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Cloudera (CLDR) to Report Q1 Earnings: What's in Store?

Zacks Equity Research

Cloudera CLDR is set to release first-quarter fiscal 2021 results on Jun 3.

For the quarter, the company expects total revenues between $202 million and $207 million. On a non-GAAP basis, the bottom line is expected in the range of a loss of 1 cent to earnings of 1 cent.

The Zacks Consensus Estimate for revenues is pegged at $203.5 million, suggesting growth of 8.5% from the figure reported in the year-ago period.

The consensus mark for earnings stayed at a penny per share over the past 30 days. Cloudera had reported a loss of 13 cents in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average positive surprise being 95.1%.
Let’s see how things have shaped up for this announcement.

Factors to Watch

The company’s services business is more likely to be affected by the coronavirus outbreak than subscription business, which benefits from a recurring revenue model.

Cloudera, Inc. Price and EPS Surprise

Cloudera, Inc. Price and EPS Surprise

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

Notably, the company expects subscription revenues in the range of $180 million to $183 million, indicating an increase of 17% year over year.

Cloudera’s portfolio strength and sales force reorganization are expected to have helped it win customers in the to-be-reported quarter.

This seems to be a trend as at the end of the last reported quarter too, the company had gained 27 customers sequentially to hit 1004 customers with annual recurring revenues of more than $100,000.

Notably, LINE Corporation chose Cloudera to support the growth of LINE’s AI technology-based business and the Data Science and Engineering Center (DSEC) in the to-be-reported quarter.

Additionally, Cloudera’s partnership with International Business Machines IBM and the launch of Cloudera Data Platform (CDP) on Amazon’s AMZN Amazon Web Services (AWS) and Microsoft’s MSFT Azure in the previous quarter are expected to have helped this Zacks Rank #3 (Hold) company gain a sizable market share in the to-be-reported quarter.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, IBM resells Cloudera Enterprise Data Hub, Cloudera DataFlow and Cloudera Data Science Workbench. Additionally, Cloudera resells IBM's Watson Studio and BigSQL.

The first-quarter fiscal 2021 top line is expected to have benefited from the aforementioned tailwinds.

Key Developments in Q1

During the first quarter, Cloudera chose Red Hat OpenShift as the preferred container solution for CDP Private Cloud to deliver powerful, self-service analytics and enterprise-grade performance with the granular security and governance policies that IT leaders demand.

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