U.S. markets closed

Cloudera Reports First Quarter Fiscal 2021 Financial Results

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

PALO ALTO, Calif. , June 3, 2020 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its first quarter of fiscal 2021, ended April 30, 2020 . Total revenue for the first quarter was $210.5 million , an increase of 12% as compared to the first quarter of fiscal 2020. Subscription revenue was $187.1 million , an increase of 21% as compared to the first quarter of fiscal 2020. Annualized Recurring Revenue grew 11% year-over-year.

"We executed extremely well in Q1, particularly as the pandemic was in full effect for more than half of our fiscal quarter," said Rob Bearden , chief executive officer, Cloudera. "We believe that remote working environments have placed heightened importance on data, data analysis and data security, which has increased the value of data architecture design and the criticality of hybrid cloud solutions. In addition, CDP Public Cloud is accomplishing exactly what we had hoped in that it has enabled a hybrid multi-cloud architecture for our customers and enhanced our value proposition with customers who plan to take advantage of public cloud infrastructure for certain types of workloads."

First quarter Fiscal 2021 results

  • GAAP loss from operations for the first quarter of fiscal 2021 was $55.8 million , compared to $103.8 million for the first quarter of fiscal 2020
  • Non-GAAP income from operations for the first quarter of fiscal 2021 was $17.3 million , compared to a non-GAAP loss from operations of $34.7 million for the first quarter of fiscal 2020
  • Operating cash flow for the first quarter of fiscal 2021 was $68.4 million , compared to $11.5 million for the first quarter of fiscal 2020
  • GAAP net loss per share for the first quarter of fiscal 2021 was $0.20 per share, compared to $0.38 per share for the first quarter of fiscal 2020
  • Non-GAAP net income per share for the first quarter of fiscal 2021 was $0.05 per share, compared to a non-GAAP net loss per share of $0.13 per share for the first 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. Unlike the prior comparable period in fiscal 2020, our non-GAAP financial measures now also exclude extraordinary non-cash real estate impairment charges. However, we did not have any such impairment charges in the first quarter of fiscal 2021. An explanation of these measures is also included below under the heading Non-GAAP Financial Measures.

As of April 30, 2020 , Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $518.7 million .

Recent Business and Financial Highlights

  • Annualized Recurring Revenue at the conclusion of the first quarter of fiscal 2021 was $723.4 million , representing 11% year-over-year growth
  • GAAP subscription gross margin for the quarter was 85%, up from 81% in the first quarter of fiscal 2020
  • Non-GAAP subscription gross margin for the quarter was 88%, up from 85% in the first quarter of fiscal 2020
  • Expanded our partnership with Google Cloud Platform (GCP) to integrate CDP Public Cloud with GCP and offer the joint product on GCP Marketplace
  • CDP Private Cloud will debut at an upcoming virtual event, IBM and Cloudera: The Journey to Hybrid Cloud and AI , on June 11, 2020
  • Introduced new MLOps features and extended SDX to machine learning models as part of our CDP Machine Learning public cloud service
  • Four Cloudera channel leaders recognized as CRN 2020 Women of the Channel

Business Outlook

The outlook for the second quarter of fiscal 2021, ending July 31, 2020 , is:

  • Total revenue in the range of $206 million to $209 million
  • Subscription revenue in the range of $186 million to $189 million
  • Non-GAAP operating income in the range of $18 million to $23 million
  • Non-GAAP net income per share in the range of $0.06 to $0.07 per share
  • Diluted weighted-average share count of approximately 311 million shares

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

  • Total revenue in the range of $825 million to $845 million
  • Subscription revenue in the range of $745 million to $755 million
  • Non-GAAP operating income in the range of $85 million to $95 million
  • Non-GAAP net income per share in the range of $0.26 to $0.30
  • Diluted weighted-average share count of approximately 312 million shares

The business outlook is based on the assumption that the recessionary impact of the coronavirus pandemic (COVID-19) will peak in Cloudera's second and third quarters of fiscal 2021 and moderate in the fourth quarter of our fiscal 2021.

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its first quarter fiscal 2021 results and the outlook for its second 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: 6993335

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 assumptions, goals and targets, including expectations regarding the acceptance by our enterprise customers of enterprise data cloud, the Cloudera Data Platform, expected delivery of CDP Private Cloud, our competitive position, the degree to which the existing use of our solutions encourages continued use, and our "Business Outlook" for our  second 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 income/loss from operations, non-GAAP operating margin, non-GAAP net income/loss, and historical and forward-looking 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. The definition of ARR was revised in the fourth quarter of fiscal 2020 to exclude certain items that are considered non-recurring. Additional information, including a comparison of the ARR figures under the prior and current definition, is available in the supplemental materials on Cloudera's Investor Relations website.

 

Cloudera, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)



Three Months Ended April 30,


2020



2019

Revenue:





Subscription

$

187,085



$

154,838

Services

23,375



32,630

Total revenue

210,460



187,468

Cost of revenue:(1) (2)





Subscription

28,636



29,337

Services

25,605



31,896

Total cost of revenue

54,241



61,233

Gross profit

156,219



126,235

Operating expenses:(1) (2)





Research and development

64,216



64,173

Sales and marketing

113,135



119,383

General and administrative

34,675



46,432

Total operating expenses

212,026



229,988

Loss from operations

(55,807)



(103,753)

Interest income

2,241



3,291

Other income (expense), net

(2,497)



233

Loss before provision for income taxes

(56,063)



(100,229)

Provision for income taxes

(1,951)



(2,901)

Net loss

$

(58,014)



$

(103,130)

Net loss per share, basic and diluted

$

(0.20)



$

(0.38)

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

295,293



271,352

 

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



Three Months Ended April 30,


2020


2019





Cost of revenue subscription

$

3,992


$

3,819

Cost of revenue service

3,987


4,260

Research and development

19,824


17,841

Sales and marketing

15,823


13,364

General and administrative

9,812


9,587

Total stock-based compensation expense

$

53,438


$

48,871

 

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



Three Months Ended April 30,


2020



2019






Cost of revenue subscription

$

3,079



$

2,910

Sales and marketing

16,597



17,250

Total amortization of acquired intangible assets

$

19,676



$

20,160

 

...

Cloudera, Inc.

Condensed Consolidated Balance Sheets

(in thousands)






April 30,

2020


January 31,

2020



(unaudited)




ASSETS




Current assets:




Cash and cash equivalents

$

160,925



$

107,638


Marketable securities

251,025



253,361


Accounts receivable, net

165,236



249,971