Cloudera Reports Third Quarter Fiscal Year 2019 Financial Results
PALO ALTO, Calif., Dec. 5, 2018 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the modern platform for machine learning and analytics optimized for the cloud, today reported results for its third quarter of fiscal 2019, ended October 31, 2018. Total revenue was $118.2 million, an increase of 25% as compared to the third quarter of fiscal 2018. Subscription revenue was $99.7 million, an increase of 28% as compared to the third quarter of fiscal 2018.
"We are pleased with our execution in Q3 and our progress on the strategic combination we have announced with Hortonworks. Pre-closing merger integration planning is going well. And more importantly, we are very encouraged by the reception that our plans are receiving from customers, partners and the developer community," said Tom Reilly, chief executive officer. "Together, we will enhance our competitiveness, accelerate our momentum in cloud innovation, and provide a comprehensive solution-set for customers, from the Edge to AI."
GAAP loss from operations for the third quarter of fiscal 2019 was $26.4 million, compared to a GAAP loss from operations of $56.6 million for the third quarter of fiscal 2018. Non-GAAP loss from operations for the third quarter of fiscal 2019 was $3.8 million, compared to a non-GAAP loss from operations of $24.4 million in the third quarter of fiscal 2018.
Operating cash flow for the third quarter of fiscal 2019, which includes $6.0 million of merger-related costs, was negative $6.8 million compared to operating cash flow of negative $2.4 million in the third quarter of fiscal 2018.
GAAP net loss per share for the third quarter of fiscal 2019 was $0.17 per share, based on weighted-average shares outstanding of 152.2 million shares, compared to a GAAP net loss per share in the third quarter of fiscal 2018 of $0.40 per share, based on weighted-average shares outstanding of 138.5 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 third quarter of fiscal 2019 was $0.03 per share, based on weighted-average shares outstanding of 152.2 million shares, compared to non-GAAP net loss per share in the third quarter of fiscal 2018 of $0.17 per share, based on weighted-average shares outstanding of 138.5 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 October 31, 2018, the company had total cash, cash equivalents, marketable securities and restricted cash of $453.3 million.
Recent Business and Financial Highlights
-- Subscription revenue was up 28% year-over-year to $99.7 million
-- Non-GAAP subscription gross margin for the quarter was 89%, up from 86%
in the third quarter of fiscal 2018
-- Customers with annual recurring revenue greater than $100,000 were 601,
up 33 for the quarter compared to the second quarter quarter of fiscal
2019
-- Dollar-based net expansion rate was 127% for the quarter
-- Non-GAAP operating loss improved more than 22 percentage points in the
third quarter compared to the third quarter of fiscal 2018
-- Previewed Cloudera Machine Learning, a new, cloud-native machine
learning platform powered by Kubernetes to accelerate the
industrialization of AI
-- Announced availability of Cloudera's most powerful and comprehensive
platform to date - Cloudera Enterprise 6.0
Business Outlook
Note that guidance is provided for Cloudera on a standalone basis. An updated outlook for the combined company will be provided after closing of the merger and completion of Cloudera's fiscal 2019 fourth quarter. Accordingly, the outlook for the fourth quarter of fiscal 2019, ending January 31, 2019, is:
-- Total revenue in the range of $119 million to $122 million, representing
17% year-over-year growth
-- Subscription revenue in the range of $101 million to $103 million,
representing 21% 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 155 million shares
The outlook for fiscal 2019, ending January 31, 2019, is:
-- Total revenue in the range of $450 million to $453 million, representing
approximately 23% year-over-year growth
-- Subscription revenue in the range of $380 million to $382 million,
representing approximately 27% year-over-year growth
-- Operating cash flow in the range of negative $25 million to $20 million
-- Non-GAAP net loss per share in the range of $0.40 to $0.38 per share
-- Weighted-average shares outstanding of approximately 151 million shares
Note that operating cash flow projections for fiscal 2019 include approximately $12 million of merger execution and planning expenses in fiscal third and fourth quarters. There are or may be additional costs incurred as early as January 2019, upon closing of the merger, which have not been considered in forecasting operating cash flow for fiscal 2019.
Conference Call and Webcast Information
Cloudera is hosting a conference call for analysts and investors to discuss its third quarter fiscal 2019 results and the outlook for its fourth 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: 8079743
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 and LinkedIn: linkedin.com/cloudera/
Visit us on Facebook: facebook.com/cloudera
See us on YouTube: youtube.com/user/clouderahadoop
Join the Cloudera Community: community.cloudera.com
Read about our customers' successes: cloudera.com/customers.html
Cloudera and associated marks are trademarks or registered trademarks of Cloudera, Inc. All other company and product names may be trademarks of their respective owners.
Forward-Looking Statements
Statements in this press release that are not historical in nature are forward-looking statements that, within the meaning of the federal securities laws including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, involve known and unknown risks and uncertainties. Words such as "may", "will", "expect", "intend", "plan", "believe", "seek", "could", "estimate", "judgment", "targeting", "should", "anticipate", "goal" and variations of these words and similar expressions, are also intended to identify forward-looking statements. The forward-looking statements in this press release address a variety of subjects, including anticipated benefits from the merger with Hortonworks and our "Business Outlook" for our fourth 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, including in a registration statement on Form S-4 containing a joint proxy statement/prospectus of Cloudera and Hortonworks. 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 operating margin, 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), and amortization of acquired intangible assets from the Cloudera unaudited condensed consolidated statement of operations. In addition, we use non-GAAP weighted-average shares outstanding to calculate non-GAAP net loss per share. This non-GAAP measure includes the impact of anti-dilutive restricted stock units and stock options outstanding, on a weighted basis.
For a description of these items, including the reasons why management adjusts for them, and reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled "Use of Non-GAAP Financial Information" as well as the related tables that precede it. We may consider whether other significant non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures we use.
We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our core business, operating results or future outlook. Management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results, as well as when planning, forecasting and analyzing future periods. We use these non?GAAP financial measures in conjunction with traditional GAAP measures to communicate with our board of directors concerning our financial performance. These non-GAAP financial measures also facilitate comparisons of our performance to prior periods.
No Offer or Solicitation
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed merger or otherwise. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Additional Information and Where to Find It
In connection with the proposed merger between Cloudera and Hortonworks, Cloudera has filed a registration statement on Form S-4 with the Securities and Exchange Commission (SEC) (Registration Statement No. 333-228155), and this registration statement, as amended, was declared effective by the SEC on November 20, 2018. This registration statement contains a joint proxy statement/prospectus and relevant materials concerning the proposed merger. Additionally, Cloudera and Hortonworks intend to file with the SEC other materials in connection with the proposed merger. BEFORE MAKING ANY VOTING DECISION, CLOUDERA'S AND HORTONWORKS' RESPECTIVE STOCKHOLDERS ARE URGED TO READ THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS IN ITS ENTIRETY AND ANY OTHER DOCUMENTS FILED BY EACH OF CLOUDERA AND HORTONWORKS WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE THEREIN BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain a free copy of the definitive joint proxy statement/prospectus and other documents containing important information about Cloudera and Hortonworks, once such documents are filed with the SEC, through the website maintained by the SEC at www.sec.gov. Cloudera and Hortonworks make available free of charge at www.cloudera.com and www.hortonworks.com, respectively (in the "Investor Relations" section), copies of materials they file with, or furnish to, the SEC. The contents of the websites referenced above are not deemed to be incorporated by reference into the registration statement or the definitive joint proxy statement/prospectus.
Participants in the Solicitation
This press release does not constitute a solicitation of proxy, an offer to purchase or a solicitation of an offer to sell any securities. Cloudera, Hortonworks and their respective directors, executive officers and certain employees may be deemed to be participants in the solicitation of proxies from the stockholders of Cloudera and Hortonworks in connection with the proposed merger. Information regarding the special interests of these directors and executive officers in the proposed merger is included in the definitive joint proxy statement/prospectus. Security holders may also obtain information regarding the names, affiliations and interests of Cloudera's directors and executive officers in Cloudera's Annual Report on Form 10-K for the fiscal year ended January 31, 2018, which was filed with the SEC on April 4, 2018, and its definitive proxy statement for the 2018 annual meeting of stockholders, which was filed with the SEC on May 16, 2018. Security holders may obtain information regarding the names, affiliations and interests of Hortonworks' directors and executive officers in Hortonworks' Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed with the SEC on March 15, 2018, and its definitive proxy statement for the 2018 annual meeting of stockholders, which was filed with the SEC on April 24, 2018. To the extent the holdings of Cloudera securities by Cloudera's directors and executive officers or the holdings of Hortonworks securities by Hortonworks' directors and executive officers have changed since the amounts set forth in Cloudera's or Hortonworks' respective proxy statement for its 2018 annual meeting of stockholders, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Additional information regarding the interests of such individuals in the proposed merger are included in the definitive joint proxy statement/prospectus relating to the proposed merger. These documents (when available) may be obtained free of charge from the SEC's website at www.sec.gov, Cloudera's website at www.cloudera.com and Hortonworks' website at www.hortonworks.com. The contents of the websites referenced above are not deemed to be incorporated by reference into the registration statement or the joint proxy statement/prospectus.
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
---
2018 2017 2018 2017
---
Revenue:
Subscription $
99,698 $
78,105 $
278,720 $
216,762
Services 18,485 16,464 52,508 47,231
Total revenue 118,183 94,569 331,228 263,993
Cost of revenue:(1) (2)
Subscription 13,996 14,486 44,764 56,173
Services 15,980 18,640 50,695 69,035
Total cost of revenue 29,976 33,126 95,459 125,208
Gross profit 88,207 61,443 235,769 138,785
Operating expenses:(1) (2)
Research and development 37,563 38,095 121,027 176,770
Sales and marketing 54,927 64,061 169,870 236,639
General and
administrative 22,067 15,877 55,493 69,991
Total operating expenses 114,557 118,033 346,390 483,400
Loss from operations (26,350) (56,590) (110,621) (344,615)
Interest income, net 2,440 1,501 6,420 3,590
Other income (expense),
net (1,126) (490) (3,154) 349
Net loss before benefit
from (provision for)
income taxes (25,036) (55,579) (107,355) (340,676)
Benefit from (provision
for) income taxes (1,498) 241 (3,595) (1,210)
Net loss $
(26,534) $
(55,338) $
(110,950) $
(341,886)
Net loss per share,
basic and diluted $
(0.17) $
(0.40) $
(0.74) $
(3.27)
Weighted-average shares
used in computing net
loss per share, basic
and diluted 152,245 138,506 149,507 104,551
(1)
Amounts include stock-based compensation expense as follows (in thousands):
Three Months Ended October 31, Nine Months Ended October 31,
---
2018 2017 2018 2017
---
Cost of revenue -
subscription $
2,016 $
2,750 $
7,060 $
22,143
Cost of revenue -
services 2,290 4,187 7,540 28,414
Research and development 7,805 9,110 26,002 90,139
Sales and marketing 5,504 10,070 14,281 82,748
General and
administrative 4,275 5,030 12,848 38,236
Total stock?based
compensation expense $
21,890 $
31,147 $
67,731 $
261,680
(2) A
mounts include amortization of acquired intangible assets as follows (in thousands):
Three Months Ended October 31, Nine Months Ended October 31,
---
2018 2017 2018 2017
---
Cost of revenue -
subscription $
622 $
584 $
1,866 $
1,608
Sales and marketing 35 454 105 1,315
Total amortization of
acquired intangible
assets $
657 $
1,038 $
1,971 $
2,923
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(as a percentage of total revenues)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
---
2018 2017 2018 2017
---
Revenue:
Subscription 84 83 84 82
% % % %
Services 16 17 16 18
Total revenue 100 100 100 100
Cost of revenue:(1) (2)
Subscription 12 15 14 21
Services 13 20 15 26
Total cost of revenue 25 35 29 47
Gross profit 75 65 71 53
Operating expenses:(1) (2)
Research and development 32 40 36 67
Sales and marketing 46 68 51 90
General and
administrative 19 17 17 26
Total operating expenses 97 125 104 183
Loss from operations (22) (60) (33) (130)
Interest income, net 2 2 2 1
Other income (expense),
net (1) (1) (1)
Net loss before benefit
from (provision for)
income taxes (21) (59) (32) (129)
Benefit from (provision
for) income taxes (1) (1) (1)
Net loss (22) (59) (33) (130)
% % % %
===
(1)
Amounts include stock-based compensation expense as a percentage of total revenue as follows:
Three Months Ended October 31, Nine Months Ended October 31,
---
2018 2017 2018 2017
---
Cost of revenue - 2 3 2 8
subscription % % % %
Cost of revenue -
services 2 4 2 11
Research and development 7 10 8 34
Sales and marketing 5 11 4 31
General and
administrative 4 5 4 15
Total stock-based 20 33 20 99
compensation expense % % % %
===
(2)
Amounts include amortization of acquired intangible assets as a percentage of total revenue as follows:
Three Months Ended October 31, Nine Months Ended October 31,
---
2018 2017 2018 2017
---
Cost of revenue - 1 1 1 1
subscription % % % %
Sales and marketing -
Total amortization of
acquired intangible % % % %
assets 1 1 1 1
===
Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
October 31, January 31,
2018 2018
---
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $
64,632 $
43,247
Short-term marketable
securities 325,053 327,842
Accounts receivable, net 92,586 130,579
Prepaid expenses and other
current assets 25,176 31,470
Total current assets 507,447 533,138
Property and equipment, net 21,207 17,600
Marketable securities,
noncurrent 60,237 71,580
Intangible assets, net 3,884 5,855
Goodwill 33,621 33,621
Restricted cash 3,352 18,052
Other assets 6,767 9,312
TOTAL ASSETS $
636,515 $
689,158
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $
2,085 $
2,722
Accrued compensation 36,834 41,393
Other accrued liabilities 13,376 13,454
Deferred revenue, current
portion 242,665 257,141
Total current liabilities 294,960 314,710
Deferred revenue, less current
portion 34,654 34,870
Other liabilities 20,336 16,601
TOTAL LIABILITIES 349,950 366,181
STOCKHOLDERS' EQUITY:
Common stock 8 7
Additional paid-in capital 1,460,370 1,385,592
Accumulated other
comprehensive loss (1,073) (832)
Accumulated deficit (1,172,740) (1,061,790)
TOTAL STOCKHOLDERS' EQUITY 286,565 322,977
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $
636,515 $
689,158
Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
---
2018 2017 2018 2017
---
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $
(26,534) $
(55,338) $
(110,950) $
(341,886)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and
amortization 2,691 2,701 7,759 9,695
Stock-based compensation 21,890 31,147 67,731 261,680
Release of deferred tax
valuation allowance - (806) (806)
Accretion and amortization
of marketable securities (466) 243 (661) 657
Gain on disposal of fixed
assets (2) (111) (22) (111)
Changes in assets and liabilities:
Accounts receivable 3,944 18,792 38,310 35,536
Prepaid expenses and other
assets (3,949) (6,098) 8,348 (5,459)
Accounts payable (22) (4,000) 561 (2,326)
Accrued compensation 2,403 3,752 (7,034) (1,231)
Accrued expenses and other
liabilities 103 6,472 4,102 9,442
Deferred revenue (6,842) 830 (14,118) 14,527
Net cash used in operating
activities (6,784) (2,416) (5,974) (20,282)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable
securities and other
investments (116,538) (127,003) (368,914) (514,157)
Sales of marketable
securities and other
investments 3,715 14,238 36,009 57,436
Maturities of marketable
securities and other
investments 115,300 116,128 346,203 233,732
Cash used in business
combinations, net of cash
acquired - (1,937) (1,937)
Capital expenditures (1,630) (7,034) (9,320) (9,005)
Proceeds from sale of
equipment 2 145 29 145
Net cash provided by (used
in) investing activities 849 (5,463) 4,007 (233,786)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issuance
of common stock in initial
public offering - (264) 237,422
Net proceeds from issuance
of common stock in follow-
on offering - 46,803 46,803
Proceeds from employee stock
plans 7,430 5,289 18,760 11,221
Taxes paid related to net
share settlement of
restricted stock units (4,094) (50,503) (8,482) (50,503)
Net cash provided by
financing activities 3,336 1,325 10,278 244,943
Effect of exchange rate
changes on cash, cash
equivalents and restricted
cash (411) 417 (1,626) 340
Net increase (decrease) in
cash, cash equivalents and
restricted cash (3,010) (6,137) 6,685 (8,785)
Cash, cash equivalents and
restricted cash -Beginning
of period 70,994 86,984 61,299 89,632
Cash, cash equivalents and
restricted cash -End of
period $
67,984 $
80,847 $
67,984 $
80,847
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid for income taxes $
1,171 $
488 $
3,069 $
1,840
SUPPLEMENTAL DISCLOSURES OF NON-CASH
INVESTING AND FINANCING ACTIVITIES
Purchases of property and
equipment in other accrued
liabilities $
202 $
261 $
202 $
261
Fair value of common stock
issued as consideration for
business combinations
$ $
2,081
$ $
2,081
Offering costs in accounts
payable and other accrued
liabilities
$ $
858
$ $
858
Conversion of redeemable
convertible preferred stock
to common stock
$
$
$ $
657,687
Cloudera, Inc.
Three Months Ended October 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 $
13,996 $
(2,016) $
(622) $
11,358
Subscription gross 86 2 1 89
margin
%
%
%
%
Cost of revenue-
Services 15,980 (2,290) 13,690
Services gross 14 12 % 26
margin
%
%
%
Gross profit 88,207 4,306 622 93,135
Total gross margin 75 4 1 79
%
%
%
%
Research and
development 37,563 (7,805) 29,758
Sales and marketing 54,927 (5,504) (35) 49,388
General and
administrative 22,067 (4,275) 17,792
Loss from
operations (26,350) 21,890 657 (3,803)
Operating margin (22) 20 1 (3)
%
%
%
%
Net loss (26,534) 21,890 657 (3,987)
Net loss per share,
basic and diluted $
(0.17) $
0.14
$ $
(0.03)
Cloudera, Inc.
Three Months Ended October 31, 2017
GAAP Results Reconciled to non-GAAP Results
(in thousands, except per share amounts)
(unaudited)
GAAP Stock-based Amortization Non-GAAP
compensation of acquired
expense intangible
assets
---
Cost of revenue-
Subscription $
14,486 $
(2,750) $
(584) $
11,152
Subscription gross 81 4 1 86
margin
%
%
%
%
Cost of revenue-
Services 18,640 (4,187) 14,453
Services gross (13) 25 % 12
margin
%
%
%
Gross profit 61,443 6,937 584 68,964
Total gross margin 65 7 1 73
%
%
%
%
Research and
development 38,095 (9,110) 28,985
Sales and marketing 64,061 (10,070) (454) 53,537
General and
administrative 15,877 (5,030) 10,847
Loss from
operations (56,590) 31,147 1,038 (24,405)
Operating margin (60) 33 1 (26)
%
%
%
%
Net loss (55,338) 31,147 1,038 (23,153)
Net loss per share,
basic and diluted $
(0.40) $
0.22 $
0.01 $
(0.17)
GAAP weighted-average shares reconciled to non-GAAP weighted-average shares
(in thousands)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
---
2018 2017 2018 2017
---
GAAP weighted-
average shares,
basic and diluted 152,245 138,506 149,507 104,551
Assumed preferred
stock conversion 24,969
Assumed IPO
issuance 316
Non-GAAP
weighted-average
shares, diluted 152,245 138,506 149,507 129,836
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) Q4 FY
---
GAAP net loss ($45) -($42) ($155) -($152)
Stock-based compensation
expense (1) 25 92
Amortization of acquired
intangible assets 1 3
Non-GAAP net loss ($19) -($16) ($60) -($57)
(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.
