Cloudera Reports Second Quarter Fiscal 2021 Financial Results

SANTA CLARA, Calif., Sept. 2, 2020 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its second quarter of fiscal 2021, ended July 31, 2020. Total revenue for the second quarter was $214.3 million, an increase of 9% as compared to the second quarter of fiscal 2020. Subscription revenue was $191.5 million, an increase of 17% as compared to the second quarter of fiscal 2020. Annualized Recurring Revenue grew 12% year-over-year.

"We achieved a major milestone last month with the general availability of Cloudera Data Platform Private Cloud, significantly advancing our Enterprise Data Cloud strategy," said Rob Bearden, chief executive officer, Cloudera. "CDP offers a powerful hybrid architecture that separates compute and storage while maintaining data context for greater agility, ease of use and more efficient infrastructure consumption. With CDP, we are participating in the fastest growing segment of the market through cloud-native services. Uniquely, we also benefit from demand for hybrid and multi-cloud solutions that allow enterprises to optimize the performance, cost and security of workloads and use cases."

Second quarter Fiscal 2021 results

  • GAAP loss from operations for the second quarter of fiscal 2021 was $36.5 million, compared to $89.1 million for the second quarter of fiscal 2020
  • Non-GAAP income from operations for the second quarter of fiscal 2021 was $29.8 million, compared to a non-GAAP loss from operations of $7.4 million for the second quarter of fiscal 2020
  • Operating cash flow for the second quarter of fiscal 2021 was $32.4 million, compared to negative $33.0 million for the second quarter of fiscal 2020
  • GAAP net loss per share for the second quarter of fiscal 2021 was $0.12 per share, compared to $0.31 per share for the second quarter of fiscal 2020
  • Non-GAAP net income per share for the second quarter of fiscal 2021 was $0.10 per share, compared to a non-GAAP net loss per share of $0.02 per share for the second quarter of fiscal 2020

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading Non-GAAP Financial Measures.

As of July 31, 2020, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $568.7 million.

Recent Business and Financial Highlights

  • Annualized Recurring Revenue at the conclusion of the second quarter of fiscal 2021 was $739 million, representing 12% year-over-year growth
  • GAAP subscription gross margin for the quarter was 85%, up from 82% in the second quarter of fiscal 2020
  • Non-GAAP subscription gross margin for the quarter was 89%, up from 86% in the second quarter of fiscal 2020
  • Cloudera Data Platform (CDP) Private Cloud is now generally available
  • CDP Public Cloud is now available on AWS Marketplace in strategic collaboration agreement with AWS
  • Sarah Shin was promoted to new role of Chief Diversity Officer

Business Outlook

The outlook for the third quarter of fiscal 2021, ending October 31, 2020, is:

  • Total revenue in the range of $207 million to $210 million
  • Subscription revenue in the range of $187 million to $190 million
  • Non-GAAP operating income in the range of $27 million to $31 million
  • Non-GAAP net income per share in the range of $0.08 to $0.10 per share
  • Diluted weighted-average share count of approximately 320 million shares

The outlook for fiscal 2021, ending January 31, 2021, is:

  • Total revenue in the range of $839 million to $853 million
  • Subscription revenue in the range of $755 million to $765 million
  • Non-GAAP operating income in the range of $102 million to $112 million
  • Non-GAAP net income per share in the range of $0.32 to $0.35
  • Diluted weighted-average share count of approximately 315 million shares

The business outlook is based on the assumption that the recessionary impact of the coronavirus pandemic (COVID-19) will continue through Cloudera's fourth quarter of our fiscal 2021.

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its second quarter fiscal 2021 results and the outlook for its third quarter of fiscal 2021 and full year fiscal 2021 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: +1-833-579-0900
  • Participant International Number: +1-778-560-2567
  • Conference ID: 3554107

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/
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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 assumptions, goals and targets, including our "Business Outlook" for our third quarter of fiscal 2021 and our full year fiscal 2021 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, the impact of and uncertainties related to COVID-19, 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 our SEC filings on the SEC's website at www.sec.gov. Additionally, these forward-looking statements, particularly our guidance, involve risk, uncertainties and assumptions, including those related to the impact of COVID-19 on our business and global economic conditions. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, the timeframes for and severity of the impact of COVID-19 on our customers' purchasing decisions and the length of our sales cycles, particularly for customers in certain industries highly affected by COVID-19. 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 operating margin, and historical and forward-looking non-GAAP income/loss from operations, non-GAAP net income/loss, and non-GAAP net income/loss per share. These non-GAAP financial measures exclude stock-based compensation, acquisition and disposition-related expenses (if any), extraordinary non-cash real estate impairment charges (if any), and amortization of acquired intangible assets from our 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 financial statement tables titled "Use of Non-GAAP Financial Information" as well as the related financial statement 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 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. ARR does not reflect non-recurring partner revenue, subscription revenue with certain related parties, custom engineering, remote operation and management services, or premium add-on support.

 

Cloudera, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)



Three Months Ended July 31,


Six Months Ended July 31,


2020


2019


2020


2019

Revenue:








Subscription

$

191,522



$

164,102



$

378,607



$

318,940


Services

22,814



32,609



46,189



65,239


Total revenue

214,336



196,711



424,796



384,179


Cost of revenue:(1) (2)








Subscription

27,929



29,075



56,565



58,412


Services

21,710



28,055



47,315



59,951


Total cost of revenue

49,639



57,130



103,880



118,363


Gross profit

164,697



139,581



320,916



265,816


Operating expenses:(1) (2)








Research and development

62,304



65,742



126,520



129,915


Sales and marketing

105,760



112,491



218,895



231,874


General and administrative 

33,167



50,445



67,842



96,877


Total operating expenses

201,231



228,678



413,257



458,666


Loss from operations

(36,534)



(89,097)



(92,341)



(192,850)


Interest income

1,444



3,156



3,685



6,447


Other income (expense), net

980



104



(1,517)



337


Loss before provision for income taxes

(34,110)



(85,837)



(90,173)



(186,066)


Provision for income taxes

(1,887)



(1,206)



(3,838)



(4,107)


Net loss

$

(35,997)



$

(87,043)



$

(94,011)



$

(190,173)


Net loss per share, basic and diluted

$

(0.12)



$

(0.31)



$

(0.32)



$

(0.69)


Weighted-average shares used in computing net loss per share,
basic and diluted

300,103



276,778



297,724



274,207



(1) Amounts include stock-based compensation expense as follows (in thousands):



Three Months Ended July 31,


Six Months Ended July 31,


2020


2019


2020


2019

Cost of revenue – subscription

$

3,684



$

4,189



$

7,676



$

8,008


Cost of revenue – service

3,004



4,196



6,991



8,456


Research and development

17,057



18,453



36,881



36,294


Sales and marketing

14,031



15,435



29,854



28,799


General and administrative

8,841



19,460



18,653



29,047


Total stock-based compensation expense

$

46,617



$

61,733



$

100,055



$

110,604



(2) Amounts include amortization of acquired intangible assets as follows (in thousands):



Three Months Ended July 31,


Six Months Ended July 31,


2020


2019


2020


2019

Cost of revenue – subscription

$

3,080



$

2,687



$

6,159



$

5,597


Sales and marketing

16,596



17,250



33,193



34,500


Total amortization of acquired intangible assets

$

19,676



$

19,937



$

39,352



$

40,097


 

Cloudera, Inc.

Condensed Consolidated Balance Sheets

(in thousands)































July 31,
2020


January 31,
2020
















(unaudited)



ASSETS


















Current assets:


















Cash and cash equivalents















$

143,171



$

107,638


Marketable securities















288,330



253,361


Accounts receivable, net















149,326



249,971


Deferred costs















46,199



54,776


Prepaid expenses and other current assets















28,245



42,155


Total current assets















655,271



707,901


Property and equipment, net















20,995



21,988


Marketable securities, non-current















133,890



122,193


Intangible assets, net















565,884



605,236


Goodwill















590,361



590,361


Deferred costs, non-current















32,717



35,260


Operating lease right-of-use assets















194,751



204,642


Other assets















9,657



12,209


TOTAL ASSETS















$

2,203,526



$

2,299,790


LIABILITIES AND STOCKHOLDERS' EQUITY


















Current liabilities:


















Accounts payable















$

4,337



$

3,858


Accrued compensation















55,666



61,826


Other contract liabilities















8,351



12,225


Other accrued liabilities















19,583



22,297


Operating lease liabilities















21,629



19,181


Deferred revenue















409,873



460,561


Total current liabilities















519,439



579,948


Operating lease liabilities, non-current















181,339



192,324


Deferred revenue, non-current















67,747



81,926


Other accrued liabilities, non-current















6,462



7,223


TOTAL LIABILITIES















774,987



861,421


STOCKHOLDERS' EQUITY:


















Common stock















15



15


Additional paid-in capital















3,008,394



2,923,905


Accumulated other comprehensive income















763



273


Accumulated deficit















(1,580,633)



(1,485,824)


TOTAL STOCKHOLDERS' EQUITY















1,428,539



1,438,369


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY















$

2,203,526



$

2,299,790


 

Cloudera, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Three Months Ended July 31,


Six Months Ended July 31,


2020


2019


2020


2019









CASH FLOWS FROM OPERATING ACTIVITIES








Net loss  

$

(35,997)



$

(87,043)



$

(94,011)



$

(190,173)


Adjustments to reconcile net loss to net cash provided by (used in) operating activities:








Depreciation and amortization  

22,366



22,850



44,939



46,166


 Non-cash lease expense

11,391



11,583



22,692



22,898


Stock-based compensation expense 

46,617



61,733



100,055



110,604


Amortization of deferred costs

16,785



11,321



33,410



20,973


Other

1,604



(691)



5,126



(1,201)


Changes in assets and liabilities:








Accounts receivable  

18,512



(14,836)



100,340



80,660


Prepaid expenses and other assets  

4,102



(3,436)



14,628



(3,958)


Deferred costs

(11,667)



(12,395)



(22,290)



(21,807)


Accounts payable  

(1,137)



(1,056)



(830)



(3,661)


Accrued compensation  

11,766



6,440



(6,646)



(6,090)


Other accrued liabilities  

(1,384)



8,717



(4,279)



8,689


 Other contract liabilities

(3,377)



(4,120)



(3,874)



(9,242)


Operating lease liabilities

(18,698)



(13,955)



(21,206)



(25,034)


Deferred revenue  

(28,435)



(18,092)



(67,249)



(50,344)


Net cash provided by (used in) operating activities  

32,448



(32,980)



100,805



(21,520)


CASH FLOWS FROM INVESTING ACTIVITIES








Purchases of marketable securities

(192,709)



(114,771)



(273,569)



(311,224)


Proceeds from sale of marketable securities

38,113



30,114



104,172



39,385


Maturities of marketable securities

86,916



105,404



123,710



235,402


Capital expenditures  

(3,341)



(2,028)



(4,430)



(4,721)


Net cash (used in) provided by investing activities  

(71,021)



18,719



(50,117)



(41,158)


CASH FLOWS FROM FINANCING ACTIVITIES








Repurchases of common stock





(25,974)




Taxes paid related to net share settlement of restricted stock units

(9,266)



(7,847)



(23,283)



(15,645)


Proceeds from employee stock plans

28,662



3,270



33,639



9,220


Net cash provided by (used in) financing activities  

19,396



(4,577)



(15,618)



(6,425)


Effect of exchange rate changes on cash, cash equivalents and
restricted cash

1,423



(449)



463



(1,509)


Net (decrease) increase in cash, cash equivalents and restricted cash

(17,754)



(19,287)



35,533



(70,612)


Cash, cash equivalents and restricted cash — Beginning of period

164,277



110,714



110,990



162,039


Cash, cash equivalents and restricted cash — End of period 

$

146,523



$

91,427



$

146,523



$

91,427




Reconciliation of cash, cash equivalents and restricted cash as shown in the statement of cash flows:



As of July 31,



2020


2019

Cash and cash equivalents


$

143,171



$

88,075


Restricted cash included in Other assets


3,352



3,352


Total cash, cash equivalents and restricted cash


$

146,523



$

91,427


 

Cloudera, Inc.

Three Months Ended July 31, 2020

GAAP Results Reconciled to Non-GAAP Results

(in thousands, except percentage and per share amounts)

(unaudited)





















GAAP


Stock-Based
Compensation
Expense


Amortization of
Acquired
Intangible Assets


Non-GAAP

Cost of revenue- Subscription









$

27,929



$

(3,684)



$

(3,080)



$

21,165


Subscription gross margin









85

%


2

%


2

%


89

%

Cost of revenue- Services









21,710



(3,004)





18,706


Services gross margin









5

%


13

%


%


18

%

Gross profit









164,697



6,688



3,080



174,465


Total gross margin









77

%


3

%


1

%


81

%

Research and development









62,304



(17,057)





45,247


Sales and marketing









105,760



(14,031)



(16,596)



75,133


General and administrative









33,167



(8,841)





24,326


(Loss) income from operations









(36,534)



46,617



19,676



29,759


Operating margin









(17)

%


22

%


9

%


14

%

Net (loss) income









(35,997)



46,617



19,676



30,296


Net (loss) income per share, basic









(0.12)



0.15



0.07



0.10


Net (loss) income per share, diluted (1)









$

(0.12)



$

0.15



$

0.07



$

0.10



(1) See below for a reconciliation of weighted-average shares outstanding used to calculate non-GAAP net income per share

 

Cloudera, Inc.

Three Months Ended July 31, 2019

GAAP Results Reconciled to Non-GAAP Results

(in thousands, except percentage and per share amounts)

(unaudited) 





















GAAP


Stock-Based
Compensation
Expense


Amortization of
Acquired
Intangible Assets


Non-GAAP

Cost of revenue- Subscription









$

29,075



$

(4,189)



$

(2,687)



$

22,199


Subscription gross margin









82

%


3

%


2

%


86

%

Cost of revenue- Services









28,055



(4,196)





23,859


Services gross margin









14

%


13

%


%


27

%

Gross profit









139,581



8,385



2,687



150,653


Total gross margin









71

%


4

%


1

%


77

%

Research and development









65,742



(18,453)





47,289


Sales and marketing









112,491



(15,435)



(17,250)



79,806


General and administrative









50,445



(19,460)





30,985


Loss from operations









(89,097)



61,733



19,937



(7,427)


Operating margin









(45)

%


31

%


10

%


(4)

%

Net loss









(87,043)



61,733



19,937



(5,373)


Net loss per share, basic and diluted









$

(0.31)



$

0.22



$

0.07



$

(0.02)


 

Cloudera, Inc.




GAAP weighted-average shares reconciled to non-GAAP weighted-average shares




(in thousands)




(unaudited) 



















































Three Months Ended July 31,























2020


2019

GAAP weighted-average shares, basic






















300,103



276,778


Effect of dilutive securities:

























Stock options, unvested restricted stock units and ESPP






















12,592




Non-GAAP weighted-average shares, diluted (1)






















312,695



276,778



(1) Non-GAAP weighted-average shares, diluted is intended to represent the weighted-average shares on a diluted basis for purposes of calculating Non-GAAP net income per share.

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 we exclude from our non-GAAP financial measures, we believe 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.

  • Extraordinary non-cash real estate impairment charges. We currently lease approximately 225,000 square feet of space for our former corporate headquarters in Palo Alto, California under a lease agreement that expires in 2027. Upon the completion of the merger with Hortonworks, we added approximately 92,000 square feet of space in Santa Clara, California under a lease agreement that expires in 2026 and we relocated our corporate headquarters to this space during the second quarter of fiscal 2021. Extraordinary non-cash real estate impairment charges relate to potential charges that we may incur as a result of future activities with respect to our leased office locations.

Cloudera, Inc.

Reconciliation of Non-GAAP Financial Guidance

(unaudited)











































Fiscal 2021

(in millions)




















Q3


FY

GAAP operating loss




















($34) - ($30)


($213) - ($178)

Stock-based compensation expense (*)




















41


187

Amortization of acquired intangible assets




















20


78

Extraordinary non-cash real estate impairment charges (*)





















50 - 25

Non-GAAP operating income




















$27 - $31


$102 - $112













































Fiscal 2021

(in millions)




















Q3


FY

GAAP net loss




















($35) - ($29)


($214) - ($180)

Stock-based compensation expense (*)




















41


187

Amortization of acquired intangible assets




















20


78

Extraordinary non-cash real estate impairment charges (*)





















50 - 25

Non-GAAP net income




















$26 - $32


$101 - $110


(*) Stock-based compensation expense and real-estate impairment charges are impacted by a number of variables, 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.

 

 

Cloudera, Inc. (PRNewsfoto/Cloudera, Inc.)

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SOURCE Cloudera, Inc.

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