Wed Jun 5, 2019 3:10pm EST

PALO ALTO, Calif., June 5, 2019 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its first quarter of fiscal year 2020 ended April 30, 2019. Total revenue for the first quarter was $187.5 million, and subscription revenue was $154.8 million. Annualized recurring revenue grew 21% year-over-year.

"We continue to make substantial progress toward our goal of delivering the industry's first enterprise data cloud, designed for powerful analytics across hybrid and multi-cloud environments with common security and governance," said Tom Reilly, chief executive officer, Cloudera. "Our enterprise customers are excited about extending their analytic workloads to the public cloud through Cloudera Data Platform, which will be available this summer. While some customers in the first quarter elected to postpone renewal and expansion of their agreements in anticipation of the new platform's release, affecting our full year outlook, this customer feedback and enthusiasm validates demand for enterprise data cloud solutions in our target market. Customers are benefiting from our offerings today, solving complex data management and analytic use cases spanning the Edge to AI, and we look forward to helping them accelerate their journey to the cloud with Cloudera Data Platform."

All numbers reported for prior periods are presented for Cloudera on a standalone basis since the merger with Hortonworks, Inc. closed on January 3, 2019, and, as such, there is no comparative year-over-year financial information for the combined company.

GAAP loss from operations for the first quarter of fiscal 2020 was $103.8 million, compared to a GAAP loss from operations of $51.7 million for the first quarter of fiscal 2019.

Non-GAAP loss from operations for the first quarter of fiscal 2020 was $34.7 million, compared to a non-GAAP loss from operations of $25.7 million for the first quarter of fiscal 2019.

Operating cash flow for the first quarter of fiscal 2020, which includes $25.0 million of merger-related payments, was $11.5 million, compared to operating cash flow of $24.4 million for the first quarter of fiscal 2019.

GAAP net loss per share for the first quarter of fiscal 2020 was $0.38 per share, based on weighted-average shares outstanding of 271.4 million shares, compared to a GAAP net loss per share of $0.36 per share for the first quarter of fiscal 2019, based on weighted-average shares outstanding of 146.7 million shares. See financial statement tables below for additional information regarding historical and forward-looking stock-based compensation expenses and shares outstanding.

Non-GAAP net loss per share for the first quarter of fiscal 2020 was $0.13 per share, based on weighted-average shares outstanding of 271.4 million shares, compared to a non-GAAP net loss per share of $0.18 per share for the first quarter of fiscal 2019, based on weighted-average shares outstanding of 146.7 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 April 30, 2019, the company had total cash, cash equivalents, marketable securities and restricted cash of $547.5 million.

Recent Business and Financial Highlights

Today, we separately announced the planned retirement of Chief Executive Officer, Tom Reilly, and the appointment of Martin Cole, Chairman of the Board, as interim Chief Executive Officer.

First Quarter Fiscal 2020:

  • Annualized recurring revenue was $672.0 million, representing 21% year-over-year growth
  • Non-GAAP subscription gross margin for the quarter was 85%
  • Operating cash flow was $11.5 million, including $25.0 million of merger-related payments
  • Customers with annualized recurring revenue greater than $100,000 were 929
  • Expanded partnership with IBM to include all Cloudera product offerings and to add services
  • Brought to market two new products: Cloudera Edge Management, an edge management solution for IoT and streaming data, and Cloudera Flow Management, a no-code, high-scale data ingestion, and management solution

Business Outlook

The outlook for the second quarter of fiscal 2020, ending July 31, 2019, is:

  • Total revenue in the range of $180 million to $183 million
  • Subscription revenue in the range of $155 million to $157 million
  • Non-GAAP net loss per share in the range of $0.11 to $0.08 per share
  • Weighted-average shares outstanding of approximately 274 million shares

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

  • Annualized recurring revenue growth of 0% to 10%
  • Total revenue in the range of $745 million to $765 million
  • Subscription revenue in the range of $635 million to $645 million
  • Operating cash flow in the range of negative $95 million to negative $75 million, including $59 million of non-recurring merger-related payments
  • Non-GAAP net loss per share in the range of $0.32 to $0.28 per share
  • Weighted-average shares outstanding of approximately 280 million shares

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its first quarter of fiscal 2020 results and the outlook for its second 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: 2193887

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 the timing of the release of the Cloudera Data Platform, expectations regarding the acceptance by our enterprise customers of enterprise data cloud and the Cloudera Data Platform, and our "Business Outlook" for our second 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 Quarterly Report 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 gross margins, non-GAAP subscription gross margins, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss, historical and forward-looking non-GAAP net loss per share, and adjusted annualized recurring revenue. 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 condensed consolidated statement of operations. In addition, we use non-GAAP weighted-average shares outstanding to calculate non-GAAP net loss per share. This non-GAAP measure includes the impact of anti-dilutive restricted stock units and stock options outstanding, on a weighted basis.

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 will 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 excludes 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 April 30,


2019


2018

(As Adjusted)*

Revenue:




Subscription

$

154,838



$

86,763


Services

32,630



16,696


Total revenue

187,468



103,459


Cost of revenue:(1) (2)




Subscription

29,337



15,807


Services

31,896



17,544


Total cost of revenue

61,233



33,351


Gross profit

126,235



70,108


Operating expenses:(1) (2)




Research and development

64,173



43,664


Sales and marketing

119,383



61,810


General and administrative 

46,432



16,336


Total operating expenses

229,988



121,810


Loss from operations

(103,753)



(51,702)


Interest income, net

3,291



1,807


Other income (expense), net

233



(1,121)


Net loss before provision for income taxes

(100,229)



(51,016)


Provision for income taxes

(2,901)



(1,306)


Net loss

$

(103,130)



$

(52,322)


Net loss per share, basic and diluted

$

(0.38)



$

(0.36)


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

271,352



146,678



* 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 April 30,


2019


2018

Cost of revenue – subscription

$

3,819



$

2,548


Cost of revenue – services

4,260



2,474


Research and development

17,841



9,861


Sales and marketing

13,364



6,079


General and administrative

9,587



4,404


Total stock-based compensation expense

$

48,871



$

25,366






(2)

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



Three Months Ended April 30,


2019


2018

Cost of revenue – subscription

$

2,910



$

622


Sales and marketing

17,250



35


 Total amortization of acquired intangible assets

$

20,160



$

657


 

Cloudera, Inc.

Condensed Consolidated Statements of Operations

(as a percentage of total revenue)

(unaudited)



Three Months Ended April 30,


2019


2018

(As Adjusted)*

Revenue:




Subscription

83

%


84

%

Services

17



16


Total revenue

100



100


Cost of revenue:(1) (2)




Subscription

16



15


Services

17



17


Total cost of revenue

33



32


Gross profit

67



68


Operating expenses:(1) (2)




Research and development

34



42


Sales and marketing

64



60


General and administrative 

25



16


Total operating expenses

123



118


Loss from operations

(56)



(50)


Interest income, net

2



2


Other income (expense), net



(1)


Net loss before provision for income taxes

(54)



(49)


Provision for income taxes

(1)



(1)


Net loss

(55)

%


(50)

%


* 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 April 30,


2019


2018

Cost of revenue – subscription

2

%


3

%

Cost of revenue – services

2



2


Research and development

10



10


Sales and marketing

7



6


General and administrative

5



4


 Total stock-based compensation expense

26

%


25

%



(2)

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



Three Months Ended April 30,


2019


2018

Cost of revenue – subscription

2

%


1

%

Sales and marketing

9




 Total amortization of acquired intangible assets

11

%


1

%

 

Cloudera, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)



April 30,

2019


January 31,

2019

ASSETS




CURRENT ASSETS:




Cash and cash equivalents

$

107,362



$

158,672


Marketable securities, current

337,283



322,005


Accounts receivable, net

146,009



242,980


Contract assets

5,355



4,824


Deferred costs

36,877



32,100


Prepaid expenses and other current assets

27,121



38,281


Total current assets

660,007



798,862


Property and equipment, net

26,546



27,619


Marketable securities, non-current

99,474



56,541


Intangible assets, net

659,166



679,326


Goodwill

587,336



586,456


Deferred costs, non-current

31,896



36,913


Restricted cash

3,352



3,367


Operating lease right-of-use assets

231,983




Other assets

10,474



7,559


TOTAL ASSETS

$

2,310,234



$

2,196,643


LIABILITIES AND STOCKHOLDERS' EQUITY




CURRENT LIABILITIES:




Accounts payable

$

5,322



$

8,185


Accrued compensation

44,648



53,590


Other contract liabilities, current

12,055



17,177


Other accrued liabilities

22,267



24,548


Operating lease liabilities, current

25,650




Deferred revenue, current

375,691



390,965


Total current liabilities

485,633



494,465


Operating lease liabilities, non-current

218,043




Deferred revenue, non-current

97,419



116,604


Other contract liabilities, non-current

1,174



1,296


Other liabilities

4,615



22,209


TOTAL LIABILITIES

806,884



634,574


STOCKHOLDERS' EQUITY:




Common stock

14



13


Additional paid-in capital

2,755,408



2,711,340


Accumulated other comprehensive loss

300



(42)


Accumulated deficit

(1,252,372)



(1,149,242)


TOTAL STOCKHOLDERS' EQUITY

1,503,350



1,562,069


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

2,310,234



$

2,196,643


 

Cloudera, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Three Months Ended April 30,


2019


2018

(As Adjusted)*





CASH FLOWS FROM OPERATING ACTIVITIES




Net loss

$

(103,130)



$

(52,322)


Adjustments to reconcile net loss to net cash provided by operating activities:




Depreciation and amortization

34,631



2,392


Stock-based compensation expense

48,871



25,366


Accretion and amortization of marketable securities

(925)



15


Amortization of deferred costs

9,652



6,563


Loss (gain) on disposal of fixed assets

415



(20)


Changes in assets and liabilities:




Accounts receivable

95,496



65,840


Contract assets

(531)



2,845


Prepaid expenses and other assets

9



8,167


Deferred costs

(9,412)



(4,530)


Accounts payable

(2,605)



(121)


Accrued compensation

(12,530)



(14,627)


Accrued expenses and other liabilities

(28)



821


Other contract liabilities

(5,244)



233


Operating lease liabilities

(11,079)




Deferred revenue

(32,130)



(16,259)


Net cash provided by operating activities

11,460



24,363


CASH FLOWS FROM INVESTING ACTIVITIES




Purchases of marketable securities and other investments

(196,453)



(114,243)


Proceeds from sale of marketable securities and other investments

9,271



13,256


Maturities of marketable securities and other investments

129,998



114,213


Capital expenditures

(2,693)



(4,214)


Net cash (used in) provided by investing activities

(59,877)



9,012


CASH FLOWS FROM FINANCING ACTIVITIES




Taxes paid related to net share settlement of restricted stock units

(7,797)



(906)


Proceeds from employee stock plans

5,949



7,081


Net cash (used in) provided by financing activities

(1,848)



6,175


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

(1,060)



(381)


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

(51,325)



39,169


Cash, cash equivalents and restricted cash — Beginning of period

162,039



61,299


Cash, cash equivalents and restricted cash — End of period

$

110,714



$

100,468


 


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION




Cash paid for income taxes

$

1,882



$

1,161


Cash paid for operating lease liabilities

$

11,079



$


SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES




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

$

49



$

1,706


Right-of-use assets obtained in exchange of lease obligations

$

4,161



$



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

 

Cloudera, Inc.

Three Months Ended April 30, 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

$

29,337



$

(3,819)



$

(2,910)



$

22,608


Subscription gross margin

81

%


2

%


2

%


85

%

Cost of revenue- Services

31,896



(4,260)





27,636


Services gross margin

2

%


13

%


%


15

%

Gross profit

126,235



8,079



2,910



137,224


Total gross margin

67

%


4

%


2

%


73

%

Research and development

64,173



(17,841)





46,332


Sales and marketing

119,383



(13,364)



(17,250)



88,769


General and administrative

46,432



(9,587)





36,845


Loss from operations

(103,753)



48,871



20,160



(34,722)


Operating margin

(55)

%


26

%


11

%


(19)

%

Net loss

(103,130)



48,871



20,160



(34,099)


Net loss per share, basic and diluted

$

(0.38)



$

0.18



$

0.07



$

(0.13)


 

Cloudera, Inc.

Three Months Ended April 30, 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

$

15,807



$

(2,548)



$

(622)



$

12,637


Subscription gross margin

82

%


3

%


1

%


85

%

Cost of revenue- Services

17,544



(2,474)





15,070


Services gross margin

(5)

%


15

%


%


10

%

Gross profit

70,108



5,022



622



75,752


Total gross margin

68

%


5

%


1

%


73

%

Research and development

43,664



(9,861)





33,803


Sales and marketing

61,810



(6,079)



(35)



55,696


General and administrative

16,336



(4,404)





11,932


Loss from operations

(51,702)



25,366



657



(25,679)


Operating margin

(50)

%


25

%


1

%


(25)

%

Net loss

(52,322)



25,366



657



(26,299)


Net loss per share, basic and diluted

$

(0.36)



$

0.17



$



$

(0.18)


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)

Q2


FY

GAAP net loss

($97) - ($89)



($361) - ($349)


Stock-based compensation expense (*)

47



193


Amortization of acquired intangible assets

20



78


Non-GAAP net loss

($30) - ($22)



($90) - ($78)



(*) 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.

 

 

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SOURCE Cloudera, Inc.



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