Cloudera Reports First Quarter Fiscal Year 2018 Financial Results

PALO ALTO, Calif., June 8, 2017 /PRNewswire/ -- Cloudera (NYSE: CLDR), provider of the leading global platform for machine learning and advanced analytics, today reported results for its first quarter fiscal 2018, ended April 30, 2017. Total revenue was $79.6 million, an increase of 41% from the first quarter fiscal 2017. Subscription revenue was $64.7 million, an increase of 59% from the year-ago period. Subscription revenue represented 81% of total revenue, up from 72% in first quarter fiscal 2017.

"We had a strong first quarter as a public company, making progress against many of our key objectives," said Tom Reilly, chief executive officer at Cloudera. "We are proud of the role that Cloudera is playing in helping solve some of the world's most challenging problems through data. In Q1, we continued our innovation leadership in machine learning with the introduction of Cloudera Data Science Workbench, in IoT with the general availability of Apache Kudu and in cloud analytics with our first Platform-as-a-Service offering, Cloudera Altus. In addition, I am pleased with the success that our customers are experiencing in becoming data- and insight-driven enterprises and its corresponding effect on our business with our net expansion rate of 142% for the quarter."

GAAP loss from operations for the first quarter fiscal 2018 was $222.3 million, compared to a GAAP loss from operations of $43.5 million for the first quarter fiscal 2017. Non-GAAP loss from operations for the quarter was $30.3 million, compared to a non-GAAP loss from operations of $37.0 million in the year-ago period.

Operating cash flow for the quarter was positive $5.0 million compared to operating cash flow of negative $23.6 million in the first quarter fiscal 2017. Our generation of positive operating cash flow in the quarter was driven by strong collections and continued improvement in operating efficiencies.

Based on weighted-average shares outstanding of 38.5 million shares, GAAP net loss per share for the first quarter fiscal 2018 was $5.78 per share, compared to a GAAP net loss per share in the first quarter fiscal 2017 of $1.20 per share, based on weighted-average shares outstanding of 35.9 million shares. First quarter fiscal 2018 GAAP operating results included a $191.1 million stock-based compensation charge primarily due to achievement of the liquidity event vesting condition for the majority of RSUs granted to employees as well as $0.9 million relating to the amortization of acquired intangible assets. Collectively, the impact on net loss per share was negative $4.99 per share. Operating results for the same period a year ago included stock-based compensation expense of $5.7 million and amortization of acquired intangible assets of $0.9 million. First quarter fiscal 2018 GAAP net loss per share was impacted by the timing of our initial public offering as the offering became effective in the first quarter and closed in the second quarter fiscal 2018. See tables below for additional information regarding historical and forward-looking stock-based compensation expenses and shares outstanding.

Based on non-GAAP weighted-average shares outstanding of 114.0 million shares, non-GAAP net loss per share for the first quarter fiscal 2018 was $0.27 per share, compared to non-GAAP net loss per share in the first quarter fiscal 2017 of $0.33 per share, based on non-GAAP weighted-average shares outstanding of 110.8 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, 2017, the company had total cash, cash equivalents, marketable securities and restricted cash of $275.3 million, excluding initial public offering net proceeds of $233.0 million.

Recent Business and Financial Highlights

    --  Subscription revenue was up 59% year-over-year to $64.7 million
    --  Subscription revenue represented 81% of total revenue, up from 72% in
        year-ago period
    --  Non-GAAP subscription gross margin for the quarter was 84%, 500 basis
        points higher than first quarter fiscal 2017
    --  Dollar-based net expansion rate was 142% for the quarter
    --  Introduced Cloudera Data Science Workbench, a self-service data science
        environment that enables data scientists to build, scale and deploy
        machine learning solutions using the most popular programming languages
        and deep learning frameworks
    --  Launched Apache Kudu, an open source datastore designed for real-time
        IoT, time series and database applications
    --  Announced Cloudera Altus, our first Platform-as-a-Service offering --
        designed to deliver the speed, convenience and elasticity of public
        cloud infrastructure, easing the creation for Cloudera customers of new
        cloud workloads and accelerating the migration of existing workloads to
        Cloudera's platform running in the cloud
    --  Launched Solutions Gallery on our company website, featuring more than
        100 business solutions built by partners on our platform

Business Outlook

The outlook for the second quarter fiscal 2018, ending July 31, 2017, is:

    --  Total revenue in the range of $85 to $86 million, representing 32% to
        33% year-over-year growth
    --  Subscription revenue in the range of $70 million to $71 million,
        representing 38% to 40% year-over-year growth
    --  Operating cash flow in the range of negative $30 million to $27 million
    --  Non-GAAP net loss per share in the range of $0.26 to $0.24 per share
    --  Non-GAAP weighted-average shares outstanding of approximately 137
        million shares

The outlook for fiscal 2018, ending January 31, 2018, is:

    --  Total revenue in the range of $345 million to $350 million, representing
        32% to 34% year-over-year growth
    --  Subscription revenue in the range of $280 million to $285 million,
        representing 40% to 42% year-over-year growth
    --  Operating cash flow in the range of negative $72 million to $68 million
    --  Non-GAAP net loss per share in the range of $1.07 to $1.04 per share
    --  Non-GAAP weighted-average shares outstanding of approximately 133
        million shares

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its first quarter fiscal 2018 results and the outlook for its second quarter fiscal 2018 and fiscal 2018 at 2:00 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 Dial-In Number: +1-877-201-0168
    --  Participant International Dial-In Number: +1-647-788-4901
    --  Conference ID: 25758133

About Cloudera
Cloudera delivers the modern platform for machine learning and advanced analytics, built on the latest open source technologies. The world's leading organizations trust Cloudera to help solve their most challenging business problems by efficiently capturing, storing, processing and analyzing vast amounts of data. Learn more at cloudera.com.

Connect with Cloudera
About Cloudera: http://www.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
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 the "Business Outlook" for our second quarter fiscal 2018 and fiscal 2018 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 the final prospectus pursuant to Rule 424(b)(4) filed with the Securities and Exchange Commission, or the SEC, on April 28, 2017 and in our other SEC filings. 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 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 forward-looking non-GAAP gross margins,historical and forward-looking non-GAAP operating income (loss), non-GAAP net loss, non-GAAP net loss per share. These non-GAAP financial measures exclude stock-based compensation, acquisition- and disposition-related expenses (if any), amortization of acquired intangible assets, and charitable contributions made to the Cloudera Foundation 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 assumed conversion of all outstanding shares of preferred stock to common stock and the impact of anti-dilutive RSUs and 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.


                                        Cloudera, Inc.

                        Condensed Consolidated Statements of Operations

                        (in thousands, except share and per share data)

                                          (unaudited)


                                                  Three Months Ended April 30,
                                                 ----------------------------

                                                     2017                       2016
                                                     ----                       ----

    Revenue:

    Subscription                                               $64,671                  $40,672

    Services                                       14,925                     15,813
                                                   ------                     ------

    Total
     revenue                                       79,596                     56,485

    Cost of revenue:(1)
     (2)

    Subscription                                   26,472                      9,351

    Services                                       33,640                     11,684
                                                   ------                     ------

    Total
     cost of
     revenue                                       60,112                     21,035
                                                   ------                     ------

    Gross
     profit                                        19,484                     35,450

    Operating expenses:(1)
     (2)

    Research
     and
     development                                   95,831                     24,515

    Sales
     and
     marketing                                    110,443                     46,142

    General
     and
     administrative                                35,550                      8,309
                                                   ------                      -----

    Total
     operating
     expenses                                     241,824                     78,966
                                                  -------                     ------

    Loss
     from
     operations                                 (222,340)                  (43,516)

    Interest
     income,
     net                                              649                        740

    Other
     income,
     net                                               22                        163
                                                      ---                        ---

    Net loss
     before
     provision
     for
     income
     taxes                                      (221,669)                  (42,613)

     Provision
     for
     income
     taxes                                          (650)                     (500)
                                                     ----                       ----

    Net loss                                                $(222,319)               $(43,113)
                                                             =========                 ========

    Net loss
     per
     share,
     basic
     and
     diluted                                                   $(5.78)                 $(1.20)
                                                                ======                   ======

     Weighted-
     average                                    diluted
     shares
     used in
     computing
     net
     loss
     per
     share,
     basic
     and                                       38,487,424                 35,920,537
                                               ==========                 ==========

    __________

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



                                                 Three Months Ended April 30,
                                                 ----------------------------

                                                     2017                       2016
                                                     ----                       ----

    Cost of
     revenue
     -
     subscription                                              $15,700                     $334

    Cost of
     revenue
     -
     services                                      20,337                        474

    Research
     and
     development                                   67,901                      1,555

    Sales
     and
     marketing                                     60,541                      1,559

    General
     and
     administrative                                26,603                      1,741

    Total
     stock?based
     compensation
     expense                                                  $191,082                   $5,663
                                                              ========                   ======


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



                                                 Three Months Ended April 30,
                                                 ----------------------------

                                                     2017                       2016
                                                     ----                       ----

    Cost of
     revenue
     -
     subscription                                                 $514                     $455

    Sales
     and
     marketing                                        430                        430

    Total
     amortization
     of
     acquired
     intangible
     assets                                                       $944                     $885
                                                                  ====                     ====


                                        Cloudera, Inc.

                       Condensed Consolidated Statements of Operations

                             (as a percentage of total revenues)

                                         (unaudited)


                                               Three Months Ended April 30,
                                               ----------------------------

                                                   2017                        2016
                                                   ----                        ----


    Revenue:

    Subscription                                    81%                                  72%

    Services                                         19                                    28
                                                    ---                                   ---

    Total revenue                                   100                                   100

    Cost of revenue:(1) (2)

    Subscription                                     33                                    16

    Services                                         43                                    21
                                                    ---                                   ---

    Total cost of revenue                            76                                    37

    Gross margin                                     24                                    63
                                                    ---                                   ---

    Operating expenses:(1) (2)

    Research and development                        120                                    43

    Sales and marketing                             139                                    82

    General and
     administrative                                  44                                    15
                                                    ---                                   ---

    Total operating expenses                        303                                   140
                                                    ---                                   ---

    Loss from operations                          (279)                                 (77)

    Interest income, net                              1                                     1

    Other income, net                                 -                                    -
                                                    ---                                  ---

    Net loss before
     provision for income
     taxes                                        (278)                                 (76)

    Provision for income
     taxes                                          (1)                                  (1)
                                                    ---                                   ---

    Net loss                                     (279)%                                (77)%
                                                  =====                                  ====

    __________

    (1) Amounts include stock?based compensation expense as a percentage of total revenue as follows:



                                               Three Months Ended April 30,
                                               ----------------------------

                                                   2017                        2016
                                                   ----                        ----

    Cost of revenue -
     subscription                                   20%                                    -   %

    Cost of revenue -
     services                                        26                                     1

    Research and development                         85                                     3

    Sales and marketing                              76                                     3

    General and
     administrative                                  33                                     3

    Total stock-based
     compensation expense                          240%                                  10%
                                                    ===                                   ===


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



                                               Three Months Ended April 30,
                                               ----------------------------

                                                   2017                        2016
                                                   ----                        ----

    Cost of revenue -
     subscription                                    1%                                   1%

    Sales and marketing                               -                                    1

    Total amortization of
     acquired intangible
     assets                                          1%                                   2%
                                                    ===                                   ===


                                           Cloudera, Inc.

                               Condensed Consolidated Balance Sheets

                                           (in thousands)

                                            (unaudited)


                                                   April 30,              January 31,
                                                         2017                     2017
                                                         ----                     ----

    ASSETS

    CURRENT ASSETS:

    Cash and cash
     equivalents                                                  $51,572               $74,186

    Short-term
     marketable
     securities                                       170,202                  160,770

    Accounts receivable,
     net                                               53,022                  101,549

    Prepaid expenses and
     other current assets                              13,552                   13,197
                                                       ------                   ------

    Total current assets                              288,348                  349,702

    Property and
     equipment, net                                    10,617                   13,104

    Marketable
     securities,
     noncurrent                                        38,117                   20,710

    Intangible assets,
     net                                                6,107                    7,051

    Goodwill                                           31,516                   31,516

    Restricted cash                                    15,448                   15,446

    Other assets                                        6,973                    5,015

    TOTAL ASSETS                                                 $397,126              $442,544
                                                                 ========              ========

    LIABILITIES, REDEEMABLE CONVERTIBLE
     PREFERRED STOCK AND STOCKHOLDERS'
     DEFICIT

    CURRENT LIABILITIES:

    Accounts payable                                               $2,421                $3,550

    Accrued compensation                               20,709                   33,376

    Other accrued
     liabilities                                       12,788                    9,918

    Deferred revenue,
     current portion                                  186,683                  192,242
                                                      -------                  -------

    Total current
     liabilities                                      222,601                  239,086

    Deferred revenue,
     less current portion                              26,313                   25,182

    Other liabilities                                   3,993                    4,345
                                                        -----                    -----

    TOTAL LIABILITIES                                 252,907                  268,613
                                                      -------                  -------

    Redeemable
     convertible
     preferred stock                                  657,687                  657,687

    STOCKHOLDERS' DEFICIT:

    Common stock                                            2                        2

    Additional paid-in
     capital                                          385,359                  192,795

    Accumulated other
     comprehensive loss                                 (513)                   (556)

    Accumulated deficit                             (898,316)               (675,997)
                                                     --------                 --------

    TOTAL STOCKHOLDERS'
     DEFICIT                                        (513,468)               (483,756)
                                                     --------                 --------

    TOTAL LIABILITIES,
     REDEEMABLE
     CONVERTIBLE
     PREFERRED STOCK AND
     STOCKHOLDERS'
     DEFICIT                                                     $397,126              $442,544
                                                                 ========              ========


                                            Cloudera, Inc.

                           Condensed Consolidated Statements of Cash Flows

                                            (in thousands)

                                             (unaudited)


                                                         Three Months Ended April 30,
                                                       ----------------------------

                                                            2017                     2016
                                                            ----                     ----

    CASH FLOWS FROM OPERATING
     ACTIVITIES

    Net loss                                                       $(222,319)                 $(43,113)

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

    Depreciation
     and
     amortization                                          3,642                    2,405

    Stock-based
     compensation                                        191,082                    5,663

    Accretion and
     amortization
     of marketable
     securities                                              542                      782

    Changes in assets and
     liabilities:

    Accounts
     receivable                                           48,527                   15,863

    Prepaid
     expenses and
     other assets                                          1,379                    1,319

    Accounts
     payable                                             (1,921)                   (972)

    Accrued
     compensation                                       (12,667)                 (9,437)

    Accrued
     expenses and
     other
     liabilities                                           1,142                      855

    Deferred
     revenue                                             (4,428)                   3,081
                                                          ------                    -----

    Net cash
     provided by
     (used in)
     operating
     activities                                            4,979                 (23,554)
                                                           -----                  -------

    CASH FLOWS FROM INVESTING
     ACTIVITIES

    Purchases of
     marketable
     securities                                        (110,347)                (40,044)

    Sales of
     marketable
     securities                                           31,675                   19,441

    Maturities of
     marketable
     securities                                           51,420                   64,665

    Cash used in
     business
     combinations,
     net of cash
     acquired                                                  -                 (2,700)

    Capital
     expenditures                                          (175)                 (5,149)
                                                            ----                   ------

    Net cash
     provided by
     (used in)
     investing
     activities                                         (27,427)                  36,213
                                                         -------                   ------

    CASH FLOWS FROM FINANCING
     ACTIVITIES

    Proceeds from
     exercise of
     stock options                                         1,482                      829

    Payment of
     deferred
     offering costs                                      (1,647)                       -
                                                          ------

    Net cash
     provided by
     (used in)
     financing
     activities                                            (165)                     829
                                                            ----                      ---

    Effect of
     exchange rate
     changes                                                   1                      238
                                                             ---                      ---

    Net increase
     (decrease) in
     cash, cash
     equivalents
     and restricted
     cash                                               (22,612)                  13,726

    Cash, cash
     equivalents
     and restricted
     cash -
     Beginning of
     period                                               89,632                   35,994
                                                          ------                   ------

    Cash, cash
     equivalents
     and restricted
     cash -End of
     period                                                           $67,020                    $49,720
                                                                      =======                    =======

    SUPPLEMENTAL DISCLOSURES OF
     CASH FLOW INFORMATION

    Cash paid for
     income taxes                                                        $629                       $397
                                                                         ====                       ====

    SUPPLEMENTAL DISCLOSURES OF
     NON-CASH INVESTING AND
     FINANCING ACTIVITIES

    Purchases of
     property and
     equipment in
     other accrued
     liabilities                                                          $71                       $419
                                                                          ===                       ====

    Deferred
     offering costs
     in accounts
     payable and
     other accrued
     liabilities                                                       $1,190               $          -
                                                                       ======             ===        ===


                                                                                                      Cloudera, Inc.

                                                                                            Three Months Ended April 30, 2017

                                                                                       GAAP Results Reconciled to non-GAAP Results

                                                                                         (in thousands, except per share amounts)

                                                                                                       (unaudited)


                         GAAP                Stock-based            Amortization of                Non-GAAP                      Non-GAAP
                                           compensation               acquired               weighted-average
                                              expense            intangible assets                shares
                                                                                               outstanding
                                                                                                                                        ---

    Cost of revenue-
     Subscription                  $26,472                                          $(15,700)                                               $(514)          $       - $10,258

    Subscription gross
     margin                   59%                            24%                                             1%                                 -   %    84%

    Cost of revenue-
     Services              33,640                        (20,337)                                              -                                 -     13,303

    Services gross
     margin                (125)%                           136%                                              -   %                             -   %    11%

    Gross profit           19,484                          36,037                                             514                                  -     56,035

    Total gross margin        24%                            45%                                             1%                                 -   %    70%

    Research and
     development           95,831                        (67,901)                                              -                                 -     27,930

    Sales and marketing   110,443                        (60,541)                                          (430)                                 -     49,472

    General and
     administrative        35,550                        (26,603)                                              -                                 -      8,947

    Loss from
     operations         (222,340)                        191,082                                             944                                  -   (30,314)

    Operating margin       (279)%                           240%                                             1%                                 -   %  (38)%

    Net loss            (222,319)                        191,082                                             944                                  -   (30,293)

    Net loss per share,
     basic and diluted
     (1)                          $(5.78)                                             $4.97                                                 $0.02               $0.52  $(0.27)

    ___________

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


                                                                                                   Cloudera, Inc.

                                                                                          Three Months Ended April 30, 2016

                                                                                     GAAP Results Reconciled to non-GAAP Results

                                                                                      (in thousands, except per share amounts)

                                                                                                     (unaudited)


                        GAAP                Stock-based           Amortization of              Non-GAAP                      Non-GAAP
                                          compensation              acquired             weighted-average
                                             expense           intangible assets              shares
                                                                                           outstanding
                                                                                                                                    ---

    Cost of revenue-
     Subscription                  $9,351                                          $(334)                                               $(455)         $       - $8,562

    Subscription gross
     margin                  77%                            1%                                           1%                                 -   %   79%

    Cost of revenue-
     Services             11,684                          (474)                                            -                                 -    11,210

    Services gross
     margin                  26%                            3%                                            -   %                             -   %   29%

    Gross profit          35,450                            808                                           455                                  -    36,713

    Total gross margin       63%                            1%                                           1%                                 -   %   65%

    Research and
     development          24,515                        (1,555)                                            -                                 -    22,960

    Sales and marketing   46,142                        (1,559)                                        (430)                                 -    44,153

    General and
     administrative        8,309                        (1,741)                                            -                                 -     6,568

    Loss from
     operations         (43,516)                         5,663                                           885                                  0   (36,968)

    Operating margin       (77)%                           10%                                           2%                                0%     (65)%

    Net loss            (43,113)                         5,663                                           885                                  0   (36,565)

    Net loss per share,
     basic and diluted
     (1)                         $(1.20)                                          $0.16                                                 $0.02              $0.69 $(0.33)

    ___________

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


                                                                   Cloudera, Inc.

                                     GAAP weighted-average shares reconciled to non-GAAP weighted-average shares

                                                                   (in thousands)

                                                                     (unaudited)


                                                                                                                  Three Months Ended April 30,
                                                                                                                 ----------------------------

                                                                                                                            2017                  2016
                                                                                                                            ----                  ----

    GAAP weighted-average shares, basic and diluted                                                                       38,487                35,921

    Assumed preferred stock conversion                                                                                    74,907                74,907

    Assumed IPO issuance                                                                                                     582                     -
                                                                                                                             ---                   ---

    Non-GAAP weighted-average shares, diluted                                                                            113,976               110,828

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.
    --  Assumed preferred stock conversion. For periods prior to the closing of
        our initial public offering on May 3, 2017, we give effect to the
        automatic conversion of all outstanding shares of preferred stock to
        common stock, as if such conversion had occurred at the beginning of the
        period, in our calculations of non-GAAP weight-average shares, diluted,
        and non-GAAP net loss per share, diluted. The inclusion of these shares
        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.
    --  Assumed IPO issuance. We include the common shares issued in our IPO, on
        a weighted basis, as if the shares were issued on the date of our
        effectiveness. Our IPO was effective in the first quarter of fiscal 2018
        and closed in the second quarter of fiscal 2018.

                                  Cloudera, Inc.

                  Reconciliation of non-GAAP Financial Guidance

                                   (unaudited)


                                  Fiscal 2018
                                  -----------

    (in
     millions)                        Q2                         FY
    ----------                        ---                       ---

    GAAP
     net
     loss                                 ($80) - (79)              ($455) - (453)

    Stock-
     based
     compensation
     expense(1)                                41 - 43                   308 - 310

     Amortization
     of
     acquired
     intangible
     assets                                          1                            3

     Donation
     to
     Cloudera
     Foundation                                      2                            2

    Non-
     GAAP
     net
     loss                                 ($36) - (33)              ($142) - (138)


    GAAP
     weighted-
     average
     shares,
     basic
     and
     diluted                                 133 - 135                   112 - 114

    Assumed
     preferred
     stock
     conversion                                      2                           19

    Assumed
     IPO
     issuance                                        1                            1
                                                   ---                          ---

    Non-
     GAAP
     weighted-
     average
     shares,
     diluted                                 136 - 138                   132 - 134


    (1) Stock-based compensation
     expense in fiscal 2018 is
     expected to be $38 million to $40
     million in the third quarter and
     $34 million to $38 million in the
     fourth quarter. These amounts are
     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.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cloudera-reports-first-quarter-fiscal-year-2018-financial-results-300471359.html

SOURCE Cloudera