERS' EQUITY




CURRENT LIABILITIES:




Accounts payable

$

12,204



$

8,185


Accrued compensation

58,552



53,590


Other contract liabilities, current

7,732



17,177


Other accrued liabilities

25,581



24,548


Operating lease liabilities, current

28,915




Deferred revenue, current

364,442



390,965


Total current liabilities

497,426



494,465


Operating lease liabilities, non-current

197,776




Deferred revenue, non-current

80,729



116,604


Other contract liabilities, non-current

931



1,296


Other liabilities

7,192



22,209


TOTAL LIABILITIES

784,054



634,574


STOCKHOLDERS' EQUITY:




Common stock

14



13


Additional paid-in capital

2,869,406



2,711,340


Accumulated other comprehensive income (loss)

978



(42)


Accumulated deficit

(1,421,537)



(1,149,242)


TOTAL STOCKHOLDERS' EQUITY

1,448,861



1,562,069


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

2,232,915



$

2,196,643


 

Cloudera, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Three Months Ended October 31,


Nine Months Ended October 31,


2019


2018

(As Adjusted)*


2019


2018

(As Adjusted)*









CASH FLOWS FROM OPERATING ACTIVITIES








Net loss

$

(82,122)



$

(25,857)



$

(272,295)



$

(107,128)


Adjustments to reconcile net loss to net cash used in operating activities:








Depreciation and amortization

33,956



2,691



103,020



7,759


Stock-based compensation expense

54,214



21,890



164,818



67,731


Accretion and amortization of marketable securities

(702)



(466)



(2,362)



(661)


Amortization of deferred costs

12,606



7,991



33,579



21,794


Loss (gain) on disposal of fixed assets



(2)



459



(22)


Changes in assets and liabilities:








Accounts receivable

(1,708)



3,973



78,952



38,161


Contract assets

47



(29)



(698)



2,821


Prepaid expenses and other assets

157



(3,949)



(3,056)



8,348


Deferred costs

(15,393)



(7,865)



(37,200)



(21,419)


Accounts payable

7,854



(22)



4,193



561


Accrued compensation

3,767



2,403



(2,323)



(7,034)


Accrued expenses and other liabilities

(6,649)



597



(22,994)



4,210


Other contract liabilities

(325)



(493)



(9,810)



(108)


Deferred revenue

(11,592)



(7,646)



(61,693)



(20,987)


Net cash used in operating activities

(5,890)



(6,784)



(27,410)



(5,974)


CASH FLOWS FROM INVESTING ACTIVITIES








Purchases of marketable securities and other investments

(81,273)



(116,538)



(392,497)



(368,914)


Proceeds from sale of marketable securities and other investments

17,356



3,715



56,741



36,009


Maturities of marketable securities and other investments

96,228



115,300



331,630



346,203


Cash used in business combinations, net of cash acquired

(4,500)





(4,500)




Capital expenditures

(1,767)



(1,628)



(6,488)



(9,291)


Net cash provided by (used in) investing activities

26,044



849



(15,114)



4,007


CASH FLOWS FROM FINANCING ACTIVITIES








Taxes paid related to net share settlement of restricted stock units

(5,439)



(4,094)



(21,085)



(8,482)


Proceeds from employee stock plans

10,413



7,430



19,633



18,760


Net cash provided by (used in) financing activities

4,974



3,336



(1,452)



10,278


Effect of exchange rate changes on cash, cash equivalents and restricted cash



(411)



(1,508)



(1,626)


Net increase (decrease) in cash, cash equivalents and restricted cash

25,128



(3,010)



(45,484)



6,685


Cash, cash equivalents and restricted cash — Beginning of period

91,427



70,994



162,039



61,299


Cash, cash equivalents and restricted cash — End of period

$

116,555



$

67,984



$

116,555



$

67,984



SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION








Cash paid for income taxes

$

1,962



$

1,171



$

5,607



$

3,069


Cash paid for operating lease liabilities

$

2,864



$



$

27,898



$


SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES








Purchases of property and equipment in accounts payable and other accrued liabilities

$

138



$

202



$

138



$

202


Right-of-use assets obtained in exchange for new operating lease liabilities

$

775



$



$

3,741



$



* As adjusted to reflect the impact of the full retrospective adoption of Topic 606.

 

Cloudera, Inc.

Three Months Ended October 31, 2019

GAAP Results Reconciled to Non-GAAP Results

(in thousands, except per share amounts)

(unaudited)



GAAP


Stock-Based
Compensation
Expense


Amortization of
Acquired
Intangible Assets


Non-GAAP

Cost of revenue- Subscription

$

30,224



$

(4,306)



$

(2,761)



$

23,157


Subscription gross margin

82

%


3

%


2

%


86

%

Cost of revenue- Services

27,404



(4,620)





22,784


Services gross margin

13

%


15

%


%


27

%

Gross profit

140,664



8,926



2,761



152,351


Total gross margin

71

%


5

%


1

%


77

%

Research and development

66,657



(19,697)





46,960


Sales and marketing

117,783



(17,400)



(17,264)



83,119


General and administrative

38,691



(8,191)





30,500


Loss from operations

(82,467)



54,214



20,025



(8,228)


Operating margin

(42)

%


27

%


10

%


(4)

%

Net loss

(82,122)



54,214



20,025



(7,883)


Net loss per share, basic and diluted

$

(0.29)



$

0.19



$

0.07



$

(0.03)


 

Cloudera, Inc.

Three Months Ended October 31, 2018

GAAP Results Reconciled to Non-GAAP Results

(in thousands, except per share amounts)

(unaudited) 



GAAP


Stock-Based
Compensation
Expense


Amortization of
Acquired
Intangible Assets


Non-GAAP

Cost of revenue- Subscription

$

13,996



$

(2,016)



$

(622)



$

11,358


Subscription gross margin

86

%


2

%


1

%


89

%

Cost of revenue- Services

15,980



(2,290)





13,690


Services gross margin

12

%


13

%


%


25

%

Gross profit

89,012



4,306



622



93,940


Total gross margin

75

%


4

%


1

%


79

%

Research and development

37,563



(7,805)





29,758


Sales and marketing

55,055



(5,504)



(35)



49,516


General and administrative

22,067



(4,275)





17,792


Loss from operations

(25,673)



21,890



657



(3,126)


Operating margin

(22)

%


18

%


1

%


(3)

%

Net loss

(25,857)



21,890



657



(3,310)


Net loss per share, basic and diluted

$

(0.17)



$

0.14



$



$

(0.02)


Use of Non-GAAP Financial Information

In addition to the reasons stated under "Non-GAAP Financial Measures" above, which are generally applicable to each of the items Cloudera excludes from its non-GAAP financial measures, Cloudera believes it is appropriate to exclude or give effect to certain items for the following reasons:

  • Stock-based compensation expense. We exclude stock-based compensation expense from our non-GAAP financial measures consistent with how we evaluate our operating results and prepare our operating plans, forecasts and budgets. Further, when considering the impact of equity award grants, we focus on overall stockholder dilution rather than the accounting charges associated with such equity grants. The exclusion of the expense facilitates the comparison of results and business outlook for future periods with results for prior periods in order to better understand the long term performance of our business.

 

  • Amortization of acquired intangible assets. We exclude the amortization of acquired intangible assets from our non-GAAP financial measures. Although the purchase accounting for an acquisition necessarily reflects the accounting value assigned to intangible assets, our management team excludes the GAAP impact of acquired intangible assets when evaluating our operating results. Likewise, our management team excludes amortization of acquired intangible assets from our operating plans, forecasts and budgets. The exclusion of the expense facilitates the comparison of results and business outlook for future periods with results for prior periods in order to better understand the long term performance of our business.

 

Cloudera, Inc.

Reconciliation of Non-GAAP Financial Guidance

(unaudited)



Fiscal 2020

(in millions)

Q4


FY

GAAP net loss

($84) - ($78)



($357) - ($351)


Stock-based compensation expense (*)

52



218


Amortization of acquired intangible assets

20



80


Non-GAAP net loss

($12) - ($6)



($59) - ($53)



(*) Stock-based compensation expense is impacted by variables such as stock price and employee behavior, each of which are inherently difficult to forecast.  As a result, the guidance presented above is subject to a number of uncertainties and assumptions that may cause actual results to differ materially.

 

Cloudera, Inc. (PRNewsfoto/Cloudera, Inc.)

 

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SOURCE Cloudera, Inc.

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