- 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., September 7, 2017 —Cloudera, Inc., (NYSE: CLDR), the modern platform for machine learning and analytics optimized for the cloud, today reported results for its second quarter fiscal 2018, ended July 31, 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,” said Tom 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 million for 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 million in the year-ago period.
Operating cash flow for the quarter was negative $22.8 million compared to operating cash flow of negative $28.5 million in the second quarter fiscal 2017.
GAAP net loss per share for the second quarter fiscal 2018 was $0.48 per 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 $1.07 per 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 $0.17 per 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 $0.29 per share, based on non-GAAP weighted-average shares outstanding of 111.2 million 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 of July 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
The outlook for the third quarter fiscal 2018, ending October 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 $0.23 per share
- Non-GAAP weighted-average shares outstanding of approximately 138 million shares
The outlook for fiscal 2018, ending January 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 $0.93 per 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 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: +1-833-231-7247
- Participant International Number: +1-647-689-4091
- Conference ID: 67627548
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 cloudera.com.
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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.
Global 8000 Customer List
As previously disclosed in our final prospectus dated April 27, 2017 and filed with the Securities and Exchange Commission on April 28, 2017 we 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.
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 June 9, 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.