PALO ALTO, Calif., Dec. 5,
2018 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the modern
platform for machine learning and analytics optimized for the
cloud, today reported results for its third quarter of fiscal 2019,
ended October 31, 2018. Total revenue was $118.2 million, an increase of 25% as compared to
the third quarter of fiscal 2018. Subscription revenue was
$99.7 million, an increase of 28% as
compared to the third quarter of fiscal 2018.
"We are pleased with our execution in Q3 and our progress on the
strategic combination we have announced with Hortonworks.
Pre-closing merger integration planning is going well. And more
importantly, we are very encouraged by the reception that our plans
are receiving from customers, partners and the developer
community," said Tom Reilly, chief
executive officer. "Together, we will enhance our competitiveness,
accelerate our momentum in cloud innovation, and provide a
comprehensive solution-set for customers, from the Edge to AI."
GAAP loss from operations for the third quarter of fiscal 2019
was $26.4 million, compared to a GAAP
loss from operations of $56.6 million
for the third quarter of fiscal 2018. Non-GAAP loss from operations
for the third quarter of fiscal 2019 was $3.8 million, compared to a non-GAAP loss from
operations of $24.4 million in the
third quarter of fiscal 2018.
Operating cash flow for the third quarter of fiscal 2019, which
includes $6.0 million of
merger-related costs, was negative $6.8
million compared to operating cash flow of negative
$2.4 million in the third quarter of
fiscal 2018.
GAAP net loss per share for the third quarter of fiscal 2019 was
$0.17 per share, based on
weighted-average shares outstanding of 152.2 million shares,
compared to a GAAP net loss per share in the third quarter of
fiscal 2018 of $0.40 per share, based
on weighted-average shares outstanding of 138.5 million shares. See
financial statement 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 third quarter of fiscal 2019
was $0.03 per share, based on
weighted-average shares outstanding of 152.2 million shares,
compared to non-GAAP net loss per share in the third quarter of
fiscal 2018 of $0.17 per share, based
on weighted-average shares outstanding of 138.5
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 October 31, 2018, the company had total cash, cash
equivalents, marketable securities and restricted cash of
$453.3 million.
Recent Business and Financial Highlights
- Subscription revenue was up 28% year-over-year to $99.7 million
- Non-GAAP subscription gross margin for the quarter was 89%, up
from 86% in the third quarter of fiscal 2018
- Customers with annual recurring revenue greater than
$100,000 were 601, up 33 for the
quarter compared to the second quarter quarter of fiscal 2019
- Dollar-based net expansion rate was 127% for the quarter
- Non-GAAP operating loss improved more than 22 percentage points
in the third quarter compared to the third quarter of fiscal
2018
- Previewed Cloudera Machine Learning, a new, cloud-native
machine learning platform powered by Kubernetes to accelerate the
industrialization of AI
- Announced availability of Cloudera's most powerful and
comprehensive platform to date – Cloudera Enterprise 6.0
Business Outlook
Note that guidance is provided for Cloudera on a standalone
basis. An updated outlook for the combined company will be provided
after closing of the merger and completion of Cloudera's fiscal
2019 fourth quarter. Accordingly, the outlook for the fourth
quarter of fiscal 2019, ending January 31, 2019, is:
- Total revenue in the range of $119
million to $122 million,
representing 17% year-over-year growth
- Subscription revenue in the range of $101 million to $103
million, representing 21% year-over-year growth
- Non-GAAP net loss per share in the range of $0.12 to $0.10 per
share
- Weighted-average shares outstanding of approximately 155
million shares
The outlook for fiscal 2019, ending January 31, 2019, is:
- Total revenue in the range of $450
million to $453 million,
representing approximately 23% year-over-year growth
- Subscription revenue in the range of $380 million to $382
million, representing approximately 27% year-over-year
growth
- Operating cash flow in the range of negative $25 million to $20
million
- Non-GAAP net loss per share in the range of $0.40 to $0.38 per
share
- Weighted-average shares outstanding of approximately 151
million shares
Note that operating cash flow projections for fiscal 2019
include approximately $12 million of
merger execution and planning expenses in fiscal third and fourth
quarters. There are or may be additional costs incurred as early as
January 2019, upon closing of the
merger, which have not been considered in forecasting operating
cash flow for fiscal 2019.
Conference Call and Webcast Information
Cloudera is hosting a conference call for analysts and investors
to discuss its third quarter fiscal 2019 results and the outlook
for its fourth quarter of fiscal 2019 and full year fiscal 2019 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: 8079743
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. 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.
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 anticipated benefits from the merger with
Hortonworks and our "Business Outlook" for our fourth quarter of
fiscal 2019 and our full year fiscal 2019 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 Quarterly Report
on Form 10-Q filed with the Securities and Exchange Commission
(SEC), and in our other SEC filings, including in a registration
statement on Form S-4 containing a joint proxy statement/prospectus
of Cloudera and Hortonworks. 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 non-GAAP subscription gross
margins, non-GAAP loss from operations, non-GAAP operating margin,
non-GAAP net loss, and historical and forward-looking non-GAAP net
loss per share. These non-GAAP financial measures exclude
stock-based compensation, acquisition- and disposition-related
expenses (if any), and amortization of acquired intangible assets
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 impact of anti-dilutive restricted stock units
and stock 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.
No Offer or Solicitation
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval with respect to the proposed merger or
otherwise. No offer of securities shall be made except by means of
a prospectus meeting the requirements of Section 10 of the
Securities Act of 1933, as amended.
Additional Information and Where to Find It
In connection with the proposed merger between Cloudera and
Hortonworks, Cloudera has filed a registration statement on Form
S-4 with the Securities and Exchange Commission (SEC) (Registration
Statement No. 333-228155), and this registration statement, as
amended, was declared effective by the SEC on November 20, 2018. This registration statement
contains a joint proxy statement/prospectus and relevant materials
concerning the proposed merger. Additionally, Cloudera and
Hortonworks intend to file with the SEC other materials in
connection with the proposed merger. BEFORE MAKING ANY VOTING
DECISION, CLOUDERA'S AND HORTONWORKS' RESPECTIVE STOCKHOLDERS ARE
URGED TO READ THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS IN
ITS ENTIRETY AND ANY OTHER DOCUMENTS FILED BY EACH OF CLOUDERA AND
HORTONWORKS WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR
INCORPORATED BY REFERENCE THEREIN BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE
PARTIES TO THE PROPOSED TRANSACTION. Investors and security holders
will be able to obtain a free copy of the definitive joint proxy
statement/prospectus and other documents containing important
information about Cloudera and Hortonworks, once such documents are
filed with the SEC, through the website maintained by the SEC at
www.sec.gov. Cloudera and Hortonworks make available free of charge
at www.cloudera.com and www.hortonworks.com, respectively (in the
"Investor Relations" section), copies of materials they file with,
or furnish to, the SEC. The contents of the websites referenced
above are not deemed to be incorporated by reference into the
registration statement or the definitive joint proxy
statement/prospectus.
Participants in the Solicitation
This press release does not constitute a solicitation of proxy, an
offer to purchase or a solicitation of an offer to sell any
securities. Cloudera, Hortonworks and their respective directors,
executive officers and certain employees may be deemed to be
participants in the solicitation of proxies from the stockholders
of Cloudera and Hortonworks in connection with the proposed merger.
Information regarding the special interests of these directors and
executive officers in the proposed merger is included in the
definitive joint proxy statement/prospectus. Security holders may
also obtain information regarding the names, affiliations and
interests of Cloudera's directors and executive officers in
Cloudera's Annual Report on Form 10-K for the fiscal year ended
January 31, 2018, which was filed
with the SEC on April 4, 2018, and
its definitive proxy statement for the 2018 annual meeting of
stockholders, which was filed with the SEC on May 16, 2018. Security holders may obtain
information regarding the names, affiliations and interests of
Hortonworks' directors and executive officers in Hortonworks'
Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed with the SEC
on March 15, 2018, and its definitive
proxy statement for the 2018 annual meeting of stockholders, which
was filed with the SEC on April 24,
2018. To the extent the holdings of Cloudera securities by
Cloudera's directors and executive officers or the holdings of
Hortonworks securities by Hortonworks' directors and executive
officers have changed since the amounts set forth in Cloudera's or
Hortonworks' respective proxy statement for its 2018 annual meeting
of stockholders, such changes have been or will be reflected on
Statements of Change in Ownership on Form 4 filed with the SEC.
Additional information regarding the interests of such individuals
in the proposed merger are included in the definitive joint proxy
statement/prospectus relating to the proposed merger. These
documents (when available) may be obtained free of charge from the
SEC's website at www.sec.gov, Cloudera's website at
www.cloudera.com and Hortonworks' website at www.hortonworks.com.
The contents of the websites referenced above are not deemed to be
incorporated by reference into the registration statement or the
joint proxy statement/prospectus.
Cloudera,
Inc.
|
Condensed
Consolidated Statements of Operations
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue:
|
|
|
|
|
|
|
|
Subscription
|
$
|
99,698
|
|
|
$
|
78,105
|
|
|
$
|
278,720
|
|
|
$
|
216,762
|
|
Services
|
18,485
|
|
|
16,464
|
|
|
52,508
|
|
|
47,231
|
|
Total
revenue
|
118,183
|
|
|
94,569
|
|
|
331,228
|
|
|
263,993
|
|
Cost of
revenue:(1) (2)
|
|
|
|
|
|
|
|
Subscription
|
13,996
|
|
|
14,486
|
|
|
44,764
|
|
|
56,173
|
|
Services
|
15,980
|
|
|
18,640
|
|
|
50,695
|
|
|
69,035
|
|
Total cost of
revenue
|
29,976
|
|
|
33,126
|
|
|
95,459
|
|
|
125,208
|
|
Gross
profit
|
88,207
|
|
|
61,443
|
|
|
235,769
|
|
|
138,785
|
|
Operating
expenses:(1) (2)
|
|
|
|
|
|
|
|
Research and
development
|
37,563
|
|
|
38,095
|
|
|
121,027
|
|
|
176,770
|
|
Sales and
marketing
|
54,927
|
|
|
64,061
|
|
|
169,870
|
|
|
236,639
|
|
General and
administrative
|
22,067
|
|
|
15,877
|
|
|
55,493
|
|
|
69,991
|
|
Total operating
expenses
|
114,557
|
|
|
118,033
|
|
|
346,390
|
|
|
483,400
|
|
Loss from
operations
|
(26,350)
|
|
|
(56,590)
|
|
|
(110,621)
|
|
|
(344,615)
|
|
Interest income,
net
|
2,440
|
|
|
1,501
|
|
|
6,420
|
|
|
3,590
|
|
Other income
(expense), net
|
(1,126)
|
|
|
(490)
|
|
|
(3,154)
|
|
|
349
|
|
Net loss before
benefit from (provision for) income taxes
|
(25,036)
|
|
|
(55,579)
|
|
|
(107,355)
|
|
|
(340,676)
|
|
Benefit from
(provision for) income taxes
|
(1,498)
|
|
|
241
|
|
|
(3,595)
|
|
|
(1,210)
|
|
Net loss
|
$
|
(26,534)
|
|
|
$
|
(55,338)
|
|
|
$
|
(110,950)
|
|
|
$
|
(341,886)
|
|
Net loss per share,
basic and diluted
|
$
|
(0.17)
|
|
|
$
|
(0.40)
|
|
|
$
|
(0.74)
|
|
|
$
|
(3.27)
|
|
Weighted-average
shares used in computing net loss per share, basic and
diluted
|
152,245
|
|
|
138,506
|
|
|
149,507
|
|
|
104,551
|
|
|
(1)
Amounts include stock-based compensation
expense as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cost of revenue –
subscription
|
$
|
2,016
|
|
|
$
|
2,750
|
|
|
$
|
7,060
|
|
|
$
|
22,143
|
|
Cost of revenue –
services
|
2,290
|
|
|
4,187
|
|
|
7,540
|
|
|
28,414
|
|
Research and
development
|
7,805
|
|
|
9,110
|
|
|
26,002
|
|
|
90,139
|
|
Sales and
marketing
|
5,504
|
|
|
10,070
|
|
|
14,281
|
|
|
82,748
|
|
General and
administrative
|
4,275
|
|
|
5,030
|
|
|
12,848
|
|
|
38,236
|
|
Total stock‑based
compensation expense
|
$
|
21,890
|
|
|
$
|
31,147
|
|
|
$
|
67,731
|
|
|
$
|
261,680
|
|
|
(2)
Amounts include amortization of
acquired intangible assets as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cost of revenue –
subscription
|
$
|
622
|
|
|
$
|
584
|
|
|
$
|
1,866
|
|
|
$
|
1,608
|
|
Sales and
marketing
|
35
|
|
|
454
|
|
|
105
|
|
|
1,315
|
|
Total amortization of
acquired intangible assets
|
$
|
657
|
|
|
$
|
1,038
|
|
|
$
|
1,971
|
|
|
$
|
2,923
|
|
Cloudera,
Inc.
|
Condensed
Consolidated Statements of Operations
|
(as a percentage
of total revenues)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Subscription
|
84
|
%
|
|
83
|
%
|
|
84
|
%
|
|
82
|
%
|
Services
|
16
|
|
|
17
|
|
|
16
|
|
|
18
|
|
Total
revenue
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
Cost of
revenue:(1) (2)
|
|
|
|
|
|
|
|
Subscription
|
12
|
|
|
15
|
|
|
14
|
|
|
21
|
|
Services
|
13
|
|
|
20
|
|
|
15
|
|
|
26
|
|
Total cost of
revenue
|
25
|
|
|
35
|
|
|
29
|
|
|
47
|
|
Gross
profit
|
75
|
|
|
65
|
|
|
71
|
|
|
53
|
|
Operating
expenses:(1) (2)
|
|
|
|
|
|
|
|
Research and
development
|
32
|
|
|
40
|
|
|
36
|
|
|
67
|
|
Sales and
marketing
|
46
|
|
|
68
|
|
|
51
|
|
|
90
|
|
General and
administrative
|
19
|
|
|
17
|
|
|
17
|
|
|
26
|
|
Total operating
expenses
|
97
|
|
|
125
|
|
|
104
|
|
|
183
|
|
Loss from
operations
|
(22)
|
|
|
(60)
|
|
|
(33)
|
|
|
(130)
|
|
Interest income,
net
|
2
|
|
|
2
|
|
|
2
|
|
|
1
|
|
Other income
(expense), net
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
—
|
|
Net loss before
benefit from (provision for) income taxes
|
(21)
|
|
|
(59)
|
|
|
(32)
|
|
|
(129)
|
|
Benefit from
(provision for) income taxes
|
(1)
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
Net loss
|
(22)
|
%
|
|
(59)
|
%
|
|
(33)
|
%
|
|
(130)
|
%
|
|
(1)
Amounts include stock-based compensation
expense as a percentage of total revenue as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cost of revenue –
subscription
|
2
|
%
|
|
3
|
%
|
|
2
|
%
|
|
8
|
%
|
Cost of revenue –
services
|
2
|
|
|
4
|
|
|
2
|
|
|
11
|
|
Research and
development
|
7
|
|
|
10
|
|
|
8
|
|
|
34
|
|
Sales and
marketing
|
5
|
|
|
11
|
|
|
4
|
|
|
31
|
|
General and
administrative
|
4
|
|
|
5
|
|
|
4
|
|
|
15
|
|
Total stock-based
compensation expense
|
20
|
%
|
|
33
|
%
|
|
20
|
%
|
|
99
|
%
|
|
(2)
Amounts include amortization of acquired
intangible assets as a percentage of total revenue as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Cost of revenue –
subscription
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
Sales and
marketing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total amortization of
acquired intangible assets
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
Cloudera,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
October 31,
2018
|
|
January 31,
2018
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
|
64,632
|
|
|
$
|
43,247
|
|
Short-term marketable
securities
|
325,053
|
|
|
327,842
|
|
Accounts receivable,
net
|
92,586
|
|
|
130,579
|
|
Prepaid expenses and
other current assets
|
25,176
|
|
|
31,470
|
|
Total current
assets
|
507,447
|
|
|
533,138
|
|
Property and
equipment, net
|
21,207
|
|
|
17,600
|
|
Marketable
securities, noncurrent
|
60,237
|
|
|
71,580
|
|
Intangible assets,
net
|
3,884
|
|
|
5,855
|
|
Goodwill
|
33,621
|
|
|
33,621
|
|
Restricted
cash
|
3,352
|
|
|
18,052
|
|
Other
assets
|
6,767
|
|
|
9,312
|
|
TOTAL
ASSETS
|
$
|
636,515
|
|
|
$
|
689,158
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
payable
|
$
|
2,085
|
|
|
$
|
2,722
|
|
Accrued
compensation
|
36,834
|
|
|
41,393
|
|
Other accrued
liabilities
|
13,376
|
|
|
13,454
|
|
Deferred revenue,
current portion
|
242,665
|
|
|
257,141
|
|
Total current
liabilities
|
294,960
|
|
|
314,710
|
|
Deferred revenue,
less current portion
|
34,654
|
|
|
34,870
|
|
Other
liabilities
|
20,336
|
|
|
16,601
|
|
TOTAL
LIABILITIES
|
349,950
|
|
|
366,181
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
Common
stock
|
8
|
|
|
7
|
|
Additional paid-in
capital
|
1,460,370
|
|
|
1,385,592
|
|
Accumulated other
comprehensive loss
|
(1,073)
|
|
|
(832)
|
|
Accumulated
deficit
|
(1,172,740)
|
|
|
(1,061,790)
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
286,565
|
|
|
322,977
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
636,515
|
|
|
$
|
689,158
|
|
Cloudera,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net loss
|
$
|
(26,534)
|
|
|
$
|
(55,338)
|
|
|
$
|
(110,950)
|
|
|
$
|
(341,886)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,691
|
|
|
2,701
|
|
|
7,759
|
|
|
9,695
|
|
Stock-based
compensation
|
21,890
|
|
|
31,147
|
|
|
67,731
|
|
|
261,680
|
|
Release of deferred
tax valuation allowance
|
—
|
|
|
(806)
|
|
|
—
|
|
|
(806)
|
|
Accretion and
amortization of marketable securities
|
(466)
|
|
|
243
|
|
|
(661)
|
|
|
657
|
|
Gain on disposal of
fixed assets
|
(2)
|
|
|
(111)
|
|
|
(22)
|
|
|
(111)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
3,944
|
|
|
18,792
|
|
|
38,310
|
|
|
35,536
|
|
Prepaid expenses and
other assets
|
(3,949)
|
|
|
(6,098)
|
|
|
8,348
|
|
|
(5,459)
|
|
Accounts
payable
|
(22)
|
|
|
(4,000)
|
|
|
561
|
|
|
(2,326)
|
|
Accrued
compensation
|
2,403
|
|
|
3,752
|
|
|
(7,034)
|
|
|
(1,231)
|
|
Accrued expenses and
other liabilities
|
103
|
|
|
6,472
|
|
|
4,102
|
|
|
9,442
|
|
Deferred
revenue
|
(6,842)
|
|
|
830
|
|
|
(14,118)
|
|
|
14,527
|
|
Net cash used
in operating activities
|
(6,784)
|
|
|
(2,416)
|
|
|
(5,974)
|
|
|
(20,282)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Purchases of
marketable securities and other investments
|
(116,538)
|
|
|
(127,003)
|
|
|
(368,914)
|
|
|
(514,157)
|
|
Sales of marketable
securities and other investments
|
3,715
|
|
|
14,238
|
|
|
36,009
|
|
|
57,436
|
|
Maturities of
marketable securities and other investments
|
115,300
|
|
|
116,128
|
|
|
346,203
|
|
|
233,732
|
|
Cash used in business
combinations, net of cash acquired
|
—
|
|
|
(1,937)
|
|
|
—
|
|
|
(1,937)
|
|
Capital
expenditures
|
(1,630)
|
|
|
(7,034)
|
|
|
(9,320)
|
|
|
(9,005)
|
|
Proceeds from sale of
equipment
|
2
|
|
|
145
|
|
|
29
|
|
|
145
|
|
Net cash
provided by (used in) investing activities
|
849
|
|
|
(5,463)
|
|
|
4,007
|
|
|
(233,786)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Net proceeds from
issuance of common stock in initial public offering
|
—
|
|
|
(264)
|
|
|
—
|
|
|
237,422
|
|
Net proceeds from
issuance of common stock in follow-on offering
|
—
|
|
|
46,803
|
|
|
—
|
|
|
46,803
|
|
Proceeds from
employee stock plans
|
7,430
|
|
|
5,289
|
|
|
18,760
|
|
|
11,221
|
|
Taxes paid related to
net share settlement of restricted stock units
|
(4,094)
|
|
|
(50,503)
|
|
|
(8,482)
|
|
|
(50,503)
|
|
Net cash
provided by financing activities
|
3,336
|
|
|
1,325
|
|
|
10,278
|
|
|
244,943
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(411)
|
|
|
417
|
|
|
(1,626)
|
|
|
340
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
(3,010)
|
|
|
(6,137)
|
|
|
6,685
|
|
|
(8,785)
|
|
Cash, cash
equivalents and restricted cash — Beginning of period
|
70,994
|
|
|
86,984
|
|
|
61,299
|
|
|
89,632
|
|
Cash, cash
equivalents and restricted cash — End of period
|
$
|
67,984
|
|
|
$
|
80,847
|
|
|
$
|
67,984
|
|
|
$
|
80,847
|
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
$
|
1,171
|
|
|
$
|
488
|
|
|
$
|
3,069
|
|
|
$
|
1,840
|
|
SUPPLEMENTAL
DISCLOSURES OF NON-CASH INVESTING AND FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Purchases of property
and equipment in other accrued liabilities
|
$
|
202
|
|
|
$
|
261
|
|
|
$
|
202
|
|
|
$
|
261
|
|
Fair value of common
stock issued as consideration for business combinations
|
$
|
—
|
|
|
$
|
2,081
|
|
|
$
|
—
|
|
|
$
|
2,081
|
|
Offering costs in
accounts payable and other accrued liabilities
|
$
|
—
|
|
|
$
|
858
|
|
|
$
|
—
|
|
|
$
|
858
|
|
Conversion of
redeemable convertible preferred stock to common stock
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
657,687
|
|
Cloudera,
Inc.
|
Three Months Ended
October 31, 2018
|
GAAP Results
Reconciled to non-GAAP Results
|
(in thousands,
except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Stock-based
compensation
expense
|
|
Amortization
of
acquired
intangible
assets
|
|
Non-GAAP
|
Cost of revenue-
Subscription
|
$
|
13,996
|
|
|
$
|
(2,016)
|
|
|
$
|
(622)
|
|
|
$
|
11,358
|
|
Subscription gross
margin
|
86
|
%
|
|
2
|
%
|
|
1
|
%
|
|
89
|
%
|
Cost of revenue-
Services
|
15,980
|
|
|
(2,290)
|
|
|
—
|
|
|
13,690
|
|
Services gross
margin
|
14
|
%
|
|
12
|
%
|
|
—
|
%
|
|
26
|
%
|
Gross
profit
|
88,207
|
|
|
4,306
|
|
|
622
|
|
|
93,135
|
|
Total gross
margin
|
75
|
%
|
|
4
|
%
|
|
1
|
%
|
|
79
|
%
|
Research and
development
|
37,563
|
|
|
(7,805)
|
|
|
—
|
|
|
29,758
|
|
Sales and
marketing
|
54,927
|
|
|
(5,504)
|
|
|
(35)
|
|
|
49,388
|
|
General and
administrative
|
22,067
|
|
|
(4,275)
|
|
|
—
|
|
|
17,792
|
|
Loss from
operations
|
(26,350)
|
|
|
21,890
|
|
|
657
|
|
|
(3,803)
|
|
Operating
margin
|
(22)
|
%
|
|
20
|
%
|
|
1
|
%
|
|
(3)
|
%
|
Net loss
|
(26,534)
|
|
|
21,890
|
|
|
657
|
|
|
(3,987)
|
|
Net loss per share,
basic and diluted
|
$
|
(0.17)
|
|
|
$
|
0.14
|
|
|
$
|
—
|
|
|
$
|
(0.03)
|
|
Cloudera,
Inc.
|
Three Months Ended
October 31, 2017
|
GAAP Results
Reconciled to non-GAAP Results
|
(in thousands,
except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
Stock-based
compensation
expense
|
|
Amortization
of acquired
intangible
assets
|
|
Non-GAAP
|
Cost of revenue-
Subscription
|
$
|
14,486
|
|
|
$
|
(2,750)
|
|
|
$
|
(584)
|
|
|
$
|
11,152
|
|
Subscription gross
margin
|
81
|
%
|
|
4
|
%
|
|
1
|
%
|
|
86
|
%
|
Cost of revenue-
Services
|
18,640
|
|
|
(4,187)
|
|
|
—
|
|
|
14,453
|
|
Services gross
margin
|
(13)
|
%
|
|
25
|
%
|
|
—
|
%
|
|
12
|
%
|
Gross
profit
|
61,443
|
|
|
6,937
|
|
|
584
|
|
|
68,964
|
|
Total gross
margin
|
65
|
%
|
|
7
|
%
|
|
1
|
%
|
|
73
|
%
|
Research and
development
|
38,095
|
|
|
(9,110)
|
|
|
—
|
|
|
28,985
|
|
Sales and
marketing
|
64,061
|
|
|
(10,070)
|
|
|
(454)
|
|
|
53,537
|
|
General and
administrative
|
15,877
|
|
|
(5,030)
|
|
|
—
|
|
|
10,847
|
|
Loss from
operations
|
(56,590)
|
|
|
31,147
|
|
|
1,038
|
|
|
(24,405)
|
|
Operating
margin
|
(60)
|
%
|
|
33
|
%
|
|
1
|
%
|
|
(26)
|
%
|
Net loss
|
(55,338)
|
|
|
31,147
|
|
|
1,038
|
|
|
(23,153)
|
|
Net loss per share,
basic and diluted
|
$
|
(0.40)
|
|
|
$
|
0.22
|
|
|
$
|
0.01
|
|
|
$
|
(0.17)
|
|
GAAP
weighted-average shares reconciled to non-GAAP weighted-average
shares
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months Ended
October 31,
|
|
Nine Months Ended
October 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
GAAP weighted-average
shares, basic and diluted
|
152,245
|
|
|
138,506
|
|
|
149,507
|
|
|
104,551
|
|
Assumed preferred
stock conversion
|
—
|
|
|
—
|
|
|
—
|
|
|
24,969
|
|
Assumed IPO
issuance
|
—
|
|
|
—
|
|
|
—
|
|
|
316
|
|
Non-GAAP
weighted-average shares, diluted
|
152,245
|
|
|
138,506
|
|
|
149,507
|
|
|
129,836
|
|
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 Cloudera excludes from its non-GAAP financial measures,
Cloudera believes 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.
- Assumed preferred stock conversion. For periods prior to
the closing of our initial public offering (IPO) on May 3, 2017, we give effect to the automatic
conversion of all outstanding shares of preferred stock to common
stock, as if such conversion had occurred at the beginning of the
period, in our calculations of non-GAAP weighted-average shares,
diluted, and non-GAAP net loss per share, diluted. The inclusion of
these shares 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.
- Assumed IPO issuance. We include the common shares
issued in our IPO, on a weighted basis, as if the shares were
issued on the date of our effectiveness. Our IPO was effective in
the first quarter of fiscal 2018 and closed in the second quarter
of fiscal 2018.
Cloudera,
Inc.
|
Reconciliation of
non-GAAP Financial Guidance
|
(unaudited)
|
|
|
Fiscal
2019
|
(in
millions)
|
Q4
|
|
FY
|
GAAP net
loss
|
($45) -
($42)
|
|
|
($155) -
($152)
|
|
Stock-based
compensation expense (1)
|
25
|
|
|
92
|
|
Amortization
of acquired intangible assets
|
1
|
|
|
3
|
|
Non-GAAP net
loss
|
($19) -
($16)
|
|
|
($60) -
($57)
|
|
|
|
(1)
Stock-based compensation expense is
impacted by variables such as stock price and employee behavior,
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.
|
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SOURCE Cloudera, Inc.