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Cloudera (CLDR) Q3 Earnings Beat Estimates, Revenues Jump Y/Y

Zacks Equity Research

Cloudera CLDR reported third-quarter fiscal 2020 adjusted loss of 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 7 cents but wider than the year-ago quarter’s loss of 2 cents.

Revenues of $198.3 million surged 66.6% year over year and comfortably surpassed the consensus mark of $189 million.

Adjusted annualized recurring revenues (ARR) were $697.4 million, up 13% year over year. Customers with annualized recurring revenues greater than $100,000 were 977, up 24 sequentially.

Quarter Details

The year-over-year growth in revenues was driven by a 65.7% jump in subscription revenues (84.2% of revenues) that totaled $166.9 million. Moreover, services (15.8% of revenues) soared 72% year over year to $31.4 million.

During the quarter, the company launched the Cloudera Data Platform (CDP) on Amazon Web Services and Microsoft Azure. Cloudera also delivered CDP Data Center, its next-generation, on-premises offering.
 

Cloudera, Inc. Price, Consensus and EPS Surprise

Cloudera, Inc. Price, Consensus and EPS Surprise

Cloudera, Inc. price-consensus-eps-surprise-chart | Cloudera, Inc. Quote

 

In the reported quarter, gross margin contracted 210 basis points (bps) on a year-over-year basis to 76.8%. While subscription gross margin contracted 260 bps on a year-over-year basis, services gross margin expanded 240 bps.

Research and development (R&D), sales and marketing (S&M) and general and administrative (G&A) expenses surged 57.8%, 67.9% and 71.4% to $47 million, $83.1 million and $30.5 million, respectively.

Additionally, as a percentage of revenues, S&M and G&A expenses expanded 30 bps and 40 bps, respectively. However, R&D expenses shrank 130 bps from the year-ago quarter.

Loss from operations widened to $8.2 million compared with the year-ago quarter’s loss of $3.1 million.

Balance Sheet & Cash Flow

As of Oct 31, 2019, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $498.9 million compared with $508.6 million reported in the previous quarter.

Operating cash outflow was $6.1 million in third-quarter fiscal 2020 compared with $33 million in second-quarter fiscal 2020.

Guidance

For fourth-quarter fiscal 2020, Cloudera expects revenues between $200 million and $203 million.

Subscription revenues are estimated between $173 million and $176 million.

Non-GAAP net loss is expected between 4 cents and 2 cents per share.

For fiscal 2020, Cloudera expects revenues between $782 million and $785 million. ARR is expected between $700 million and $720 million.

Subscription revenues are estimated between $659 million and $662 million.

Non-GAAP net loss is expected between 21 cents and 19 cents per share.

Moreover, operating cash outflow is expected to be $45-$55 million.

Zacks Rank & Stocks to Consider

Currently, Cloudera carries a Zacks Rank #4 (Sell).

Alteryx AYX, Box BOX and Zendesk ZEN are stocks worth considering in the same industry. While Alteryx and Box carry a Zacks Rank #2 (Buy), Zendesk sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Alteryx, Box and Zendesk is currently pegged at 39.9%, 26% and 29.5%, respectively.

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