Cloudera Reports Fourth Quarter and Fiscal Year 2018 Financial Results
Cloudera Reports Fourth Quarter and Fiscal Year 2018 Financial Results
- Q4 revenue up 42% year-over-year
- Q4 subscription revenue up 50% year-over-year
- Net expansion rate of 136%
PALO ALTO, Calif., April 3, 2018 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the modern platform for machine learning and analytics optimized for the cloud, reported results for its fourth quarter and fiscal year 2018, ended January 31, 2018. Total revenue was $103.5 million, an increase of 42% from the fourth quarter of fiscal 2017. Subscription revenue was $84.3 million, an increase of 50% from the year-ago period.
"It was a year of considerable accomplishment for Cloudera and our team. In our first few quarters as a public company, we introduced six major product offerings, completed a strategic acquisition, and delivered significant technological innovations -- with the open source community and also proprietary to our products," said Tom Reilly, chief executive officer at Cloudera. "Most enterprises are just embarking on their digital transformation journeys. In a rapidly evolving and disruptive market, we believe the investments we've made have us well-positioned to lead them on that journey."
GAAP loss from operations for the fourth quarter of fiscal 2018 was $45.7 million, compared to a GAAP loss from operations of $61.0 million for the fourth quarter of fiscal 2017. Non-GAAP loss from operations for the fourth quarter of fiscal 2018 was $16.6 million, compared to a non-GAAP loss from operations of $33.4 million in the year-ago period.
Operating cash flow for the fourth quarter of fiscal 2018 was negative $22.0 million compared to operating cash flow of negative $31.9 million in the fourth quarter of fiscal 2017.
GAAP net loss per share for the fourth quarter of fiscal 2018 was $0.31 per share, based on weighted-average shares outstanding of 142.9 million shares, compared to a GAAP net loss per share in the fourth quarter of fiscal 2017 of $1.67 per share, based on weighted-average shares outstanding of 36.8 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 fourth quarter of fiscal 2018 was $0.10 per share, based on non-GAAP weighted-average shares outstanding of 142.9 million shares, compared to non-GAAP net loss per share in the fourth quarter of fiscal 2017 of $0.30 per share, based on non-GAAP weighted-average shares outstanding of 111.7 million shares.
For fiscal year 2018, total revenue was $367.4 million, an increase of 41% year-over-year. Subscription revenue was $301.0 million, an increase of 50% year-over-year, and equaled 82% of total revenue, up from 77% for fiscal year 2017.
GAAP loss from operations for fiscal year 2018 was $390.3 million compared to GAAP loss from operations of $187.3 million in fiscal year 2017. Non-GAAP loss from operations for fiscal year 2018 was $96.6 million compared to non-GAAP loss from operations of $140.3 million in fiscal year 2017.
Operating cash flow for fiscal year 2018 was negative $42.3 million compared to operating cash flow of negative $116.6 million in fiscal year 2017.
GAAP net loss per share for fiscal year 2018 was $3.38 per share, based on weighted-average shares outstanding of 114.1 million shares, compared to a GAAP net loss per share in fiscal year 2017 of $5.15 per share, based on weighted-average shares outstanding of 36.4 million shares.
Non-GAAP net loss per share for fiscal year 2018 was $0.69 per share, based on non-GAAP weighted-average shares outstanding of 133.1 million shares, compared to non-GAAP net loss per share for fiscal year 2017 of $1.26 per share, based on non-GAAP weighted-average shares outstanding of 111.3 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 January 31, 2018, the company had total cash, cash equivalents, marketable securities and restricted cash of $460.7 million.
Recent Business and Financial Highlights
Fourth Quarter Fiscal 2018:
-- Subscription revenue was up 50% year-over-year to $84.3 million
-- Non-GAAP subscription gross margin for the quarter was 86%, more than
200 basis points higher than the fourth quarter of fiscal 2017
-- Dollar-based net expansion rate was 136% for the quarter
-- International revenue grew 66% year-over-year
-- 32 net new Global 8000 customers added
-- Non-GAAP operating loss improved approximately 3,000 basis points as
compared to the year-ago quarter
-- Cloudera Altus was named a winner of the 2017-2018 Cloud Awards for Most
Innovative Use of Data in the Cloud
(https://www.cloud-awards.com/2018-shortlist/)
-- Cloudera was recognized on four separate occasions for leading security
industry awards
(https://www.cloudera.com/more/news-and-blogs/press-releases/2018-03-28-
cloudera-wins-multiple-awards-for-cybersecurity-innovation-and-leadershi
p.html)
-- Cloudera was named a winner of two IoT Breakthrough Awards, the Overall
Connected Car Innovation of the Year (with Navistar) and Connected Car
Insurance Solution of the Year (with Octo Telematics)
(http://iotbreakthrough.com/winners/)
Full Year Fiscal 2018:
-- Subscription revenue was up 50% year-over-year to $301.0 million
-- Non-GAAP subscription gross margin for the year was 85%, more than 300
basis points higher than fiscal year 2017
-- International revenue grew 62% year-over-year
-- 132 net new Global 8000 customers added
-- Non-GAAP operating loss improved more than 2,700 basis points as
compared to the prior fiscal year
Business Outlook
The outlook for the first quarter of fiscal 2019, ending April 30, 2018, is:
-- Total revenue in the range of $101 million to $102 million, representing
approximately 28% year-over-year growth
-- Subscription revenue in the range of $85 million to $86 million,
representing approximately 32% year-over-year growth
-- Non-GAAP net loss per share in the range of $0.19 to $0.17 per share
-- Weighted-average shares outstanding of approximately 147 million shares
The outlook for fiscal 2019, ending January 31, 2019, is:
-- Total revenue in the range of $435 million to $445 million, representing
approximately 20% year-over-year growth
-- Subscription revenue in the range of $370 million to $375 million,
representing approximately 24% year-over-year growth
-- Operating cash flow in the range of negative $40 million to $35 million
-- Non-GAAP net loss per share in the range of $0.62 to $0.59 per share
-- Weighted-average shares outstanding of approximately 152 million shares
Conference Call and Webcast Information
Cloudera is hosting a conference call for analysts and investors to discuss its fourth quarter and full year fiscal 2018 results and the outlook for its first quarter of fiscal 2019 and full year fiscal 2019 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 Number: +1-833-231-7247
Participant International Number: +1-647-689-4091
Conference ID: 3093228
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. We deliver the modern platform for machine learning and analytics optimized for the cloud. The world's largest enterprises trust Cloudera to help solve their most challenging business problems. Learn more at www.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
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.
Global 8000 Customer List
We periodically update the Global 8000 list based on the FORBES Global 2000 list and information from Data.com, using the most recently published FORBES Global 2000 list (which is updated by Forbes annually) and the most recent Data.com information (which is continuously updated by Data.com). Our customer count is subject to ongoing adjustment and, when adjustments occur, previously disclosed numbers of customers are updated to allow for comparability.
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 our belief that the enterprise machine learning and analytics market will quickly emerge and that we will continue to lead its direction through technology and product innovation, our expectation that we will continue our momentum in machine learning, analytics and the cloud, and our "Business Outlook" for our first quarter of fiscal 2019 and full year fiscal 2019 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 most recently filed Quarterly Report on Form 10?Q filed with the SEC on December 8, 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 non-GAAP subscription gross margins, non-GAAP loss from operations, non-GAAP net loss, and historical and forward-looking non-GAAP net loss per share. These non-GAAP financial measures exclude stock-based compensation, acquisition- and disposition-related expenses (if any), amortization of acquired intangible assets, and donations of common stock 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.
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 per share data)
(unaudited)
Three Months Ended January 31, Year Ended January 31,
------------------------------ ----------------------
2018 2017 2018 2017
---- ---- ---- ----
Revenue:
Subscription $84,260 $56,159 $301,022 $200,252
Services 19,190 16,668 66,421 60,774
Total revenue 103,450 72,827 367,443 261,026
------- ------ ------- -------
Cost of revenue:(1) (2)
Subscription 14,729 9,860 70,902 38,704
Services 18,098 12,315 87,133 48,284
Total cost of revenue 32,827 22,175 158,035 86,988
Gross profit 70,623 50,652 209,408 174,038
------ ------ ------- -------
Operating expenses:(1) (2) (3)
Research and development 38,925 25,191 215,695 102,309
Sales and marketing 61,828 55,911 298,467 203,161
General and
administrative 15,548 30,598 85,539 55,907
Total operating expenses 116,301 111,700 599,701 361,377
------- ------- ------- -------
Loss from operations (45,678) (61,048) (390,293) (187,339)
Interest income, net 1,560 613 5,150 2,756
Other income (expense),
net 1,080 (236) 1,429 (547)
Net loss before provision
for income taxes (43,038) (60,671) (383,714) (185,130)
Provision for income
taxes (869) (761) (2,079) (2,187)
Net loss $(43,907) $(61,432) $(385,793) $(187,317)
======== ======== ========= =========
Net loss per share, basic
and diluted $(0.31) $(1.67) $(3.38) $(5.15)
====== ====== ====== ======
Weighted-average shares
used in computing net
loss per share, basic
and diluted 142,857 36,836 114,141 36,406
======= ====== ======= ======
(1) Amounts include stock?based compensation expense as follows (in thousands):
Three Months Ended January 31, Year Ended January 31,
------------------------------ ----------------------
2018 2017 2018 2017
---- ---- ---- ----
Cost of revenue -
subscription $2,683 $375 $24,826 $1,426
Cost of revenue -
services 3,429 440 31,843 1,803
Research and development 10,004 1,280 100,143 5,606
Sales and marketing 7,672 1,261 90,420 5,757
General and
administrative 4,538 1,800 42,774 7,122
Total stock?based
compensation expense $28,326 $5,156 $290,006 $21,714
======= ====== ======== =======
(2) Amounts include amortization of acquired intangible assets as follows (in thousands):
Three Months Ended January 31, Year Ended January 31,
------------------------------ ----------------------
2018 2017 2018 2017
---- ---- ---- ----
Cost of revenue -
subscription $622 $514 $2,230 $1,997
Sales and marketing 178 431 1,493 1,723
Total amortization of
acquired intangible
assets $800 $945 $3,723 $3,720
==== ==== ====== ======
(3) In January 2017, we donated
1,175,063 shares of common stock
to the Cloudera Foundation. We
recorded a non cash charge of
$21.6 million for the fair value
of the donated shares, which was
recognized in general and
administrative expense in the
fourth quarter of fiscal 2017.
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(as a percentage of total revenues)
(unaudited)
Three Months Ended January 31, Year Ended January 31,
------------------------------ ----------------------
2018 2017 2018 2017
---- ---- ---- ----
Revenue:
Subscription 81% 77% 82% 77%
Services 19 23 18 23
--- --- --- ---
Total revenue 100 100 100 100
Cost of revenue:(1) (2)
Subscription 14 14 19 15
Services 18 16 24 18
--- --- --- ---
Total cost of revenue 32 30 43 33
Gross profit 68 70 57 67
--- --- --- ---
Operating expenses:(1) (2) (3)
Research and development 37 35 59 39
Sales and marketing 60 76 81 78
General and
administrative 15 42 23 21
--- --- --- ---
Total operating expenses 112 153 163 138
--- --- --- ---
Loss from operations (44) (84) (106) (72)
Interest income, net 1 1 1 1
Other income (expense),
net 1 - - -
--- --- --- ---
Net loss before provision
for income taxes (42) (83) (105) (71)
Provision for income
taxes - (1) - (1)
--- --- --- ---
Net loss (42)% (84)% (105)% (72)%
==== ==== ===== ====
(1) Amounts include stock?based compensation expense as a percentage of total revenue as follows:
Three Months Ended Year Ended January 31,
January 31,
-----------
2018 2017 2018 2017
---- ---- ---- ----
Cost of revenue -
subscription 3% 1% 7% 1%
Cost of revenue -
services 3 1 9 1
Research and development 10 2 27 2
Sales and marketing 7 1 24 1
General and
administrative 4 2 12 3
Total stock-based
compensation expense 27% 7% 79% 8%
=== === === ===
(2) Amounts include amortization of acquired intangible assets as a percentage of total revenue as follows:
Three Months Ended Year Ended January 31,
January 31,
-----------
2018 2017 2018 2017
---- ---- ---- ----
Cost of revenue -
subscription 1% 1% 1% 1%
Sales and marketing - - - -
Total amortization of
acquired intangible
assets 1% 1% 1% 1%
=== === === ===
(3) As a percentage of revenue,
the non cash expense recognized
for the donation of common
stock to the Cloudera
Foundation for the three months
ended and year ended January
31, 2017 was 29% and 8%,
respectively.
Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
January 31, 2018 January 31, 2017
---------------- ----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $43,247 $74,186
Short-term marketable
securities 327,842 160,770
Accounts receivable, net 130,579 101,549
Prepaid expenses and other
current assets 31,470 13,197
------ ------
Total current assets 533,138 349,702
Property and equipment, net 17,600 13,104
Marketable securities,
noncurrent 71,580 20,710
Intangible assets, net 5,855 7,051
Goodwill 33,621 31,516
Restricted cash 18,052 15,446
Other assets 9,312 5,015
TOTAL ASSETS $689,158 $442,544
======== ========
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $2,722 $3,550
Accrued compensation 41,393 33,376
Other accrued liabilities 13,454 9,918
Deferred revenue, current
portion 257,141 192,242
------- -------
Total current liabilities 314,710 239,086
Deferred revenue, less current
portion 34,870 25,182
Other liabilities 16,601 4,345
------ -----
TOTAL LIABILITIES 366,181 268,613
------- -------
Redeemable convertible
preferred stock - 657,687
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock 7 2
Additional paid-in capital 1,385,592 192,795
Accumulated other comprehensive
loss (832) (556)
Accumulated deficit (1,061,790) (675,997)
---------- --------
TOTAL STOCKHOLDERS' EQUITY
(DEFICIT) 322,977 (483,756)
------- --------
TOTAL LIABILITIES, REDEEMABLE
CONVERTIBLE PREFERRED STOCK
AND STOCKHOLDERS' EQUITY
(DEFICIT) $689,158 $442,544
======== ========
Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended Year Ended January 31,
January 31,
-----------
2018 2017 2018 2017
---- ---- ---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(43,907) $(61,432) $(385,793) $(187,317)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 2,407 2,663 12,102 10,134
Stock-based compensation 28,326 5,156 290,006 21,714
Donation of common stock to
the Cloudera Foundation - 21,574 - 21,574
Accretion and amortization of
marketable securities (145) 447 512 2,867
Loss on disposal of fixed
assets - - (111) -
Release of deferred tax
valuation allowance - - (806) -
Changes in assets and liabilities:
Accounts receivable (64,324) (53,995) (28,788) (52,139)
Prepaid expenses and other
assets (10,735) (3,678) (16,194) (3,300)
Accounts payable 1,659 (1,191) (667) (281)
Accrued compensation 6,410 6,894 5,179 11,222
Accrued expenses and other
liabilities (1,337) (3,782) 8,105 (284)
Deferred revenue 59,660 55,402 74,187 59,249
Net cash used in operating
activities (21,986) (31,942) (42,268) (116,561)
------- ------- ------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable
securities (106,172) - (620,329) (103,776)
Sales of marketable
securities 21,633 23,517 79,069 74,655
Maturities of marketable
securities 87,820 52,560 321,552 207,792
Cash used in business
combinations, net of cash
acquired - - (1,937) (2,700)
Capital expenditures (3,949) (451) (12,954) (7,385)
Proceeds from sale of
equipment - - 145 -
Net cash provided by (used
in) investing activities (668) 75,626 (234,454) 168,586
---- ------ -------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from (payments
for) issuance of common
stock in initial public
offering - (2,056) 237,422 (2,056)
Net proceeds from issuance of
common stock in follow-on
offering (795) - 46,008 -
Shares withheld related to
net share settlement of
restricted stock units (9,278) - (59,781) -
Proceeds from employee stock
plans 12,452 1,041 23,673 3,594
Net cash provided by
financing activities 2,379 (1,015) 247,322 1,538
Effect of exchange rate
changes 727 69 1,067 75
--- --- ----- ---
Net increase (decrease) in
cash, cash equivalents and
restricted cash (19,548) 42,738 (28,333) 53,638
Cash, cash equivalents and
restricted cash -Beginning
of year 80,847 46,894 89,632 35,994
Cash, cash equivalents and
restricted cash -End of
year $61,299 $89,632 $61,299 $89,632
======= ======= ======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for income taxes $854 $658 $2,694 $1,689
==== ==== ====== ======
SUPPLEMENTAL DISCLOSURES OF NON-CASH
INVESTING AND FINANCING ACTIVITIES
Purchases of property and
equipment in other accrued
liabilities $1,130 $44 $1,130 $44
====== === ====== ===
Fair value of common stock
issued as consideration for
business combinations $ - $ - $2,081 $ -
=== === === === ====== === ===
Deferred offering costs in
accounts payable and other
accrued liabilities $ - $747 $ - $747
=== === ==== === === ====
Conversion of redeemable
convertible preferred stock
to common stock $ - $ - $657,687 $ -
=== === === === ======== === ===
Cloudera, Inc.
Three Months Ended January 31, 2018
GAAP Results Reconciled to non-GAAP Results
(in thousands, except per share amounts)
(unaudited)
GAAP Stock-based Amortization of Non-GAAP
compensation acquired
expense intangible assets
---
Cost of revenue-
Subscription $14,729 $(2,683) $(622) $11,424
Subscription gross
margin 83% 3% 1% 86%
Cost of revenue-
Services 18,098 (3,429) - 14,669
Services gross
margin 6% 18% - % 24%
Gross profit 70,623 6,112 622 77,357
Total gross margin 68% 6% 1% 75%
Research and
development 38,925 (10,004) - 28,921
Sales and marketing 61,828 (7,672) (178) 53,978
General and
administrative 15,548 (4,538) - 11,010
Loss from operations (45,678) 28,326 800 (16,552)
Operating margin (44)% 27% 1% (16)%
Net Loss (43,907) 28,326 800 (14,781)
Net loss per share,
basic and diluted $(0.31) $0.20 $0.01 $(0.10)
Cloudera, Inc.
Three Months Ended January 31, 2017
GAAP Results Reconciled to non-GAAP Results
(in thousands, except per share amounts)
(unaudited)
GAAP Stock-based Amortization of Donation to Non-GAAP Non-GAAP
compensation acquired Cloudera weighted-
expense intangible Foundation average
assets shares
outstanding
---
Cost of revenue-
Subscription $9,860 $(375) $(514) $ - $ - $8,971
Subscription gross
margin 82% 1% 1% - % - % 84%
Cost of revenue-
Services 12,315 (440) - - - 11,875
Services gross
margin 26% 3% - % - % - % 29%
Gross profit 50,652 815 514 - - 51,981
Total gross margin 70% 1% 1% - % - % 71%
Research and
development 25,191 (1,280) - - - 23,911
Sales and marketing 55,911 (1,261) (431) - - 54,219
General and
administrative 30,598 (1,800) - (21,574) - 7,224
Loss from operations (61,048) 5,156 945 21,574 - (33,373)
Operating margin (84)% 7% 1% 29% - % (46)%
Net Loss (61,432) 5,156 945 21,574 - (33,757)
Net loss per share,
basic and diluted
(1) $(1.67) $0.14 $0.03 $0.59 $0.61 $(0.30)
(1) See below for a reconciliation of
weighted-average shares
outstanding used to calculate
non-GAAP net loss per share
Cloudera, Inc.
Twelve Months Ended January 31, 2018
GAAP Results Reconciled to non-GAAP Results
(in thousands)
(unaudited)
GAAP Stock-based Amortization of Non-GAAP Non-GAAP
compensation acquired weighted-
expense intangible average shares
assets outstanding
---
Cost of revenue-
Subscription $70,902 $(24,826) $(2,230) $ - $43,846
Subscription gross
margin 76% 8% 1% - % 85%
Cost of revenue-
Services 87,133 (31,843) - - 55,290
Services gross
margin (31)% 48% - % - % 17%
Gross profit 209,408 56,669 2,230 - 268,307
Total gross margin 57% 15% 1% - % 73%
Research and
development 215,695 (100,143) - - 115,552
Sales and marketing 298,467 (90,420) (1,493) - 206,554
General and
administrative 85,539 (42,774) - - 42,765
Loss from operations (390,293) 290,006 3,723 - (96,564)
Operating margin (106)% 79% 1% - % (26)%
Net Loss (385,793) 290,006 3,723 - (92,064)
Net loss per share,
basic and diluted
(1) $(3.38) $2.54 $0.03 $0.12 $(0.69)
(1) See below for a reconciliation of
weighted-average shares
outstanding used to calculate
non-GAAP net loss per share
Cloudera, Inc.
Twelve Months Ended January 31, 2017
GAAP Results Reconciled to non-GAAP Results
(in thousands)
(unaudited)
GAAP Stock-based Amortization of Donation to Non-GAAP Non-GAAP
compensation acquired Cloudera weighted-
expense intangible Foundation average
assets shares
outstanding
---
Cost of revenue-
Subscription $38,704 $(1,426) $(1,997) $ - $ - $35,281
Subscription gross
margin 81% 1% 1% - % - % 82%
Cost of revenue-
Services 48,284 (1,803) - - - 46,481
Services gross
margin 21% 3% - % - % - % 24%
Gross profit 174,038 3,229 1,997 - - 179,264
Total gross margin 67% 1% 1% - % - % 69%
Research and
development 102,309 (5,606) - - - 96,703
Sales and marketing 203,161 (5,757) (1,723) - - 195,681
General and
administrative 55,907 (7,122) - (21,574) - 27,211
Loss from operations (187,339) 21,714 3,720 21,574 - (140,331)
Operating margin (72)% 8% 1% 8% - % (54)%
Net Loss (187,317) 21,714 3,720 21,574 - (140,309)
Net loss per share,
basic and diluted
(1) $(5.15) $0.60 $0.10 $0.59 $2.60 $(1.26)
(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 Year Ended January 31,
January 31,
-----------
2018 2017 2018 2017
---- ---- ---- ----
GAAP weighted-
average shares,
basic and diluted 142,857 36,836 114,141 36,406
Assumed preferred
stock conversion - 74,907 18,676 74,907
Assumed IPO
issuance - - 236 -
--- --- --- ---
Non-GAAP
weighted-average
shares, diluted 142,857 111,743 133,053 111,313
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.
-- Donation of common stock to the Cloudera Foundation. During the fourth
quarter of fiscal 2017, we issued 1,175,063 shares of common stock to
the Cloudera Foundation for no consideration. This resulted in a
one?time non?cash charge of $21.6 million, which was recorded in general
and administrative expenses on the consolidated statement of operations.
Our management team does not consider this expense when evaluating our
operating performance and we do not expect to make future grants of
shares to the Cloudera Foundation and therefore consider this charge
non?recurring and exclude the GAAP impact of the donation when
evaluating our operating results. 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 (IPO) 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 weighted-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 2019
-----------
(in
millions) Q1 FY
---------- --- ---
GAAP net
loss ($58) - (55) ($213) - (209)
Stock-
based
compensation
expense
(1) 29 116
Amortization
of
acquired
intangible
assets 1 3
Non-GAAP
net loss ($28) - (25) ($94) - (90)
(1) 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.
CONTACT: Investor Relations Contact: Kevin Cook, investor-relations@cloudera.com, +1 (650) 644-3900 or Press Contact: Deborah Wiltshire, press@cloudera.com, +1 (650) 644-3900
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SOURCE Cloudera, Inc.
