(MENAFNEditorial) iCrowdNewswire - Sep 8, 2017 - Q2 subscription revenue up 46% year-over-year- Net expansion rate of 140%- 45 net new Global 8000 customers added- Acquired Fast Forward Labs, leader in machine learning and applied artificial intelligence
PALO ALTO, Calif.—(NYSE: CLDR), the modern platform for machine learning and analytics optimized for the cloud, today reported results for its second quarter fiscal 2018, ended July31, 2017. Total revenue was$89.8 million, an increase of 39% from the second quarter fiscal 2017. Subscription revenue was$74.0 million, an increase of 46% from the year-ago period. Subscription revenue represented 82% of total revenue, up from 79% in second quarter fiscal 2017.
"In our fiscal second quarter, we outperformed on sales, customer acquisition, customer expansion and cash flow objectives," saidTom Reilly, chief executive officer at Cloudera. "The enterprise machine learning and analytics market is quickly emerging and we continue to lead its direction through technology and product innovation. In Q2, we exhibited strong momentum in the areas that drive sustained growth for Cloudera: machine learning, analytics and the cloud. Also, we are especially pleased to have strengthened our market position through the acquisition of a recognized leader in machine learning applied research, development and solutions, Fast Forward Labs."
GAAP loss from operations for the second quarter fiscal 2018 was$65.7 million, compared to a GAAP loss from operations of$38.8 millionfor the second quarter fiscal 2017. Non-GAAP loss from operations for the quarter was$25.3 million, compared to a non-GAAP loss from operations of$32.3 millionin the year-ago period.
Operating cash flow for the quarter was negative$22.8 millioncompared to operating cash flow of negative$28.5million in the second quarter fiscal 2017.
GAAP net loss per share for the second quarter fiscal 2018 was$0.48per share, based on weighted-average shares outstanding of 134.5 million shares, compared to a GAAP net loss per share in the second quarter fiscal 2017 of$1.07per share, based on weighted-average shares outstanding of 36.3 million shares. See 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 fiscal 2018 was$0.17per share, based on non-GAAP weighted-average shares outstanding of 136.5 million shares, compared to non-GAAP net loss per share in the second quarter fiscal 2017 of$0.29per share, based on non-GAAP weighted-average shares outstanding of 111.2million 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 ofJuly 31, 2017, the company had total cash, cash equivalents, marketable securities and restricted cash of$493.8 million.
Recent Business and Financial Highlights:
Subscription revenue was up 46% year-over-year to$74.0 million Subscription revenue represented 82% of total revenue, up from 79% in year-ago period Non-GAAP subscription gross margin for the quarter was 85%, 200 basis points higher than second quarter fiscal 2017 Dollar-based net expansion rate was 140% for the quarter 45 net new Global 8000 customers added Acquired Fast Forward Labs, leading machine learning and applied artificial intelligence research and development company, deepening Cloudera's expertise in the application of machine learning to practical business problems Recognized by Microsoft for machine learning and analytics on Azure; named 2017 U.S. Enterprise Partner Group Data Platform ISV Partner of the Year Achieved Service Capability & Performance (SCP) Standards certification for delivering world class customer service and support, the only modern data platform vendor to have earned this distinction Business Outlook
The outlook for the third quarter fiscal 2018, endingOctober 31, 2017, is:
Total revenue in the range of$90 to $92 million, representing 34% to 37% year-over-year growth Subscription revenue in the range of$74 million to $76 million, representing 40% to 44% year-over-year growth Non-GAAP net loss per share in the range of$0.25 to $0.23per share Non-GAAP weighted-average shares outstanding of approximately 138 million shares The outlook for fiscal 2018, endingJanuary 31, 2018, is:
Total revenue in the range of$355 million to $360 million, representing 36% to 38% year-over-year growth Subscription revenue in the range of$290 million to $295 million, representing 45% to 47% year-over-year growth Operating cash flow in the range of negative$65 million to $60 million Non-GAAP net loss per share in the range of$0.95 to $0.93per share Non-GAAP weighted-average shares outstanding of approximately 133 million shares Conference Call and Webcast Information
Cloudera is hosting a conference call for analysts and investors to discuss its second quarter fiscal 2018 results and the outlook for its third quarter fiscal 2018 and fiscal 2018 at2:00 p.m. Pacific Timetoday. 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: 67627548 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.
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
Clouderaand associated marks are trademarks or registered trademarks of Cloudera, Inc. All other company and product names may be trademarks of their respective owners.
Global 8000 Customer List
As previously disclosed in our final prospectus datedApril 27, 2017and filed with the Securities and Exchange Commission onApril 28, 2017we periodically update the Global 8000 list based on the FORBES Global 2000 list and information from Data.com. The FORBES Global 2000 list is updated annually in the second quarter of the calendar year and we have since restated our previously disclosed numbers of customers to allow for comparability.
Forward-Looking Statements
Statements in this press release that are not historical in nature are forward-looking statements that, within the meaning of the federal securities laws including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, involve known and unknown risks and uncertainties. Words such as "may", "will", "expect", "intend", "plan", "believe", "seek", "could", "estimate", "judgment", "targeting", "should", "anticipate", "goal" and variations of these words and similar expressions, are also intended to identify forward-looking statements. The forward-looking statements in this press release address a variety of subjects, including our belief that the enterprise machine learning and analytics market will quickly emerge and that we will continue to lead its direction through technology and product innovation, our expectation that we will continue our momentum in machine learning, analytics and the cloud, and our"Business Outlook" for our third quarter fiscal 2018 and fiscal 2018 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 Form 10-Q filed with the Securities and Exchange Commission, or the SEC, on June9, 2017 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 forward-looking non-GAAP gross margins,historical and forward-looking non-GAAP operating income (loss), non-GAAP net loss, non-GAAP net loss per share. These non-GAAP financial measures exclude stock-based compensation, acquisition- and disposition-related expenses (if any), amortization of acquired intangible assets, and donations of common stock made to the Cloudera Foundation 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 RSUs and 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 July31, Six Months Ended July31,
2017 2016
2017 2016
Revenue:
Subscription $
73,986 $
50,688 $
138,657 $
91,360
Services 15,842
13,768 30,767
29,581
Total revenue 89,828
64,456 169,424
120,941
Cost of revenue:(1) (2)
Subscription 15,215
9,706 41,687
19,057
Services 16,755
11,633 50,395
23,317
Total cost of revenue 31,970
21,339 92,082
42,374
Gross profit 57,858
43,117 77,342
78,567
Operating expenses:(1) (2)
Research and development 42,844
26,635 138,675
51,150
Sales and marketing 62,135
46,902 172,578
93,044
General and administrative 18,564
8,367 54,114
16,676
Total operating expenses 123,543
81,904 365,367
160,870
Loss from operations (65,685)
(38,787) (288,025)
(82,303)
Interest income, net 1,440
708 2,089
1,448
Other income (expense), net 817
(178) 839
(15)
Net loss before provision for income taxes (63,428)
(38,257) (285,097)
(80,870)
Provision for income taxes (801)
(470) (1,451)
(970)
Net loss $
(64,229) $
(38,727) $
(286,548) $
(81,840)
Net loss per share, basic and diluted $
(0.48) $
(1.07) $
(3.28) $
(2.27)
Weighted-average shares used in computing net loss per share, basic and diluted 134,506
36,257 87,293
36,090
_____________
(1)Amounts include stock‑based compensation expense as follows (in thousands):
Three Months Ended July31, Six Months Ended July31,
2017 2016
2017 2016
Cost of revenue subscription $
3,693 $
374 $
19,393 $
708
Cost of revenue services 3,890
457 24,227
931
Research and development 13,128
1,458 81,029
3,013
Sales and marketing 12,137
1,474 72,678
3,033
General and administrative 6,603
1,815 33,206
3,556
Total stock‑based compensation expense $
39,451 $
5,578 $
230,533 $
11,241
(2)Amounts include amortization of acquired intangible assets as follows (in thousands):
Three Months Ended July31, Six Months Ended July31,
2017 2016
2017 2016
Cost of revenue subscription $
510 $
514 $
1,024 $
969
Sales and marketing 431
431 861
861
Total amortization of acquired intangible assets $
941 $
945 $
1,885 $
1,830
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(as a percentage of total revenues)
(unaudited)
Three Months Ended July31, Six Months Ended July31,
2017 2016
2017 2016
Revenue:
Subscription 82
% 79
% 82
% 76
%
Services 18
21 18
24
Total revenue 100
100 100
100
Cost of revenue:(1) (2)
Subscription 17
15 24
16
Services 19
18 30
19
Total cost of revenue 36
33 54
35
Gross margin 64
67 46
65
Operating expenses:(1) (2) (3)
Research and development 48
41 82
42
Sales and marketing 69
73 102
77
General and administrative 20
13 32
14
Total operating expenses 137
127 216
133
Loss from operations (73)
(60) (170)
(68)
Interest income, net 1
1 1
1
Other income (expense), net 1
— 1
—
Net loss before provision for income taxes (71)
(59) (168)
(67)
Provision for income taxes (1)
(1) (1)
(1)
Net loss (72)
% (60)
% (169)
% (68)
%
___________
(1)Amounts include stock‑based compensation expense as a percentage of total revenue as follows:
Three Months Ended July31, Six Months Ended July31,
2017 2016
2017 2016
Cost of revenue subscription 4
% 1
% 11
% 1
%
Cost of revenue services 4
1 14
1
Research and development 15
2 48
2
Sales and marketing 14
2 43
2
General and administrative 7
3 20
3
Total stock-based compensation expense 44
% 9
% 136
% 9
%
(2)Amounts include amortization of acquired intangible assets as a percentage of total revenue as follows:
Three Months Ended July31, Six Months Ended July31,
2017 2016
2017 2016
Cost of revenue subscription 1
% 1
% 1
% 1
%
Sales and marketing —
— —
1
Total amortization of acquired intangible assets 1
% 1
% 1
% 2
%
Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
July31,
2017 January 31,
2017
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $
68,936 $
74,186
Short-term marketable securities 325,744
160,770
Accounts receivable, net 84,805
101,549
Prepaid expenses and other current assets 17,509
13,197
Total current assets 496,994
349,702
Property and equipment, net 13,027
13,104
Marketable securities, noncurrent 81,072
20,710
Intangible assets, net 5,166
7,051
Goodwill 31,516
31,516
Restricted cash 18,048
15,446
Other assets 3,994
5,015
TOTAL ASSETS $
649,817 $
442,544
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $
6,326 $
3,550
Accrued compensation 32,254
33,376
Other accrued liabilities 15,670
9,918
Deferred revenue, current portion 194,252
192,242
Total current liabilities 248,502
239,086
Deferred revenue, less current portion 36,869
25,182
Other liabilities 9,058
4,345
TOTAL LIABILITIES 294,429
268,613
Redeemable convertible preferred stock —
657,687
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock 7
2
Additional paid-in capital 1,318,447
192,795
Accumulated other comprehensive loss (521)
(556)
Accumulated deficit (962,545)
(675,997)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 355,388
(483,756)
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) $
649,817 $
442,544
Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended July31, Six Months Ended July31,
2017 2016
2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $
(64,229) $
(38,727) $
(286,548) $
(81,840)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 3,352
2,548 6,994
4,953
Stock-based compensation 39,451
5,578 230,533
11,241
Accretion and amortization of marketable securities (128)
1,184 414
1,966
Changes in assets and liabilities:
Accounts receivable (31,783)
(11,852) 16,744
4,011
Prepaid expenses and other assets (740)
(2,103) 639
(784)
Accounts payable 3,595
2,844 1,674
1,872
Accrued compensation 7,684
6,309 (4,983)
(3,128)
Accrued expenses and other liabilities 1,828
151 2,970
1,006
Deferred revenue 18,125
5,523 13,697
8,604
Net cash used in operating activities (22,845)
(28,545) (17,866)
(52,099)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities (276,807)
(50,365) (387,154)
(90,409)
Sales of marketable securities 11,523
14,931 43,198
34,372
Maturities of marketable securities 66,184
65,280 117,604
129,945
Cash used in business combinations, net of cash acquired —
— —
(2,700)
Capital expenditures (1,796)
(986) (1,971)
(6,135)
Net cash provided by (used in) investing activities (200,896)
28,860 (228,323)
65,073
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 4,450
804 5,932
1,633
Net cash provided by financing activities 243,783
804 243,618
1,633
Effect of exchange rate changes (78)
(204) (77)
34
Net increase (decrease) in cash, cash equivalents and restricted cash 19,964
915 (2,648)
14,641
Cash, cash equivalents and restricted cash — Beginning of period 67,020
49,720 89,632
35,994
Cash, cash equivalents and restricted cash — End of period $
86,984 $
50,635 $
86,984 $
50,635
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for income taxes $
723 $
257 $
1,352 $
654
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchases of property and equipment in other accrued liabilities $
3,054 $
570 $
3,054 $
570
Deferred 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 July31, 2017
GAAP Results Reconciled to non-GAAP Results
(in thousands, except per share amounts)
(unaudited)
GAAP Stock-based
compensation
expense
Amortization of
acquired
intangible
assets Non-GAAP
weighted-
average shares
outstanding
Non-GAAP
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
Cloudera, Inc.
Three Months Ended July31, 2016
GAAP Results Reconciled to non-GAAP Results
(in thousands, except per share amounts)
(unaudited)
GAAP Stock-based
compensation
expense
Amortization of
acquired
intangible
assets Non-GAAP
weighted-
average shares
outstanding
Non-GAAP
Cost of revenue- Subscription $
9,706 $
(374) $
(514) $
— $
8,818
Subscription gross margin 81
% 1
% 1
% —
% 83
%
Cost of revenue- Services 11,633
(457) —
— 11,176
Services gross margin 16
% 3
% —
% —
% 19
%
Gross profit 43,117
831 514
— 44,462
Total gross margin 67
% 1
% 1
% —
% 69
%
Research and development 26,635
(1,458) —
— 25,177
Sales and marketing 46,902
(1,474) (431)
— 44,997
General and administrative 8,367
(1,815) —
— 6,552
Loss from operations (38,787)
5,578 945
(32,264)
Operating margin (60)
% 9
% 1
% (50)
%
Net loss (38,727)
5,578 945
— (32,204)
Net loss per share, basic and diluted(1) $
(1.07) $
0.15 $
0.03 $
0.60 $
(0.29)
______________
(1) See below for a reconciliation of weighted-average shares outstanding used to calculate non-GAAP net loss per share
Cloudera, Inc.
GAAP weighted-average shares reconciled to non-GAAP weighted-average shares
(in thousands)
(unaudited)
Three Months Ended July31, Six Months Ended July31,
2017 2016
2017 2016
GAAP weighted-average shares, basic and diluted 134,506
36,257 87,293
36,090
Assumed preferred stock conversion 1,628
74,907 37,661
74,907
Assumed IPO issuance 375
— 477
—
Non-GAAP weighted-average shares, diluted 136,509
111,164 125,431
110,997
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) onMay 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 weight-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 2018
(in millions) Q3
FY
GAAP net loss ($70) - (67)
($427) - (425)
Stock-based compensation expense 34
298
Amortization of acquired intangible assets 1
3
Non-GAAP net loss ($35) - (32)
($126) - (124)
GAAP weighted-average shares, basic and diluted 137 - 139
112 - 114
Assumed preferred stock conversion —
19
Assumed IPO issuance —
1
Non-GAAP weighted-average shares, diluted 137 - 139
132 - 134
(1) Stock-based compensation expense in fiscal 2018 is expected to be $34 million in the third quarter and $33million in the fourth quarter. These amounts are 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.
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