Cloudera Reports Third Quarter Fiscal Year 2020 Financial Results
PALO ALTO, Calif., Dec. 5, 2019 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its third quarter of fiscal year 2020, ended October 31, 2019. Total revenue for the third quarter was $198.3 million, and subscription revenue was $166.9 million. Annualized Recurring Revenue grew 13% year-over-year.
"I am pleased to report that we executed well in Q3, building on the positive momentum generated in Q2. We delivered strong operating and financial results across the board and launched the Cloudera Data Platform to a great reception from customers, partners and industry analysts," said Marty Cole, chairman of the board and interim chief executive officer, Cloudera. "Customers now have a highly competitive set of cloud-native services from Cloudera, and we've made hybrid cloud data management and analytics a reality via the industry's first enterprise data cloud."
Except where noted, all numbers reported for prior periods are presented for Cloudera on a standalone basis, since there is no comparative year-over-year financial information for the combined company.
GAAP loss from operations for the third quarter of fiscal 2020 was $82.5 million, compared to a GAAP loss from operations of $25.7 million for the third quarter of fiscal 2019.
Non-GAAP loss from operations for the third quarter of fiscal 2020 was $8.2 million, compared to a non-GAAP loss from operations of $3.1 million for the third quarter of fiscal 2019.
Operating cash flow for the third quarter of fiscal 2020, which includes $6.1 million of merger-related payments, was negative $5.9 million, compared to operating cash flow of negative $6.8 million for the third quarter of fiscal 2019.
GAAP net loss per share for the third quarter of fiscal 2020 was $0.29 per share, based on weighted-average shares outstanding of 283.3 million shares, compared to a GAAP net loss per share of $0.17 per share for the third quarter of fiscal 2019, based on weighted-average shares outstanding of 152.2 million shares. See financial statement tables below for additional information regarding historical and forward-looking stock-based compensation expense and shares outstanding.
Non-GAAP net loss per share for the third quarter of fiscal 2020 was $0.03 per share, based on weighted-average shares outstanding of 283.3 million shares, compared to a non-GAAP net loss per share of $0.02 per share for the third quarter of fiscal 2019, based on weighted-average shares outstanding of 152.2 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, 2019, the company had total cash, cash equivalents, marketable securities and restricted cash of $502.2 million.
Recent Business and Financial Highlights
-- Annualized Recurring Revenue was $697.4 million, representing 13%
year-over-year growth
-- Non-GAAP subscription gross margin for the quarter was 86%
-- Operating cash flow was negative $5.9 million, including $6.1 million of
merger-related payments
-- Customers with Annualized Recurring Revenue greater than $100,000 were
977, up 24 from the prior quarter
-- Launched the Cloudera Data Platform (CDP) on Amazon Web Services and
Microsoft Azure
-- Delivered CDP Data Center, our next-generation on-premises offering,
representing the strongest elements of the former Cloudera and
Hortonworks platforms and new innovations for better scalability,
performance and private cloud readiness
-- Cloudera debuted as a Strong Performer in The Forrester Wave: Streaming
Analytics, Q3 2019 and was named one of "The 11 providers that matter
most" in streaming analytics
Business Outlook
The outlook for the fourth quarter of fiscal 2020, ending January 31, 2020, is:
-- Total revenue in the range of $200 million to $203 million
-- Subscription revenue in the range of $173 million to $176 million
-- Non-GAAP net loss per share in the range of $0.04 to $0.02 per share
-- Weighted-average shares outstanding of approximately 294 million shares
The outlook for fiscal 2020, ending January 31, 2020, is:
-- Annualized Recurring Revenue in the range of $700 million to $720
million
-- Total revenue in the range of $782 million to $785 million
-- Subscription revenue in the range of $659 million to $662 million
-- Operating cash flow in the range of negative $55 million to negative $45
million, including $60 million of merger-related payments
-- Non-GAAP net loss per share in the range of $0.21 to $0.19 per share
-- Weighted-average shares outstanding of approximately 281 million shares
Conference Call and Webcast Information
Cloudera is hosting a conference call for analysts and investors to discuss its third quarter fiscal 2020 results and the outlook for its fourth 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: 4252879
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 expectations regarding the acceptance by our enterprise customers of enterprise data cloud and the Cloudera Data Platform, and our "Business Outlook" for our fourth 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 Annual Report on Form 10-K and our Quarterly Reports 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 cost of revenue-subscription, non-GAAP cost of revenue-services, non-GAAP subscription gross margin, non-GAAP services gross margin, non-GAAP gross margin, non-GAAP gross profit, non-GAAP operating expenses, 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 and audited condensed consolidated statement of operations.
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 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 does not reflect 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 October 31, Nine Months Ended October 31,
---
2019 2018 2019 2018
(As Adjusted)* (As Adjusted)*
---
Revenue:
Subscription $
166,932 $
100,757 $
485,872 $
283,318
Services 31,360 18,231 96,599 52,108
Total revenue 198,292 118,988 582,471 335,426
Cost of revenue:(1) (2)
Subscription 30,224 13,996 88,636 44,764
Services 27,404 15,980 87,355 50,695
Total cost of revenue 57,628 29,976 175,991 95,459
Gross profit 140,664 89,012 406,480 239,967
Operating expenses:(1) (2)
Research and development 66,657 37,563 196,572 121,027
Sales and marketing 117,783 55,055 349,657 170,246
General and
administrative 38,691 22,067 135,568 55,493
Total operating expenses 223,131 114,685 681,797 346,766
Loss from operations (82,467) (25,673) (275,317) (106,799)
Interest income, net 2,756 2,440 9,203 6,420
Other income (expense),
net (46) (1,126) 291 (3,154)
Loss before provision for
income taxes (79,757) (24,359) (265,823) (103,533)
Provision for income
taxes (2,365) (1,498) (6,472) (3,595)
Net loss $
(82,122) $
(25,857) $
(272,295) $
(107,128)
Net loss per share, basic
and diluted $
(0.29) $
(0.17) $
(0.98) $
(0.72)
Weighted-average shares
used in computing net
loss per share, basic
and diluted 283,267 152,245 277,260 149,507
* 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 October 31, Nine Months Ended October 31,
2019 2018 2019 2018
Cost of revenue -
subscription $
4,306 $
2,016 $
12,314 $
7,060
Cost of revenue -
services 4,620 2,290 13,076 7,540
Research and
development 19,697 7,805 55,991 26,002
Sales and marketing 17,400 5,504 46,199 14,281
General and
administrative 8,191 4,275 37,238 12,848
Total stock-based
compensation
expense $
54,214 $
21,890 $
164,818 $
67,731
(2) Amounts include amortization of
acquired intangible assets as
follows (in thousands):
Three Months Ended October 31, Nine Months Ended October 31,
2019 2018 2019 2018
Cost of revenue
- subscription $
2,761 $
622 $
8,358 $
1,866
Sales and
marketing 17,264 35 51,764 105
Total
amortization of
acquired
intangible
assets $
20,025 $
657 $
60,122 $
1,971
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(as a percentage of total revenue)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
---
2019 2018 2019 2018
(As Adjusted)* (As Adjusted)*
---
Revenue:
Subscription 84 85 83 84
% % % %
Services 16 15 17 16
Total revenue 100 100 100 100
Cost of revenue(1) (2):
Subscription 15 12 15 13
Services 14 13 15 15
Total cost of revenue 29 25 30 28
Gross margin 71 75 70 72
Operating expenses(1) (2):
Research and development 34 32 34 36
Sales and marketing 59 46 60 51
General and
administrative 20 19 23 17
Total operating expenses 113 97 117 104
Loss from operations (42) (22) (47) (32)
Interest income, net 1 2 2 2
Other income (expense),
net - (1) (1)
Loss before provision for
income taxes (41) (21) (45) (31)
Provision for income
taxes (1) (1) (2) (1)
Net loss (42) (22) (47) (32)
% % % %
===
* 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 October 31, Nine Months Ended October 31,
2019 2018 2019 2018
Cost of revenue - 2 2 2 2
subscription % % % %
Cost of revenue -
services 2 2 2 2
Research and
development 10 7 10 8
Sales and marketing 9 5 8 4
General and
administrative 4 4 6 4
Total stock-based
compensation % % % %
expense 27 20 28 20
(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,
2019 2018 2019 2018
Cost of revenue 1 1 1 1
- subscription % % % %
Sales and
marketing 9 9
Total
amortization of % % % %
acquired
intangible
assets 10 1 10 1
Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
October 31, January 31,
2019 2019
---
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $
113,203 $
158,672
Marketable securities, current 292,812 322,005
Accounts receivable, net 162,454 242,980
Contract assets 5,522 4,824
Deferred costs 42,987 32,100
Prepaid expenses and other
current assets 28,968 38,281
Total current assets 645,946 798,862
Property and equipment, net 24,524 27,619
Marketable securities, non-
current 92,867 56,541
Intangible assets, net 625,137 679,326
Goodwill 590,361 586,456
Deferred costs, non-current 29,648 36,913
Restricted cash 3,352 3,367
Operating lease right-of-use
assets 209,920
Other assets 11,160 7,559
TOTAL ASSETS $
2,232,915 $
2,196,643
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $
12,204 $
8,185
Accrued compensation 58,552 53,590
Other contract liabilities,
current 7,732 17,177
Other accrued liabilities 25,581 24,548
Operating lease liabilities,
current 28,915
Deferred revenue, current 364,442 390,965
Total current liabilities 497,426 494,465
Operating lease liabilities,
non-current 197,776
Deferred revenue, non-current 80,729 116,604
Other contract liabilities,
non-current 931 1,296
Other liabilities 7,192 22,209
TOTAL LIABILITIES 784,054 634,574
STOCKHOLDERS' EQUITY:
Common stock 14 13
Additional paid-in capital 2,869,406 2,711,340
Accumulated other comprehensive
income (loss) 978 (42)
Accumulated deficit (1,421,537) (1,149,242)
TOTAL STOCKHOLDERS' EQUITY 1,448,861 1,562,069
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $
2,232,915 $
2,196,643
Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended October 31, Nine Months Ended October 31,
---
2019 2018 2019 2018
(As Adjusted)* (As Adjusted)*
---
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $
(82,122) $
(25,857) $
(272,295) $
(107,128)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 33,956 2,691 103,020 7,759
Stock-based compensation
expense 54,214 21,890 164,818 67,731
Accretion and amortization of
marketable securities (702) (466) (2,362) (661)
Amortization of deferred costs 12,606 7,991 33,579 21,794
Loss (gain) on disposal of fixed
assets - (2) 459 (22)
Changes in assets and liabilities:
Accounts receivable (1,708) 3,973 78,952 38,161
Contract assets 47 (29) (698) 2,821
Prepaid expenses and other
assets 157 (3,949) (3,056) 8,348
Deferred costs (15,393) (7,865) (37,200) (21,419)
Accounts payable 7,854 (22) 4,193 561
Accrued compensation 3,767 2,403 (2,323) (7,034)
Accrued expenses and other
liabilities (6,649) 597 (22,994) 4,210
Other contract liabilities (325) (493) (9,810) (108)
Deferred revenue (11,592) (7,646) (61,693) (20,987)
Net cash used in operating
activities (5,890) (6,784) (27,410) (5,974)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable
securities and other
investments (81,273) (116,538) (392,497) (368,914)
Proceeds from sale of marketable
securities and other
investments 17,356 3,715 56,741 36,009
Maturities of marketable
securities and other
investments 96,228 115,300 331,630 346,203
Cash used in business
combinations, net of cash
acquired (4,500) (4,500)
Capital expenditures (1,767) (1,628) (6,488) (9,291)
Net cash provided by (used in)
investing activities 26,044 849 (15,114) 4,007
CASH FLOWS FROM FINANCING ACTIVITIES
Taxes paid related to net share
settlement of restricted stock
units (5,439) (4,094) (21,085) (8,482)
Proceeds from employee stock
plans 10,413 7,430 19,633 18,760
Net cash provided by (used in)
financing activities 4,974 3,336 (1,452) 10,278
Effect of exchange rate changes
on cash, cash equivalents and
restricted cash - (411) (1,508) (1,626)
Net increase (decrease) in cash,
cash equivalents and restricted
cash 25,128 (3,010) (45,484) 6,685
Cash, cash equivalents and
restricted cash -Beginning of
period 91,427 70,994 162,039 61,299
Cash, cash equivalents and
restricted cash -End of period $
116,555 $
67,984 $
116,555 $
67,984
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for income taxes $
1,962 $
1,171 $
5,607 $
3,069
Cash paid for operating lease
liabilities $
2,864
$ $
27,898
$
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING
AND FINANCING ACTIVITIES
Purchases of property and
equipment in accounts payable
and other accrued liabilities $
138 $
202 $
138 $
202
Right-of-use assets obtained
in exchange for new operating
lease liabilities $
775
$ $
3,741
$
* As adjusted to reflect the
impact of the full
retrospective adoption of Topic
606.
Cloudera, Inc.
Three Months Ended October 31, 2019
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 $
30,224 $
(4,306) $
(2,761) $
23,157
Subscription gross 82 3 2 86
margin
%
% %
%
Cost of revenue-
Services 27,404 (4,620) 22,784
Services gross 13 15 % 27
margin
%
%
%
Gross profit 140,664 8,926 2,761 152,351
Total gross margin 71 5 1 77
%
% %
%
Research and
development 66,657 (19,697) 46,960
Sales and marketing 117,783 (17,400) (17,264) 83,119
General and
administrative 38,691 (8,191) 30,500
Loss from operations (82,467) 54,214 20,025 (8,228)
Operating margin (42) 27 10 (4)
%
%
%
%
Net loss (82,122) 54,214 20,025 (7,883)
Net loss per share,
basic and diluted $
(0.29) $
0.19 $
0.07 $
(0.03)
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 12 13 % 25
margin
%
%
%
Gross profit 89,012 4,306 622 93,940
Total gross margin 75 4 1 79
%
%
%
%
Research and
development 37,563 (7,805) 29,758
Sales and marketing 55,055 (5,504) (35) 49,516
General and
administrative 22,067 (4,275) 17,792
Loss from operations (25,673) 21,890 657 (3,126)
Operating margin (22) 18 1 (3)
%
%
%
%
Net loss (25,857) 21,890 657 (3,310)
Net loss per share,
basic and diluted $
(0.17) $
0.14
$ $
(0.02)
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) Q4 FY
---
GAAP net loss ($84) -($78) ($357) -($351)
Stock-based compensation
expense (*) 52 218
Amortization of acquired
intangible assets 20 80
Non-GAAP net loss ($12) -($6) ($59) -($53)
(*) 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.
