Cloudera Reports First Quarter Fiscal Year 2019 Financial Results
PALO ALTO, Calif., June 6, 2018 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the modern platform for machine learning and analytics optimized for the cloud, today reported results for its first quarter fiscal 2019, ended April 30, 2018. Total revenue was $102.7 million, an increase of 29% from the first quarter of fiscal 2018. Subscription revenue was $85.9 million, an increase of 33% from the first quarter of fiscal 2018. Subscription revenue represented 84% of total revenue, up from 81% in the first quarter of fiscal 2018.
"The rapidly connecting world is driving every enterprise in every industry to go through a digital transformation in order to remain competitive in this modern era. Data is the foundation of digital transformation. A completely new architecture and set of technologies is required for enterprises to leverage and gain meaningful insight from data," said Tom Reilly, chief executive officer. "To better-position Cloudera for the next evolution of the market -- machine learning, analytics and cloud -- we are focusing our innovation and go-to-market initiatives on these high growth areas and the line of business executives responsible for digital transformation."
GAAP loss from operations for the first quarter of fiscal 2019 was $50.4 million, compared to a GAAP loss from operations of $222.3 million for the first quarter of fiscal 2018. Non-GAAP loss from operations for the first quarter of fiscal 2019 was $24.4 million, compared to a non-GAAP loss from operations of $30.3 million in the year-ago period.
Operating cash flow for the first quarter of fiscal 2019 was $24.4 million compared to operating cash flow of $5.0 million in the first quarter of fiscal 2018.
GAAP net loss per share for the first quarter of fiscal 2019 was $0.35 per share, based on weighted-average shares outstanding of 146.7 million shares, compared to a GAAP net loss per share in the first quarter of fiscal 2018 of $5.78 per share, based on weighted-average shares outstanding of 38.5 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 2019 was $0.17 per share, based on non-GAAP weighted-average shares outstanding of 146.7 million shares, compared to non-GAAP net loss per share in the first quarter of fiscal 2018 of $0.27 per share, based on non-GAAP weighted-average shares outstanding of 114.0 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, 2018, the company had total cash, cash equivalents, marketable securities and restricted cash of $486.7 million.
Recent Business and Financial Highlights
-- Subscription revenue was up 33% year-over-year to $85.9 million
-- Subscription revenue represented 84% of total revenue, up from 81% in
the first quarter of fiscal 2018
-- Non-GAAP subscription gross margin for the quarter was 85%, up from 84%
in the first quarter of fiscal 2018
-- Dollar-based net expansion rate was 132% for the quarter
-- Non-GAAP operating loss improved more than 14 percentage points compared
to the year-ago period
-- Introduced Altus with Shared Data Experience (beta), or SDX, the
industry's first machine learning and analytics Platform-as-a-Service
that provides and retains business context for shared cloud-based data
https://www.cloudera.com/more/news-and-blogs/press-releases/2018-03-06-c
loudera-introduces-the-industrys-first-machine-learning-and-analytics-pl
atform-as-a-service-built-with-a-shared-data-experience-sdx.html
-- Released Altus Data Engineering for Azure and announced availability of
Altus Analytic Database for Azure (beta), powering machine learning on
Microsoft Azure
https://www.cloudera.com/more/news-and-blogs/press-releases/2018-05-21-c
loudera-accelerates-enterprise-machine-learning-from-research-to-product
ion.html
-- Announced Cloudera Data Science Workbench 1.4, with new capabilities to
build, train, and deploy models in a unified workflow helping data
scientists accelerate everyday workflows from research to production
https://www.cloudera.com/more/news-and-blogs/press-releases/2018-05-21-c
loudera-accelerates-enterprise-machine-learning-from-research-to-product
ion.html
-- Announced availability of Cloudera Enterprise 6 (beta), Cloudera's most
powerful platform for machine learning and analytics with significant
advances in performance and enterprise quality showcasing innovations in
search, streaming, scale and control
https://www.cloudera.com/more/news-and-blogs/press-releases/2018-05-21-c
loudera-accelerates-enterprise-machine-learning-from-research-to-product
ion.html
-- Recognized by customers as a 2018 Gartner Peer Insights Customers'
Choice for Data Management Solutions for Analytics
https://www.gartner.com/reviews/market/data-warehouse-solutions/vendor/c
loudera
-- Big Data Excellence Awards
-- Big Data Technology Provider of the Year
-- IoT Infrastructure of the Year (with partners Red Hat and Eurotech)
http://events.computing.co.uk/bigdataexcellence/static/2018-winners
-- Named General Managers to newly formed business units to accelerate
innovation and leadership in machine learning, analytics, and cloud
https://www.cloudera.com/more/news-and-blogs/press-releases/2018-04-26-c
loudera-introduces-new-business-units-to-accelerate-innovation-and-leade
rship-in-machine-learning-analytics-and-cloud.html
Business Outlook
The outlook for the second quarter of fiscal 2019, ending July 31, 2018, is:
-- Total revenue in the range of $107 million to $108 million, representing
approximately 20% year-over-year growth
-- Subscription revenue in the range of $90 million to $91 million,
representing approximately 22% year-over-year growth
-- Non-GAAP net loss per share in the range of $0.15 to $0.13 per share
-- Weighted-average shares outstanding of approximately 150 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 first quarter fiscal 2019 results and the outlook for its second quarter of 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: 3085608
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.
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 second quarter of fiscal 2019. Readers are cautioned that actual results could differ materially from those implied by such forward-looking statements due to a variety of factors, including global economic conditions, competitive pressures and pricing declines, intellectual property infringement claims, and other risks or uncertainties that are described under the caption "Risk Factors" in our Annual Report on Form 10-K, filed on April 4, 2018, 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, non-GAAP operating loss margin, and historical and forward-looking non-GAAP net loss per share. These non-GAAP financial measures exclude stock-based compensation, acquisition- and disposition-related expenses (if any), and amortization of acquired intangible assets from the Cloudera unaudited 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 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.
About Gartner Peer Insights
Gartner Peer Insights Customers' Choice distinctions are determined by the subjective opinions of individual end-user customers based on their own experiences, the number of published reviews on Gartner Peer Insights and overall ratings for a given vendor in the market, as further described here, and are not intended in any way to represent the views of Gartner or its affiliates.
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended April 30,
----------------------------
2018 2017
---- ----
Revenue:
Subscription $85,899 $64,671
Services 16,808 14,925
------ ------
Total revenue 102,707 79,596
------- ------
Cost of revenue:(1) (2)
Subscription 15,807 26,472
Services 17,544 33,640
------ ------
Total cost of revenue 33,351 60,112
Gross profit 69,356 19,484
------ ------
Operating expenses:(1) (2)
Research and development 43,664 95,831
Sales and marketing 59,777 110,443
General and
administrative 16,336 35,550
------ ------
Total operating expenses 119,777 241,824
------- -------
Loss from operations (50,421) (222,340)
Interest income, net 1,807 649
Other income (expense),
net (1,121) 22
------ ---
Net loss before
provision for income
taxes (49,735) (221,669)
Provision for income
taxes (1,306) (650)
------ ----
Net loss $(51,041) $(222,319)
======== =========
Net loss per share,
basic and diluted $(0.35) $(5.78)
====== ======
Weighted-average shares
used in computing net
loss per share, basic
and diluted 146,678 38,487
======= ======
(1) Amounts include stock-based compensation expense as follows (in thousands):
Three Months Ended April 30,
----------------------------
2018 2017
---- ----
Cost of revenue -
subscription $2,548 $15,700
Cost of revenue -
services 2,474 20,337
Research and development 9,861 67,901
Sales and marketing 6,079 60,541
General and
administrative 4,404 26,603
Total stock?based
compensation expense $25,366 $191,082
======= ========
(2) Amounts include amortization of acquired intangible assets as follows (in thousands):
Three Months Ended April 30,
----------------------------
2018 2017
---- ----
Cost of revenue -
subscription $622 $514
Sales and marketing 35 430
--- ---
Total amortization of
acquired intangible
assets $657 $944
==== ====
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(as a percentage of total revenues)
(unaudited)
Three Months Ended April 30,
----------------------------
2018 2017
---- ----
Revenue:
Subscription 84% 81%
Services 16 19
--- ---
Total revenue 100 100
Cost of revenue:(1) (2)
Subscription 15 33
Services 17 43
--- ---
Total cost of revenue 32 76
Gross profit 68 24
--- ---
Operating expenses:(1) (2)
Research and development 43 120
Sales and marketing 58 139
General and
administrative 16 44
--- ---
Total operating expenses 117 303
--- ---
Loss from operations (49) (279)
Interest income, net 1 1
Other income (expense),
net (1) -
--- ---
Net loss before
provision for income
taxes (49) (278)
Provision for income
taxes (1) (1)
--- ---
Net loss (50)% (279)%
==== =====
(1) Amounts include stock-based compensation expense as a percentage of total revenue as
follows:
Three Months Ended April 30,
----------------------------
2018 2017
---- ----
Cost of revenue -
subscription 3% 20%
Cost of revenue -
services 2 26
Research and development 10 85
Sales and marketing 6 76
General and
administrative 4 33
Total stock-based
compensation expense 25% 240%
=== ===
(2) Amounts include amortization of acquired intangible assets as a percentage of total revenue
as follows:
Three Months Ended April 30,
----------------------------
2018 2017
---- ----
Cost of revenue -
subscription 1% 1%
Sales and marketing - -
Total amortization of
acquired intangible
assets 1% 1%
=== ===
Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
April 30, January 31,
2018 2018
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $82,445 $43,247
Short-term marketable
securities 346,833 327,842
Accounts receivable, net 64,686 130,579
Prepaid expenses and other
current assets 24,249 31,470
------ ------
Total current assets 518,213 533,138
Property and equipment, net 21,891 17,600
Marketable securities,
noncurrent 39,357 71,580
Intangible assets, net 5,198 5,855
Goodwill 33,621 33,621
Restricted cash 18,023 18,052
Other assets 6,822 9,312
TOTAL ASSETS $643,125 $689,158
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $2,161 $2,722
Accrued compensation 30,236 41,393
Other accrued liabilities 13,780 13,454
Deferred revenue, current
portion 246,996 257,141
------- -------
Total current liabilities 293,173 314,710
Deferred revenue, less current
portion 32,134 34,870
Other liabilities 18,286 16,601
------ ------
TOTAL LIABILITIES 343,593 366,181
------- -------
STOCKHOLDERS' EQUITY:
Common stock 7 7
Additional paid-in capital 1,413,431 1,385,592
Accumulated other
comprehensive loss (1,075) (832)
Accumulated deficit (1,112,831) (1,061,790)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 299,532 322,977
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $643,125 $689,158
======== ========
Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended April 30,
----------------------------
2018 2017
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(51,041) $(222,319)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and
amortization 2,392 3,642
Stock-based compensation 25,366 191,082
Accretion and amortization
of marketable securities 15 542
Gain on disposal of fixed
assets (20) -
Changes in assets and liabilities:
Accounts receivable 66,013 48,527
Prepaid expenses and other
assets 8,167 1,379
Accounts payable (121) (1,921)
Accrued compensation (14,627) (12,667)
Accrued expenses and other
liabilities 1,054 1,142
Deferred revenue (12,835) (4,428)
Net cash provided by
operating activities 24,363 4,979
------ -----
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable
securities (114,243) (110,347)
Sales of marketable
securities 13,256 31,675
Maturities of marketable
securities 114,213 51,420
Capital expenditures (4,241) (175)
Proceeds from sale of
equipment 27 -
Net cash provided by (used
in) investing activities 9,012 (27,427)
----- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Shares withheld related to
net share settlement of
restricted stock units (906) -
Proceeds from employee stock
plans 7,081 1,482
Payment of offering costs - (1,647)
Net cash provided by (used
in) financing activities 6,175 (165)
----- ----
Effect of exchange rate
changes on cash, cash
equivalents and restricted
cash (381) 1
---- ---
Net increase (decrease) in
cash, cash equivalents and
restricted cash 39,169 (22,612)
Cash, cash equivalents and
restricted cash -Beginning
of period 61,299 89,632
Cash, cash equivalents and
restricted cash -End of
period $100,468 $67,020
======== =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for income taxes $1,161 $629
====== ====
SUPPLEMENTAL DISCLOSURES OF NON-CASH
INVESTING AND FINANCING ACTIVITIES
Purchases of property and
equipment in other accrued
liabilities $1,706 $71
====== ===
Offering costs in accounts
payable and other accrued
liabilities $ - $1,190
=== === ======
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 Amortization of Non-GAAP
compensation acquired
expense intangible assets
---
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 (4)% 15% - % 10%
Gross profit 69,356 5,022 622 75,000
Total gross margin 68% 5% 1% 73%
Research and
development 43,664 (9,861) - 33,803
Sales and marketing 59,777 (6,079) (35) 53,663
General and
administrative 16,336 (4,404) - 11,932
Loss from
operations (50,421) 25,366 657 (24,398)
Operating margin (49)% 25% 1% (24)%
Net Loss (51,041) 25,366 657 (25,018)
Net loss per share,
basic and diluted $(0.35) $0.17 $0.01 $(0.17)
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
GAAP weighted-average shares reconciled to non-GAAP weighted-average shares
(in thousands)
(unaudited)
Three Months Ended April 30,
----------------------------
2018 2017
---- ----
GAAP weighted-average
shares, basic and
diluted 146,678 38,487
Assumed preferred
stock conversion - 74,907
Assumed IPO issuance - 582
--- ---
Non-GAAP weighted-
average shares,
diluted 146,678 113,976
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 (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) Q2 FY
---------- --- ---
GAAP net
loss ($49) - (46) ($201) - (197)
Stock-
based
compensation
expense
(1) 25 104
Amortization
of
acquired
intangible
assets 1 3
Non-GAAP
net loss ($23) - (20) ($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.
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SOURCE Cloudera, Inc.
