Cloudera Reports Second Quarter Fiscal Year 2019 Financial Results
PALO ALTO, Calif., Sept. 5, 2018 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the modern platform for machine learning and analytics optimized for the cloud, today reported results for its second quarter fiscal 2019, ended July 31, 2018. Total revenue was $110.3 million, an increase of 23% as compared to the second quarter of fiscal 2018. Subscription revenue was $93.1 million, an increase of 26% as compared to the second quarter of fiscal 2018. Subscription revenue represented 84% of total revenue, up from 82% in the second quarter of fiscal 2018.
"In Q2 we made substantial progress in our product and go-to-market transitions, delivering strong financial results in the quarter and accomplishing many of our goals for sustained success in our market," said Tom Reilly, chief executive officer. "We continue to innovate in highly differentiating ways. With three new modern data warehouse offerings, we are well-positioned to disrupt the legacy data warehouse industry."
GAAP loss from operations for the second quarter of fiscal 2019 was $33.9 million, compared to a GAAP loss from operations of $65.7 million for the second quarter of fiscal 2018. Non-GAAP loss from operations for the second quarter of fiscal 2019 was $12.7 million, compared to a non-GAAP loss from operations of $25.3 million in the second quarter of fiscal 2018.
Operating cash flow for the second quarter of fiscal 2019 was negative $23.6 million compared to operating cash flow of negative $22.8 million in the second quarter of fiscal 2018.
GAAP net loss per share for the second quarter of fiscal 2019 was $0.22 per share, based on weighted-average shares outstanding of 149.5 million shares, compared to a GAAP net loss per share in the second quarter of fiscal 2018 of $0.48 per share, based on weighted-average shares outstanding of 134.5 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 second quarter of fiscal 2019 was $0.08 per share, based on non-GAAP weighted-average shares outstanding of 149.5 million shares, compared to non-GAAP net loss per share in the second quarter of fiscal 2018 of $0.17 per share, based on non-GAAP weighted-average shares outstanding of 136.5 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 July 31, 2018, the company had total cash, cash equivalents, marketable securities and restricted cash of $458.2 million.
Recent Business and Financial Highlights
-- Subscription revenue was up 26% year-over-year to $93.1 million
-- Subscription revenue represented 84% of total revenue, up from 82% in
the second quarter of fiscal 2018
-- Non-GAAP subscription gross margin for the quarter was 87%, up from 85%
in the second quarter of fiscal 2018
-- Customers with annual recurring revenue greater than $100,000 were 568,
up 30 for the quarter
-- Dollar-based net expansion rate was 128% for the quarter
-- Non-GAAP operating loss improved more than 16 percentage points in the
second quarter compared to the year-ago period
-- Introduced Cloudera Altus Data Warehouse, a modern data warehouse
as-a-service, available on Microsoft Azure and AWS
-- Introduced Cloudera Data Warehouse, a modern data warehouse for
self-service analytics, built with a hybrid cloud-native architecture
that handles 50PB data workloads and enables hybrid compute, storage,
and control for workload portability across public clouds and enterprise
data centers
-- Introduced Cloudera Workload XM, a new intelligent workload experience
management cloud service that provides end-to-end visibility across the
entire data warehouse, helping improve performance, reduce downtime and
optimize utilization across the complete lifecycle of analytics
workloads
Business Outlook
The outlook for the third quarter of fiscal 2019, ending October 31, 2018, is:
-- Total revenue in the range of $113 million to $114 million, representing
approximately 20% year-over-year growth
-- Subscription revenue in the range of $96 million to $97 million,
representing approximately 24% year-over-year growth
-- Non-GAAP net loss per share in the range of $0.12 to $0.10 per share
-- Weighted-average shares outstanding of approximately 152 million shares
The outlook for fiscal 2019, ending January 31, 2019, is:
-- Total revenue in the range of $440 million to $450 million, representing
approximately 21% year-over-year growth
-- Subscription revenue in the range of $372 million to $377 million,
representing approximately 24% year-over-year growth
-- Operating cash flow of approximately negative $35 million
-- Non-GAAP net loss per share in the range of $0.53 to $0.50 per share
-- Weighted-average shares outstanding of approximately 151 million shares
Conference Call and Webcast Information
Cloudera is hosting a conference call for analysts and investors to discuss its second quarter fiscal 2019 results and the outlook for its third 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: 8388004
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 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 "Business Outlook" for our third quarter of fiscal 2019 and our 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 Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC), 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.
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended July 31, Six Months Ended July 31,
--------------------------- -------------------------
2018 2017 2018 2017
---- ---- ---- ----
Revenue:
Subscription $93,123 $73,986 $179,022 $138,657
Services 17,215 15,842 34,023 30,767
------ ------ ------ ------
Total revenue 110,338 89,828 213,045 169,424
------- ------ ------- -------
Cost of revenue:(1) (2)
Subscription 14,961 15,215 30,768 41,687
Services 17,171 16,755 34,715 50,395
------ ------ ------ ------
Total cost of revenue 32,132 31,970 65,483 92,082
------ ------ ------ ------
Gross profit 78,206 57,858 147,562 77,342
------ ------ ------- ------
Operating expenses:(1) (2)
Research and development 39,800 42,844 83,464 138,675
Sales and marketing 55,166 62,135 114,943 172,578
General and
administrative 17,090 18,564 33,426 54,114
------ ------ ------ ------
Total operating expenses 112,056 123,543 231,833 365,367
------- ------- ------- -------
Loss from operations (33,850) (65,685) (84,271) (288,025)
Interest income, net 2,173 1,440 3,980 2,089
Other income (expense),
net (907) 817 (2,028) 839
---- --- ------ ---
Net loss before provision
for income taxes (32,584) (63,428) (82,319) (285,097)
Provision for income
taxes (791) (801) (2,097) (1,451)
---- ---- ------ ------
Net loss $(33,375) $(64,229) $(84,416) $(286,548)
======== ======== ======== =========
Net loss per share, basic
and diluted $(0.22) $(0.48) $(0.57) $(3.28)
====== ====== ====== ======
Weighted-average shares
used in computing net
loss per share, basic
and diluted 149,505 134,506 148,115 87,293
======= ======= ======= ======
(1) Amounts include stock-based compensation expense as follows (in thousands):
Three Months Ended July 31, Six Months Ended July 31,
--------------------------- -------------------------
2018 2017 2018 2017
---- ---- ---- ----
Cost of revenue -
subscription $2,496 $3,693 $5,044 $19,393
Cost of revenue - services 2,776 3,890 5,250 24,227
Research and development 8,336 13,128 18,197 81,029
Sales and marketing 2,698 12,137 8,777 72,678
General and administrative 4,169 6,603 8,573 33,206
----- ----- ----- ------
Total stock-based
compensation expense $20,475 $39,451 $45,841 $230,533
======= ======= ======= ========
(2) Amounts include amortization of acquired intangible assets as follows (in thousands):
Three Months Ended July 31, Six Months Ended July 31,
--------------------------- -------------------------
2018 2017 2018 2017
---- ---- ---- ----
Cost of revenue -
subscription $622 $510 $1,244 $1,024
Sales and marketing 35 431 70 861
--- --- --- ---
Total amortization of
acquired intangible
assets $657 $941 $1,314 $1,885
==== ==== ====== ======
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(as a percentage of total revenues)
(unaudited)
Three Months Ended July 31, Six Months Ended July 31,
--------------------------- -------------------------
2018 2017 2018 2017
---- ---- ---- ----
Revenue:
Subscription 84% 82% 84% 82%
Services 16 18 16 18
--- --- --- ---
Total revenue 100 100 100 100
Cost of revenue:(1) (2)
Subscription 13 17 15 24
Services 16 19 16 30
--- --- --- ---
Total cost of revenue 29 36 31 54
Gross profit 71 64 69 46
--- --- --- ---
Operating expenses:(1) (2)
Research and development 37 48 39 82
Sales and marketing 50 69 54 102
General and
administrative 15 20 16 32
--- --- --- ---
Total operating expenses 102 137 109 216
--- --- --- ---
Loss from operations (31) (73) (40) (170)
Interest income, net 2 1 2 1
Other income (expense),
net (1) 1 (1) 1
--- --- --- ---
Net loss before provision
for income taxes (30) (71) (39) (168)
Provision for income
taxes (1) (1) (1) (1)
--- --- --- ---
Net loss (31)% (72)% (40)% (169)%
==== ==== ==== =====
(1) Amounts include stock-based compensation expense as a percentage of total revenue as follows:
Three Months Ended July 31, Six Months Ended July 31,
--------------------------- -------------------------
2018 2017 2018 2017
---- ---- ---- ----
Cost of revenue -
subscription 2% 4% 2% 11%
Cost of revenue -
services 3 4 3 14
Research and development 8 15 9 48
Sales and marketing 2 14 4 43
General and
administrative 4 7 4 20
Total stock-based
compensation expense 19% 44% 22% 136%
=== === === ===
(2) Amounts include amortization of acquired intangible assets as a percentage of total revenue as follows:
Three Months Ended July 31, Six Months Ended July 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%
=== === === ===
Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
July 31, January 31,
2018 2018
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $52,970 $43,247
Short-term marketable
securities 325,413 327,842
Accounts receivable, net 96,364 130,579
Prepaid expenses and other
current assets 20,534 31,470
------ ------
Total current assets 495,281 533,138
Property and equipment, net 22,089 17,600
Marketable securities,
noncurrent 61,747 71,580
Intangible assets, net 4,540 5,855
Goodwill 33,621 33,621
Restricted cash 18,024 18,052
Other assets 7,696 9,312
TOTAL ASSETS $642,998 $689,158
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $2,543 $2,722
Accrued compensation 31,286 41,393
Other accrued liabilities 13,871 13,454
Deferred revenue, current
portion 253,779 257,141
------- -------
Total current liabilities 301,479 314,710
Deferred revenue, less current
portion 30,500 34,870
Other liabilities 19,745 16,601
------ ------
TOTAL LIABILITIES 351,724 366,181
------- -------
STOCKHOLDERS' EQUITY:
Common stock 8 7
Additional paid-in capital 1,438,493 1,385,592
Accumulated other comprehensive
loss (1,021) (832)
Accumulated deficit (1,146,206) (1,061,790)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 291,274 322,977
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $642,998 $689,158
======== ========
Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended July 31, Six Months Ended July 31,
--------------------------- -------------------------
2018 2017 2018 2017
---- ---- ---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(33,375) $(64,229) $(84,416) $(286,548)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 2,676 3,352 5,068 6,994
Stock-based compensation 20,475 39,451 45,841 230,533
Accretion and amortization of
marketable securities (210) (128) (195) 414
Gain on disposal of fixed
assets - - (20) -
Changes in assets and liabilities:
Accounts receivable (31,647) (31,783) 34,366 16,744
Prepaid expenses and other
assets 4,130 (740) 12,297 639
Accounts payable 704 3,595 583 1,674
Accrued compensation 5,190 7,684 (9,437) (4,983)
Accrued expenses and other
liabilities 2,945 1,828 3,999 2,970
Deferred revenue 5,559 18,125 (7,276) 13,697
Net cash provided by (used
in) operating activities (23,553) (22,845) 810 (17,866)
------- ------- --- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable
securities and other
investments (138,133) (276,807) (252,376) (387,154)
Sales of marketable
securities and other
investments 19,038 11,523 32,294 43,198
Maturities of marketable
securities and other
investments 116,690 66,184 230,903 117,604
Capital expenditures (3,449) (1,796) (7,690) (1,971)
Proceeds from sale of
equipment - - 27 -
Net cash provided by (used
in) investing activities (5,854) (200,896) 3,158 (228,323)
------ -------- ----- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issuance of
common stock in initial
public offering - 239,333 - 237,686
Proceeds from employee stock
plans 4,249 4,450 11,330 5,932
Shares withheld related to
net share settlement of
restricted stock units (3,482) - (4,388) -
Net cash provided by
financing activities 767 243,783 6,942 243,618
Effect of exchange rate
changes on cash, cash
equivalents and restricted
cash (834) (78) (1,215) (77)
---- --- ------ ---
Net increase (decrease) in
cash, cash equivalents and
restricted cash (29,474) 19,964 9,695 (2,648)
Cash, cash equivalents and
restricted cash -Beginning
of period 100,468 67,020 61,299 89,632
Cash, cash equivalents and
restricted cash -End of
period $70,994 $86,984 $70,994 $86,984
======= ======= ======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for income taxes $737 $723 $1,898 $1,352
==== ==== ====== ======
SUPPLEMENTAL DISCLOSURES OF NON-CASH
INVESTING AND FINANCING ACTIVITIES
Purchases of property and
equipment in other accrued
liabilities $561 $3,054 $561 $3,054
==== ====== ==== ======
Offering costs in accounts
payable and other accrued
liabilities $ - $264 $ - $264
=== === ==== === === ====
Conversion of redeemable
convertible preferred stock
to common stock $ - $657,687 $ - $657,687
=== === ======== === === ========
Cloudera, Inc.
Three Months Ended July 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 $14,961 $(2,496) $(622) $11,843
Subscription gross
margin 84% 3% 1% 87%
Cost of revenue-
Services 17,171 (2,776) - 14,395
Services gross
margin - % 16% - % 16%
Gross profit 78,206 5,272 622 84,100
Total gross margin 71% 5% 1% 76%
Research and
development 39,800 (8,336) - 31,464
Sales and marketing 55,166 (2,698) (35) 52,433
General and
administrative 17,090 (4,169) - 12,921
Loss from operations (33,850) 20,475 657 (12,718)
Operating margin (31)% 19% 1% (12)%
Net loss (33,375) 20,475 657 (12,243)
Net loss per share,
basic and diluted $(0.22) $0.14 $ - $(0.08)
Cloudera, Inc.
Three Months Ended July 31, 2017
GAAP Results Reconciled to non-GAAP Results
(in thousands, except per share amounts)
(unaudited)
GAAP Stock-based
compensation
expense Amortization Non-GAAP Non-GAAP
of acquired weighted-
intangible average shares
assets outstanding
---
Cost of revenue-
Subscription $15,215 $(3,693) $(510) $ - $11,012
Subscription gross
margin 79% 5% 1% - % 85%
Cost of revenue-
Services 16,755 (3,890) - - 12,865
Services gross
margin (6)% 25% - % - % 19%
Gross profit 57,858 7,583 510 - 65,951
Total gross margin 64% 8% 1% - % 73%
Research and
development 42,844 (13,128) - - 29,716
Sales and marketing 62,135 (12,137) (431) - 49,567
General and
administrative 18,564 (6,603) - - 11,961
Loss from operations (65,685) 39,451 941 - (25,293)
Operating margin (73)% 44% 1% - % (28)%
Net loss (64,229) 39,451 941 - (23,837)
Net loss per share,
basic and diluted
(1) $(0.48) $0.29 $0.01 $0.01 $(0.17)
(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 July 31, Six Months Ended July 31,
--------------------------- -------------------------
2018 2017 2018 2017
---- ---- ---- ----
GAAP weighted-
average shares,
basic and diluted 149,505 134,506 148,115 87,293
Assumed preferred
stock conversion - 1,628 - 37,661
Assumed IPO
issuance - 375 - 477
--- --- --- ---
Non-GAAP
weighted-average
shares, diluted 149,505 136,509 148,115 125,431
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) Q3 FY
---------- --- ---
GAAP net
loss ($42) - (39) ($178) - (174)
Stock-
based
compensation
expense
(1) 23 95
Amortization
of
acquired
intangible
assets 1 3
Non-GAAP
net loss ($18) - (15) ($80) - (76)
(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.
