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Cloudera Reports Third Quarter Fiscal 2021 Financial Results

December 03, 2020

SANTA CLARA, Calif., Dec. 3, 2020 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its third quarter of fiscal 2021, ended October 31, 2020. Total revenue for the third quarter was $217.9 million, an increase of 10% as compared to the third quarter of fiscal 2020. Subscription revenue was $197.4 million, an increase of 18% as compared to the third quarter of fiscal 2020. Annualized Recurring Revenue grew 12% year-over-year.

"In the third quarter, CDP Private Cloud became generally available, we announced three new upcoming cloud-native services on CDP Public Cloud, and the number of CDP Public Cloud paying customers increased by more than 40%. With CDP Private Cloud now in-market, our hybrid multi-cloud offerings can be implemented by customers and our Enterprise Data Cloud vision is nearly complete. We are beginning to see an acceleration of migrations by existing customers from legacy Cloudera and Hortonworks platforms to CDP," said Rob Bearden, chief executive officer, Cloudera. "We believe that Cloudera has never been better-positioned to capture more of the rapidly growing data management and analytics market opportunity for hybrid multi-cloud solutions. As a result, we have announced today that the board has authorized the repurchase of an additional $500 million in shares of our stock."

Third Quarter Fiscal 2021 Results

  • GAAP loss from operations for the third quarter of fiscal 2021 was $12.3 million, compared to $82.5 million for the third quarter of fiscal 2020
  • Non-GAAP income from operations for the third quarter of fiscal 2021 was $49.3 million, compared to a non-GAAP loss from operations of $8.2 million for the third quarter of fiscal 2020
  • Operating cash flow for the third quarter of fiscal 2021 was $18.4 million, compared to negative $5.9 million for the third quarter of fiscal 2020
  • GAAP net loss per share for the third quarter of fiscal 2021 was $0.04 per share, compared to $0.29 per share for the third quarter of fiscal 2020
  • Non-GAAP net income per share for the third quarter of fiscal 2021 was $0.15 per share, compared to a non-GAAP net loss per share of $0.03 per share for the third quarter of fiscal 2020

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, 2020, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $567.5 million.

Recent Business and Financial Highlights

  • Annualized Recurring Revenue at the conclusion of the third quarter of fiscal 2021 was $756 million, representing 12% year-over-year growth
  • GAAP subscription gross margin for the quarter was 87%, up from 82% in the third quarter of fiscal 2020
  • Non-GAAP subscription gross margin for the quarter was 91%, up from 86% in the third quarter of fiscal 2020
  • Cloudera recognized as a leader in The Forrester Wave(TM): Notebook-Based Predictive Analytics and Machine Learning, Q3 2020
  • Acquired Eventador, a provider of cloud-native services for streaming analytics, to deliver more customer value for real-time analytics use cases
  • Three new enterprise data cloud services designed specifically for data specialists were announced for Cloudera Data Platform (CDP): CDP Data Engineering; CDP Operational Database; and CDP Data Visualization

Business Outlook

The outlook for the fourth quarter of fiscal 2021, ending January 31, 2021 is:

  • Total revenue in the range of $219 million to $222 million
  • Subscription revenue in the range of $199 million to $202 million
  • Non-GAAP operating income in the range of $35 million to $40 million
  • Non-GAAP net income per share in the range of $0.10 to $0.12 per share
  • Diluted weighted-average share count of approximately 323 million shares

The outlook for fiscal 2021, ending January 31, 2021, is:

  • Total revenue in the range of $862 million to $865 million
  • Subscription revenue in the range of $775 million to $778 million
  • Non-GAAP operating income in the range of $131 million to $136 million
  • Non-GAAP net income per share in the range of $0.40 to $0.42 per share
  • Diluted weighted-average share count of approximately 317 million shares

The business outlook is based on the assumption that the recessionary impact of the coronavirus pandemic (COVID-19) will continue at least through Cloudera's fourth quarter fiscal 2021.

Share Repurchase Authorization

Cloudera's board of directors has authorized the repurchase of up to an additional $500 million in shares of our common stock, through open market purchases, block trades and/or in privately negotiated transactions, pursuant to Rule 10b5-1 plans, or other repurchase mechanisms, in compliance with applicable securities laws and other legal requirements. The timing, volume and nature of any repurchases will be determined by Cloudera's management based on their evaluation of the capital needs of the business, market conditions, applicable legal requirements and other factors. The repurchase program will be executed consistent with our capital allocation strategy, balancing investment to grow the business over the long-term and return of capital to shareholders. No time limit was set for the completion of the repurchase program, the program may be suspended or discontinued at any time and the program does not obligate Cloudera to purchase any shares. The amount of shares Cloudera has been authorized to repurchase may be increased or decreased at any time by our board of directors. The repurchase program is conditioned upon the closing of an institutional term loan, which we believe can be closed during our current fiscal quarter. Cloudera currently expects to fund the repurchase program using proceeds from this term loan, and/or with our existing cash or cash generated from operations. Cloudera's ability to secure proceeds from and the timing of closing such an institutional term loan are subject to market conditions and other factors beyond our control.

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its third quarter fiscal 2021 results and the outlook for its fourth quarter of fiscal 2021 and full year fiscal 2021 at 1:30 p.m. 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: +1-833-579-0900
  • Participant International Number: +1-778-560-2567
  • Conference ID: 2257327

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: https://www.cloudera.com/about.html  
Read our VISION blog: https://blog.cloudera.com and Engineering blog: https://blog.cloudera.com  
Follow us on Twitter: https://twitter.com/cloudera and LinkedIn: https://www.linkedin.com/company/cloudera  
Visit us on Facebook: https://www.facebook.com/cloudera  
See us on YouTube: https://www.youtube.com/user/clouderahadoop  
Join the Cloudera Community: https://community.cloudera.com  
Read about our customers' successes: https://www.cloudera.com/about/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 assumptions, goals and targets, including our "Business Outlook" for our fourth quarter of fiscal 2021 and our full year fiscal 2021 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, the impact of and uncertainties related to COVID-19, 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 our SEC filings on the SEC's website at www.sec.gov. Additionally, these forward-looking statements, particularly our guidance, involve risk, uncertainties and assumptions, including those related to the impact of COVID-19 on our business and global economic conditions. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, the timeframes for and severity of the impact of COVID-19 on our customers' purchasing decisions and the length of our sales cycles, particularly for customers in certain industries highly affected by COVID-19. 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 operating margin, and historical and forward-looking non-GAAP income/loss from operations, non-GAAP net income/loss, and non-GAAP net income/loss per share. These non-GAAP financial measures exclude stock-based compensation, acquisition and disposition-related expenses (if any), extraordinary non-cash real estate impairment charges (if any), and amortization of acquired intangible assets from our 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 financial statement tables titled "Use of Non-GAAP Financial Information" as well as the related financial statement 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 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. ARR does not reflect non-recurring partner revenue, subscription revenue with certain related parties, custom engineering, remote operation and management services, or 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,


2020


2019


2020


2019

Revenue:








Subscription

$

197,355



$

166,932



$

575,962



$

485,872


Services

20,544



31,360



66,733



96,599


Total revenue

217,899



198,292



642,695



582,471


Cost of revenue:(1) (2)








Subscription

25,243



30,224



81,808



88,636


Services

16,804



27,404



64,119



87,355


Total cost of revenue

42,047



57,628



145,927



175,991


Gross profit

175,852



140,664



496,768



406,480


Operating expenses:(1) (2)








Research and development

56,306



66,657



182,826



196,572


Sales and marketing

97,952



117,783



316,847



349,657


General and administrative 

33,923



38,691



101,765



135,568


Total operating expenses

188,181



223,131



601,438



681,797


Loss from operations

(12,329)



(82,467)



(104,670)



(275,317)


Interest income

1,201



2,756



4,886



9,203


Other income (expense), net

(1,398)



(46)



(2,915)



291


Loss before provision for income taxes

(12,526)



(79,757)



(102,699)



(265,823)


Provision for income taxes

(1,419)



(2,365)



(5,257)



(6,472)


Net loss

$

(13,945)



$

(82,122)



$

(107,956)



$

(272,295)


Net loss per share, basic and diluted

$

(0.04)



$

(0.29)



$

(0.36)



$

(0.98)


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

311,009



283,267



302,185



277,260


 

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



Three Months Ended October 31,


Nine Months Ended October 31,


2020


2019


2020


2019

Cost of revenue – subscription

$

3,384



$

4,306



$

11,060



$

12,314


Cost of revenue – service

2,372



4,620



9,363



13,076


Research and development

16,372



19,697



53,253



55,991


Sales and marketing

11,806



17,400



41,660



46,199


General and administrative

7,922



8,191



26,575



37,238


Total stock-based compensation expense

$

41,856



$

54,214



$

141,911



$

164,818




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



Three Months Ended October 31,


Nine Months Ended October 31,


2020


2019


2020


2019

Cost of revenue – subscription

$

3,144



$

2,761



$

9,303



$

8,358


Sales and marketing

16,605



17,264



49,798



51,764


Total amortization of acquired intangible assets

$

19,749



$

20,025



$

59,101



$

60,122


 

Cloudera, Inc.

Condensed Consolidated Balance Sheets

(in thousands)



October 31,
2020


January 31,
2020


(unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$

96,114



$

107,638


Marketable securities

298,711



253,361


Accounts receivable, net

172,424



249,971


Deferred costs

44,922



54,776


Prepaid expenses and other current assets

28,502



42,155


Total current assets

640,673



707,901


Property and equipment, net

20,247



21,988


Marketable securities, non-current

169,324



122,193


Intangible assets, net

551,835



605,236


Goodwill

599,291



590,361


Deferred costs, non-current

30,365



35,260


Operating lease right-of-use assets

187,469



204,642


Other assets

10,961



12,209


TOTAL ASSETS

$

2,210,165



$

2,299,790


LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

2,556



$

3,858


Accrued compensation

56,029



61,826


Other contract liabilities

7,895



12,225


Other accrued liabilities

22,902



22,297


Operating lease liabilities

29,422



19,181


Deferred revenue

401,943



460,561


Total current liabilities

520,747



579,948


Operating lease liabilities, non-current

176,244



192,324


Deferred revenue, non-current

57,958



81,926


Other accrued liabilities, non-current

5,683



7,223


TOTAL LIABILITIES

760,632



861,421


STOCKHOLDERS' EQUITY:




Common stock

16



15


Additional paid-in capital

3,044,290



2,923,905


Accumulated other comprehensive income

(195)



273


Accumulated deficit

(1,594,578)



(1,485,824)


TOTAL STOCKHOLDERS' EQUITY

1,449,533



1,438,369


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

2,210,165



$

2,299,790


 

Cloudera, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Three Months Ended October 31,


Nine Months Ended October 31,


2020


2019


2020


2019









CASH FLOWS FROM OPERATING ACTIVITIES








Net loss  

$

(13,945)



$

(82,122)



$

(107,956)



$

(272,295)


Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:








Depreciation and amortization  

22,077



22,957



67,016



69,123


 Non-cash lease expense

11,516



10,999



34,208



33,897


Stock-based compensation expense 

41,856



54,214



141,911



164,818


Amortization of deferred costs

17,340



12,606



50,750



33,579


Other

3,261



(702)



8,387



(1,903)


Changes in assets and liabilities:








Accounts receivable  

(24,273)



(1,708)



76,067



78,952


Prepaid expenses and other assets  

(120)



204



14,508



(3,754)


Deferred costs

(13,711)



(15,393)



(36,001)



(37,200)


Accounts payable  

(1,268)



7,854



(2,098)



4,193


Accrued compensation  

(3,579)



3,767



(10,225)



(2,323)


Other accrued liabilities  

832



(3,785)



(3,447)



4,904


 Other contract liabilities

(456)



(203)



(4,330)



(9,445)


Operating lease liabilities

(3,525)



(2,864)



(24,731)



(27,898)


Deferred revenue  

(17,640)



(11,714)



(84,889)



(62,058)


Net cash provided by (used in) operating activities  

18,365



(5,890)



119,170



(27,410)


CASH FLOWS FROM INVESTING ACTIVITIES








Purchases of marketable securities

(121,631)



(81,273)



(395,200)



(392,497)


Proceeds from sale of marketable securities

6,150



17,356



110,322



56,741


Maturities of marketable securities

67,960



96,228



191,670



331,630


Cash used in business combinations, net of cash acquired  

(12,358)



(4,500)



(12,358)



(4,500)


Capital expenditures  

(2,875)



(1,767)



(7,305)



(6,488)


Net cash (used in) provided by investing activities  

(62,754)



26,044



(112,871)



(15,114)


CASH FLOWS FROM FINANCING ACTIVITIES








Repurchases of common stock





(25,974)




Taxes paid related to net share settlement of restricted stock units

(6,352)



(5,439)



(29,635)



(21,085)


Proceeds from employee stock plans

4,552



10,413



38,191



19,633


Net cash (used in) provided by financing activities  

(1,800)



4,974



(17,418)



(1,452)


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

(868)





(405)



(1,508)


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

(47,057)



25,128



(11,524)



(45,484)


Cash, cash equivalents and restricted cash — Beginning of period

146,523



91,427



110,990



162,039


Cash, cash equivalents and restricted cash — End of period 

$

99,466



$

116,555



$

99,466



$

116,555


 

Reconciliation of cash, cash equivalents and restricted cash as shown in the statement of cash flows:



As of October 31,



2020


2019

Cash and cash equivalents


$

96,114



$

113,203


Restricted cash included in Other assets


3,352



3,352


Total cash, cash equivalents and restricted cash


$

99,466



$

116,555


 

Cloudera, Inc.

Three Months Ended October 31, 2020

GAAP Results Reconciled to Non-GAAP Results

(in thousands, except percentage and per share amounts)

(unaudited)



GAAP


Stock-Based
Compensation
Expense


Amortization of
Acquired
Intangible Assets


Non-GAAP

Cost of revenue- Subscription

$

25,243



$

(3,384)



$

(3,144)



$

18,715


Subscription gross margin

87

%


2

%


2

%


91

%

Cost of revenue- Services

16,804



(2,372)





14,432


Services gross margin

18

%


12

%


%


30

%

Gross profit

175,852



5,756



3,144



184,752


Total gross margin

81

%


3

%


1

%


85

%

Research and development

56,306



(16,372)





39,934


Sales and marketing

97,952



(11,806)



(16,605)



69,541


General and administrative

33,923



(7,922)





26,001


(Loss) income from operations

(12,329)



41,856



19,749



49,276


Operating margin

(6)

%


19

%


9

%


23

%

Net (loss) income

(13,945)



41,856



19,749



47,660


Net (loss) income per share, basic

(0.04)



0.13



0.06



0.15


Net (loss) income per share, diluted (1)

$

(0.04)



$

0.13



$

0.06



$

0.15



(1) See below for a reconciliation of weighted-average shares outstanding used to calculate non-GAAP net income per share

 

Cloudera, Inc.

Three Months Ended October 31, 2019

GAAP Results Reconciled to Non-GAAP Results

(in thousands, except percentage and 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.

Reconciliation of weighted-average shares used for non-GAAP net income per share

(in thousands)

(unaudited) 



Three Months Ended October 31,


2020


2019

Weighted-average shares, basic

311,009



283,267


Effect of dilutive securities:




Stock options, unvested restricted stock units and ESPP

7,647




Weighted-average shares, diluted

318,656



283,267


 

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 we exclude from our non-GAAP financial measures, we believe 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.
  • Extraordinary non-cash real estate impairment charges. We currently lease approximately 225,000 square feet of space for our former corporate headquarters in Palo Alto, California under a lease agreement that expires in 2027. Upon the completion of the merger with Hortonworks, we added approximately 92,000 square feet of space in Santa Clara, California under a lease agreement that expires in 2026 and we relocated our corporate headquarters to this space during the second quarter of fiscal 2021. Extraordinary non-cash real estate impairment charges relate to potential charges that we may incur as a result of future activities with respect to our leased office locations.

 

Cloudera, Inc.

Reconciliation of Non-GAAP Financial Guidance

(unaudited)



Fiscal 2021

(in millions)

Q4


FY

GAAP operating loss

($30) - ($25)


($135) - ($130)

Stock-based compensation expense (*)

46


188

Amortization of acquired intangible assets

19


78

Non-GAAP operating income

$35 - $40


$131 - $136



Fiscal 2021

(in millions)

Q4


FY

GAAP net loss

($32) - ($26)


($139) - ($134)

Stock-based compensation expense (*)

46


188

Amortization of acquired intangible assets

19


78

Non-GAAP net income

$33 - $39


$127 - $132


(*) Stock-based compensation expense is impacted by a number of variables, 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.

 

 


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SOURCE Cloudera, Inc.

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Press Contact:
Madge Miller
Cloudera
press@cloudera.com
+1 (888) 789 1488

Investor Relations Contact:
Kevin Cook
Cloudera
investor-relations@cloudera.com
+1 (650) 644-3900