Cloudera Reports First Quarter Fiscal Year 2020 Financial Results
PALO ALTO, Calif., June 5, 2019 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its first quarter of fiscal year 2020 ended April 30, 2019. Total revenue for the first quarter was $187.5 million, and subscription revenue was $154.8 million. Annualized recurring revenue grew 21% year-over-year.
"We continue to make substantial progress toward our goal of delivering the industry's first enterprise data cloud, designed for powerful analytics across hybrid and multi-cloud environments with common security and governance," said Tom Reilly, chief executive officer, Cloudera. "Our enterprise customers are excited about extending their analytic workloads to the public cloud through Cloudera Data Platform, which will be available this summer. While some customers in the first quarter elected to postpone renewal and expansion of their agreements in anticipation of the new platform's release, affecting our full year outlook, this customer feedback and enthusiasm validates demand for enterprise data cloud solutions in our target market. Customers are benefiting from our offerings today, solving complex data management and analytic use cases spanning the Edge to AI, and we look forward to helping them accelerate their journey to the cloud with Cloudera Data Platform."
All numbers reported for prior periods are presented for Cloudera on a standalone basis since the merger with Hortonworks, Inc. closed on January 3, 2019, and, as such, there is no comparative year-over-year financial information for the combined company.
GAAP loss from operations for the first quarter of fiscal 2020 was $103.8 million, compared to a GAAP loss from operations of $51.7 million for the first quarter of fiscal 2019.
Non-GAAP loss from operations for the first quarter of fiscal 2020 was $34.7 million, compared to a non-GAAP loss from operations of $25.7 million for the first quarter of fiscal 2019.
Operating cash flow for the first quarter of fiscal 2020, which includes $25.0 million of merger-related payments, was $11.5 million, compared to operating cash flow of $24.4 million for the first quarter of fiscal 2019.
GAAP net loss per share for the first quarter of fiscal 2020 was $0.38 per share, based on weighted-average shares outstanding of 271.4 million shares, compared to a GAAP net loss per share of $0.36 per share for the first quarter of fiscal 2019, based on weighted-average shares outstanding of 146.7 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 2020 was $0.13 per share, based on weighted-average shares outstanding of 271.4 million shares, compared to a non-GAAP net loss per share of $0.18 per share for the first quarter of fiscal 2019, based on weighted-average shares outstanding of 146.7 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, 2019, the company had total cash, cash equivalents, marketable securities and restricted cash of $547.5 million.
Recent Business and Financial Highlights
Today, we separately announced the planned retirement of Chief Executive Officer, Tom Reilly, and the appointment of Martin Cole, Chairman of the Board, as interim Chief Executive Officer.
First Quarter Fiscal 2020:
-- Annualized recurring revenue was $672.0 million, representing 21%
year-over-year growth
-- Non-GAAP subscription gross margin for the quarter was 85%
-- Operating cash flow was $11.5 million, including $25.0 million of
merger-related payments
-- Customers with annualized recurring revenue greater than $100,000 were
929
-- Expanded partnership with IBM to include all Cloudera product offerings
and to add services
-- Brought to market two new products: Cloudera Edge Management, an edge
management solution for IoT and streaming data, and Cloudera Flow
Management, a no-code, high-scale data ingestion, and management
solution
Business Outlook
The outlook for the second quarter of fiscal 2020, ending July 31, 2019, is:
-- Total revenue in the range of $180 million to $183 million
-- Subscription revenue in the range of $155 million to $157 million
-- Non-GAAP net loss per share in the range of $0.11 to $0.08 per share
-- Weighted-average shares outstanding of approximately 274 million shares
The outlook for fiscal 2020, ending January 31, 2020, is:
-- Annualized recurring revenue growth of 0% to 10%
-- Total revenue in the range of $745 million to $765 million
-- Subscription revenue in the range of $635 million to $645 million
-- Operating cash flow in the range of negative $95 million to negative $75
million, including $59 million of non-recurring merger-related payments
-- Non-GAAP net loss per share in the range of $0.32 to $0.28 per share
-- Weighted-average shares outstanding of approximately 280 million shares
Conference Call and Webcast Information
Cloudera is hosting a conference call for analysts and investors to discuss its first quarter of fiscal 2020 results and the outlook for its second quarter of fiscal 2020 and full year fiscal 2020 at 2:00 PM 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: 2193887
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. Cloudera delivers an enterprise data cloud for any data, anywhere, from the Edge to AI. Powered by the relentless innovation of the open source community, Cloudera advances digital transformation for the world's largest enterprises. 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 statements about our short-term and long-term goals and targets, including the timing of the release of the Cloudera Data Platform, expectations regarding the acceptance by our enterprise customers of enterprise data cloud and the Cloudera Data Platform, and our "Business Outlook" for our second quarter of fiscal 2020 and our full year fiscal 2020 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. You can obtain copies of the company's SEC filings on the SEC's website at www.sec.gov. 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 and audited 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 gross margins, non-GAAP subscription gross margins, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss, historical and forward-looking non-GAAP net loss per share, and adjusted annualized recurring revenue. 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.
Annualized Recurring Revenue
Annualized recurring revenue ("ARR") is a non-GAAP performance metric, which we will use to assess the health and trajectory of our business. ARR equals the annualized value of all recurring subscription contracts with active entitlements as of the end of the period, including pre-merger Hortonworks contracts. ARR excludes non-recurring partner revenue, subscription revenue with certain related parties, custom engineering and premium add-on support.
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended April 30,
2019 2018
(As Adjusted)*
---
Revenue:
Subscription $
154,838 $
86,763
Services 32,630 16,696
Total revenue 187,468 103,459
Cost of revenue:(1) (2)
Subscription 29,337 15,807
Services 31,896 17,544
Total cost of revenue 61,233 33,351
Gross profit 126,235 70,108
Operating expenses:(1) (2)
Research and development 64,173 43,664
Sales and marketing 119,383 61,810
General and
administrative 46,432 16,336
Total operating expenses 229,988 121,810
Loss from operations (103,753) (51,702)
Interest income, net 3,291 1,807
Other income (expense),
net 233 (1,121)
Net loss before provision
for income taxes (100,229) (51,016)
Provision for income
taxes (2,901) (1,306)
Net loss $
(103,130) $
(52,322)
Net loss per share, basic
and diluted $
(0.38) $
(0.36)
Weighted-average shares
used in computing net
loss per share, basic
and diluted 271,352 146,678
* As adjusted to reflect the
impact of the full
retrospective adoption of Topic
606.
(1) Amounts include stock-based
compensation expense as follows
(in thousands):
Three Months Ended April 30,
2019 2018
Cost of revenue -
subscription $
3,819 $
2,548
Cost of revenue -
services 4,260 2,474
Research and
development 17,841 9,861
Sales and marketing 13,364 6,079
General and
administrative 9,587 4,404
Total stock-based
compensation expense $
48,871 $
25,366
Amounts
include
amortization
of acquired
intangible
assets as
follows (in
(2) thousands):
Three Months Ended April 30,
2019 2018
Cost of revenue -
subscription $
2,910 $
622
Sales and marketing 17,250 35
Total amortization
of acquired
intangible assets $
20,160 $
657
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(as a percentage of total revenue)
(unaudited)
Three Months Ended April 30,
2019 2018
(As
Adjusted)*
---
Revenue:
Subscription 83 84
% %
Services 17 16
Total revenue 100 100
Cost of revenue:(1) (2)
Subscription 16 15
Services 17 17
Total cost of revenue 33 32
Gross profit 67 68
Operating expenses:(1) (2)
Research and development 34 42
Sales and marketing 64 60
General and
administrative 25 16
Total operating expenses 123 118
Loss from operations (56) (50)
Interest income, net 2 2
Other income (expense),
net - (1)
Net loss before provision
for income taxes (54) (49)
Provision for income
taxes (1) (1)
Net loss (55) (50)
% %
===
* As adjusted to reflect the
impact of the full
retrospective adoption of Topic
606.
(1) Amounts include stock?based
compensation expense as a
percentage of total revenue as
follows:
Three Months Ended April 30,
2019 2018
Cost of revenue - subscription 2 3
% %
Cost of revenue - services 2 2
Research and development 10 10
Sales and marketing 7 6
General and administrative 5 4
Total stock-based compensation 26 25
expense % %
(2) Amounts include amortization of
acquired intangible assets as
a percentage of total revenue
as follows:
Three Months Ended April 30,
2019 2018
Cost of revenue - subscription 2 1
% %
Sales and marketing 9
Total amortization of acquired 11 1
intangible assets % %
Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
April 30, January 31,
2019 2019
---
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $
107,362 $
158,672
Marketable securities, current 337,283 322,005
Accounts receivable, net 146,009 242,980
Contract assets 5,355 4,824
Deferred costs 36,877 32,100
Prepaid expenses and other
current assets 27,121 38,281
Total current assets 660,007 798,862
Property and equipment, net 26,546 27,619
Marketable securities, non-
current 99,474 56,541
Intangible assets, net 659,166 679,326
Goodwill 587,336 586,456
Deferred costs, non-current 31,896 36,913
Restricted cash 3,352 3,367
Operating lease right-of-use
assets 231,983
Other assets 10,474 7,559
TOTAL ASSETS $
2,310,234 $
2,196,643
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $
5,322 $
8,185
Accrued compensation 44,648 53,590
Other contract liabilities,
current 12,055 17,177
Other accrued liabilities 22,267 24,548
Operating lease liabilities,
current 25,650
Deferred revenue, current 375,691 390,965
Total current liabilities 485,633 494,465
Operating lease liabilities,
non-current 218,043
Deferred revenue, non-current 97,419 116,604
Other contract liabilities,
non-current 1,174 1,296
Other liabilities 4,615 22,209
TOTAL LIABILITIES 806,884 634,574
STOCKHOLDERS' EQUITY:
Common stock 14 13
Additional paid-in capital 2,755,408 2,711,340
Accumulated other comprehensive
loss 300 (42)
Accumulated deficit (1,252,372) (1,149,242)
TOTAL STOCKHOLDERS' EQUITY 1,503,350 1,562,069
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $
2,310,234 $
2,196,643
Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended April 30,
2019 2018
(As Adjusted)*
---
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $
(103,130) $
(52,322)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 34,631 2,392
Stock-based compensation
expense 48,871 25,366
Accretion and amortization of
marketable securities (925) 15
Amortization of deferred costs 9,652 6,563
Loss (gain) on disposal of fixed
assets 415 (20)
Changes in assets and liabilities:
Accounts receivable 95,496 65,840
Contract assets (531) 2,845
Prepaid expenses and other
assets 9 8,167
Deferred costs (9,412) (4,530)
Accounts payable (2,605) (121)
Accrued compensation (12,530) (14,627)
Accrued expenses and other
liabilities (28) 821
Other contract liabilities (5,244) 233
Operating lease liabilities (11,079)
Deferred revenue (32,130) (16,259)
Net cash provided by operating
activities 11,460 24,363
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable
securities and other
investments (196,453) (114,243)
Proceeds from sale of marketable
securities and other
investments 9,271 13,256
Maturities of marketable
securities and other
investments 129,998 114,213
Capital expenditures (2,693) (4,214)
Net cash (used in) provided by
investing activities (59,877) 9,012
CASH FLOWS FROM FINANCING ACTIVITIES
Taxes paid related to net share
settlement of restricted stock
units (7,797) (906)
Proceeds from employee stock
plans 5,949 7,081
Net cash (used in) provided by
financing activities (1,848) 6,175
Effect of exchange rate changes
on cash, cash equivalents and
restricted cash (1,060) (381)
Net (decrease) increase in cash,
cash equivalents and restricted
cash (51,325) 39,169
Cash, cash equivalents and
restricted cash -Beginning of
period 162,039 61,299
Cash, cash equivalents and
restricted cash -End of period $
110,714 $
100,468
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid for income taxes $
1,882 $
1,161
Cash paid for operating lease
liabilities $
11,079
$
SUPPLEMENTAL DISCLOSURES OF NON-
CASH INVESTING AND FINANCING
ACTIVITIES
Purchases of property and
equipment in accounts payable and
other accrued liabilities $
49 $
1,706
Right-of-use assets obtained in
exchange of lease obligations $
4,161
$
* As adjusted to reflect the
impact of the full
retrospective adoption of Topic
606.
Cloudera, Inc.
Three Months Ended April 30, 2019
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 $
29,337 $
(3,819) $
(2,910) $
22,608
Subscription gross 81 2 2 85
margin
%
%
%
%
Cost of revenue-
Services 31,896 (4,260) 27,636
Services gross 2 13 % 15
margin %
%
%
Gross profit 126,235 8,079 2,910 137,224
Total gross margin 67 4 2 73
%
%
%
%
Research and
development 64,173 (17,841) 46,332
Sales and marketing 119,383 (13,364) (17,250) 88,769
General and
administrative 46,432 (9,587) 36,845
Loss from operations (103,753) 48,871 20,160 (34,722)
Operating margin (55) 26 11 (19)
%
%
%
%
Net loss (103,130) 48,871 20,160 (34,099)
Net loss per share,
basic and diluted $
(0.38) $
0.18 $
0.07 $
(0.13)
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 Non-GAAP
Compensation of Acquired
Expense Intangible
Assets
---
Cost of revenue-
Subscription $
15,807 $
(2,548) $
(622) $
12,637
Subscription gross 82 3 1 85
margin
%
%
%
%
Cost of revenue-
Services 17,544 (2,474) 15,070
Services gross (5) 15 % 10
margin
%
%
%
Gross profit 70,108 5,022 622 75,752
Total gross margin 68 5 1 73
%
%
%
%
Research and
development 43,664 (9,861) 33,803
Sales and marketing 61,810 (6,079) (35) 55,696
General and
administrative 16,336 (4,404) 11,932
Loss from operations (51,702) 25,366 657 (25,679)
Operating margin (50) 25 1 (25)
%
%
%
%
Net loss (52,322) 25,366 657 (26,299)
Net loss per share,
basic and diluted $
(0.36) $
0.17
$ $
(0.18)
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.
Cloudera, Inc.
Reconciliation of Non-GAAP Financial Guidance
(unaudited)
Fiscal 2020
(in millions) Q2 FY
---
GAAP net loss ($97) -($89) ($361) -($349)
Stock-based compensation
expense (*) 47 193
Amortization of acquired
intangible assets 20 78
Non-GAAP net loss ($30) -($22) ($90) -($78)
(*) 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.
