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| 8-K - 8-K - Cloudera, Inc. | q2-18cldr8xk.htm |
Cloudera Reports Second Quarter Fiscal Year 2018 Financial Results
• | 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 |
Business Outlook
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 |
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
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.
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.
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 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.
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue: | |||||||||||||||
Subscription | $ | 73,986 | $ | 50,688 | $ | 138,657 | $ | 91,360 | |||||||
Services | 15,842 | 13,768 | 30,767 | 29,581 | |||||||||||
Total revenue | 89,828 | 64,456 | 169,424 | 120,941 | |||||||||||
Cost of revenue:(1) (2) | |||||||||||||||
Subscription | 15,215 | 9,706 | 41,687 | 19,057 | |||||||||||
Services | 16,755 | 11,633 | 50,395 | 23,317 | |||||||||||
Total cost of revenue | 31,970 | 21,339 | 92,082 | 42,374 | |||||||||||
Gross profit | 57,858 | 43,117 | 77,342 | 78,567 | |||||||||||
Operating expenses:(1) (2) | |||||||||||||||
Research and development | 42,844 | 26,635 | 138,675 | 51,150 | |||||||||||
Sales and marketing | 62,135 | 46,902 | 172,578 | 93,044 | |||||||||||
General and administrative | 18,564 | 8,367 | 54,114 | 16,676 | |||||||||||
Total operating expenses | 123,543 | 81,904 | 365,367 | 160,870 | |||||||||||
Loss from operations | (65,685 | ) | (38,787 | ) | (288,025 | ) | (82,303 | ) | |||||||
Interest income, net | 1,440 | 708 | 2,089 | 1,448 | |||||||||||
Other income (expense), net | 817 | (178 | ) | 839 | (15 | ) | |||||||||
Net loss before provision for income taxes | (63,428 | ) | (38,257 | ) | (285,097 | ) | (80,870 | ) | |||||||
Provision for income taxes | (801 | ) | (470 | ) | (1,451 | ) | (970 | ) | |||||||
Net loss | $ | (64,229 | ) | $ | (38,727 | ) | $ | (286,548 | ) | $ | (81,840 | ) | |||
Net loss per share, basic and diluted | $ | (0.48 | ) | $ | (1.07 | ) | $ | (3.28 | ) | $ | (2.27 | ) | |||
Weighted-average shares used in computing net loss per share, basic and diluted | 134,506 | 36,257 | 87,293 | 36,090 | |||||||||||
___________
(1) | Amounts include stock‑based compensation expense as follows (in thousands): |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue – subscription | $ | 3,693 | $ | 374 | $ | 19,393 | $ | 708 | |||||||
Cost of revenue – services | 3,890 | 457 | 24,227 | 931 | |||||||||||
Research and development | 13,128 | 1,458 | 81,029 | 3,013 | |||||||||||
Sales and marketing | 12,137 | 1,474 | 72,678 | 3,033 | |||||||||||
General and administrative | 6,603 | 1,815 | 33,206 | 3,556 | |||||||||||
Total stock‑based compensation expense | $ | 39,451 | $ | 5,578 | $ | 230,533 | $ | 11,241 | |||||||
(2) | Amounts include amortization of acquired intangible assets as follows (in thousands): |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue – subscription | $ | 510 | $ | 514 | $ | 1,024 | $ | 969 | |||||||
Sales and marketing | 431 | 431 | 861 | 861 | |||||||||||
Total amortization of acquired intangible assets | $ | 941 | $ | 945 | $ | 1,885 | $ | 1,830 | |||||||
Cloudera, Inc.
Condensed Consolidated Statements of Operations
(as a percentage of total revenues)
(unaudited)
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Revenue: | |||||||||||
Subscription | 82 | % | 79 | % | 82 | % | 76 | % | |||
Services | 18 | 21 | 18 | 24 | |||||||
Total revenue | 100 | 100 | 100 | 100 | |||||||
Cost of revenue:(1) (2) | |||||||||||
Subscription | 17 | 15 | 24 | 16 | |||||||
Services | 19 | 18 | 30 | 19 | |||||||
Total cost of revenue | 36 | 33 | 54 | 35 | |||||||
Gross margin | 64 | 67 | 46 | 65 | |||||||
Operating expenses:(1) (2) (3) | |||||||||||
Research and development | 48 | 41 | 82 | 42 | |||||||
Sales and marketing | 69 | 73 | 102 | 77 | |||||||
General and administrative | 20 | 13 | 32 | 14 | |||||||
Total operating expenses | 137 | 127 | 216 | 133 | |||||||
Loss from operations | (73 | ) | (60 | ) | (170 | ) | (68 | ) | |||
Interest income, net | 1 | 1 | 1 | 1 | |||||||
Other income (expense), net | 1 | — | 1 | — | |||||||
Net loss before provision for income taxes | (71 | ) | (59 | ) | (168 | ) | (67 | ) | |||
Provision for income taxes | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||
Net loss | (72) | % | (60) | % | (169) | % | (68) | % | |||
___________
(1) | Amounts include stock‑based compensation expense as a percentage of total revenue as follows: |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Cost of revenue – subscription | 4 | % | 1 | % | 11 | % | 1 | % | |||
Cost of revenue – services | 4 | 1 | 14 | 1 | |||||||
Research and development | 15 | 2 | 48 | 2 | |||||||
Sales and marketing | 14 | 2 | 43 | 2 | |||||||
General and administrative | 7 | 3 | 20 | 3 | |||||||
Total stock-based compensation expense | 44 | % | 9 | % | 136 | % | 9 | % | |||
(2) Amounts include amortization of acquired intangible assets as a percentage of total revenue as follows:
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
Cost of revenue – subscription | 1 | % | 1 | % | 1 | % | 1 | % | |||
Sales and marketing | — | — | — | 1 | |||||||
Total amortization of acquired intangible assets | 1 | % | 1 | % | 1 | % | 2 | % | |||
Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
July 31, 2017 | January 31, 2017 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 68,936 | $ | 74,186 | |||
Short-term marketable securities | 325,744 | 160,770 | |||||
Accounts receivable, net | 84,805 | 101,549 | |||||
Prepaid expenses and other current assets | 17,509 | 13,197 | |||||
Total current assets | 496,994 | 349,702 | |||||
Property and equipment, net | 13,027 | 13,104 | |||||
Marketable securities, noncurrent | 81,072 | 20,710 | |||||
Intangible assets, net | 5,166 | 7,051 | |||||
Goodwill | 31,516 | 31,516 | |||||
Restricted cash | 18,048 | 15,446 | |||||
Other assets | 3,994 | 5,015 | |||||
TOTAL ASSETS | $ | 649,817 | $ | 442,544 | |||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 6,326 | $ | 3,550 | |||
Accrued compensation | 32,254 | 33,376 | |||||
Other accrued liabilities | 15,670 | 9,918 | |||||
Deferred revenue, current portion | 194,252 | 192,242 | |||||
Total current liabilities | 248,502 | 239,086 | |||||
Deferred revenue, less current portion | 36,869 | 25,182 | |||||
Other liabilities | 9,058 | 4,345 | |||||
TOTAL LIABILITIES | 294,429 | 268,613 | |||||
Redeemable convertible preferred stock | — | 657,687 | |||||
STOCKHOLDERS’ EQUITY (DEFICIT): | |||||||
Common stock | 7 | 2 | |||||
Additional paid-in capital | 1,318,447 | 192,795 | |||||
Accumulated other comprehensive loss | (521 | ) | (556 | ) | |||
Accumulated deficit | (962,545 | ) | (675,997 | ) | |||
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) | 355,388 | (483,756 | ) | ||||
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 649,817 | $ | 442,544 | |||
Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net loss | $ | (64,229 | ) | $ | (38,727 | ) | $ | (286,548 | ) | $ | (81,840 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Depreciation and amortization | 3,352 | 2,548 | 6,994 | 4,953 | |||||||||||
Stock-based compensation | 39,451 | 5,578 | 230,533 | 11,241 | |||||||||||
Accretion and amortization of marketable securities | (128 | ) | 1,184 | 414 | 1,966 | ||||||||||
Changes in assets and liabilities: | |||||||||||||||
Accounts receivable | (31,783 | ) | (11,852 | ) | 16,744 | 4,011 | |||||||||
Prepaid expenses and other assets | (740 | ) | (2,103 | ) | 639 | (784 | ) | ||||||||
Accounts payable | 3,595 | 2,844 | 1,674 | 1,872 | |||||||||||
Accrued compensation | 7,684 | 6,309 | (4,983 | ) | (3,128 | ) | |||||||||
Accrued expenses and other liabilities | 1,828 | 151 | 2,970 | 1,006 | |||||||||||
Deferred revenue | 18,125 | 5,523 | 13,697 | 8,604 | |||||||||||
Net cash used in operating activities | (22,845 | ) | (28,545 | ) | (17,866 | ) | (52,099 | ) | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Purchases of marketable securities | (276,807 | ) | (50,365 | ) | (387,154 | ) | (90,409 | ) | |||||||
Sales of marketable securities | 11,523 | 14,931 | 43,198 | 34,372 | |||||||||||
Maturities of marketable securities | 66,184 | 65,280 | 117,604 | 129,945 | |||||||||||
Cash used in business combinations, net of cash acquired | — | — | — | (2,700 | ) | ||||||||||
Capital expenditures | (1,796 | ) | (986 | ) | (1,971 | ) | (6,135 | ) | |||||||
Net cash provided by (used in) investing activities | (200,896 | ) | 28,860 | (228,323 | ) | 65,073 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Net proceeds from issuance of common stock in initial public offering | 239,333 | — | 237,686 | — | |||||||||||
Proceeds from employee stock plans | 4,450 | 804 | 5,932 | 1,633 | |||||||||||
Net cash provided by financing activities | 243,783 | 804 | 243,618 | 1,633 | |||||||||||
Effect of exchange rate changes | (78 | ) | (204 | ) | (77 | ) | 34 | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 19,964 | 915 | (2,648 | ) | 14,641 | ||||||||||
Cash, cash equivalents and restricted cash — Beginning of period | 67,020 | 49,720 | 89,632 | 35,994 | |||||||||||
Cash, cash equivalents and restricted cash — End of period | $ | 86,984 | $ | 50,635 | $ | 86,984 | $ | 50,635 | |||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||||||
Cash paid for income taxes | $ | 723 | $ | 257 | $ | 1,352 | $ | 654 | |||||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||||
Purchases of property and equipment in other accrued liabilities | $ | 3,054 | $ | 570 | $ | 3,054 | $ | 570 | |||||||
Deferred offering costs in accounts payable and other accrued liabilities | $ | 264 | $ | — | $ | 264 | $ | — | |||||||
Conversion of redeemable convertible preferred stock to common stock | $ | 657,687 | $ | — | $ | 657,687 | $ | — | |||||||
Cloudera, Inc.
Three Months Ended July 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 weighted-average shares outstanding | Non-GAAP | |||||||||||||||
Cost of revenue- Subscription | $ | 15,215 | $ | (3,693 | ) | $ | (510 | ) | $ | — | $ | 11,012 | |||||||
Subscription gross margin | 79 | % | 5 | % | 1 | % | — | % | 85 | % | |||||||||
Cost of revenue- Services | 16,755 | (3,890 | ) | — | — | 12,865 | |||||||||||||
Services gross margin | (6 | )% | 25 | % | — | % | — | % | 19 | % | |||||||||
Gross profit | 57,858 | 7,583 | 510 | — | 65,951 | ||||||||||||||
Total gross margin | 64 | % | 8 | % | 1 | % | — | % | 73 | % | |||||||||
Research and development | 42,844 | (13,128 | ) | — | — | 29,716 | |||||||||||||
Sales and marketing | 62,135 | (12,137 | ) | (431 | ) | — | 49,567 | ||||||||||||
General and administrative | 18,564 | (6,603 | ) | — | — | 11,961 | |||||||||||||
Loss from operations | (65,685 | ) | 39,451 | 941 | — | (25,293 | ) | ||||||||||||
Operating margin | (73 | )% | 44 | % | 1 | % | — | % | (28 | )% | |||||||||
Net loss | (64,229 | ) | 39,451 | 941 | — | (23,837 | ) | ||||||||||||
Net loss per share, basic and diluted (1) | $ | (0.48 | ) | $ | 0.29 | $ | 0.01 | $ | 0.01 | $ | (0.17 | ) | |||||||
___________
(1) | See below for a reconciliation of weighted-average shares outstanding used to calculate non-GAAP net loss per share |
Cloudera, Inc.
Three Months Ended July 31, 2016
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 weighted-average shares outstanding | Non-GAAP | |||||||||||||||
Cost of revenue- Subscription | $ | 9,706 | $ | (374 | ) | $ | (514 | ) | $ | — | $ | 8,818 | |||||||
Subscription gross margin | 81 | % | 1 | % | 1 | % | — | % | 83 | % | |||||||||
Cost of revenue- Services | 11,633 | (457 | ) | — | — | 11,176 | |||||||||||||
Services gross margin | 16 | % | 3 | % | — | % | — | % | 19 | % | |||||||||
Gross profit | 43,117 | 831 | 514 | — | 44,462 | ||||||||||||||
Total gross margin | 67 | % | 1 | % | 1 | % | — | % | 69 | % | |||||||||
Research and development | 26,635 | (1,458 | ) | — | — | 25,177 | |||||||||||||
Sales and marketing | 46,902 | (1,474 | ) | (431 | ) | — | 44,997 | ||||||||||||
General and administrative | 8,367 | (1,815 | ) | — | — | 6,552 | |||||||||||||
Loss from operations | (38,787 | ) | 5,578 | 945 | (32,264 | ) | |||||||||||||
Operating margin | (60 | )% | 9 | % | 1 | % | (50 | )% | |||||||||||
Net loss | (38,727 | ) | 5,578 | 945 | — | (32,204 | ) | ||||||||||||
Net loss per share, basic and diluted (1) | $ | (1.07 | ) | $ | 0.15 | $ | 0.03 | $ | 0.60 | $ | (0.29 | ) | |||||||
___________
(1) | See below for a reconciliation of weighted-average shares outstanding used to calculate non-GAAP net loss per share |
Cloudera, Inc.
GAAP weighted-average shares reconciled to non-GAAP weighted-average shares
(in thousands)
(unaudited)
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
GAAP weighted-average shares, basic and diluted | 134,506 | 36,257 | 87,293 | 36,090 | |||||||
Assumed preferred stock conversion | 1,628 | 74,907 | 37,661 | 74,907 | |||||||
Assumed IPO issuance | 375 | — | 477 | — | |||||||
Non-GAAP weighted-average shares, diluted | 136,509 | 111,164 | 125,431 | 110,997 | |||||||
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 weight-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 2018 | |||||
(in millions) | Q3 | FY | |||
GAAP net loss | ($70) - (67) | ($427) - (425) | |||
Stock-based compensation expense | 34 | 298 | |||
Amortization of acquired intangible assets | 1 | 3 | |||
Non-GAAP net loss | ($35) - (32) | ($126) - (124) | |||
GAAP weighted-average shares, basic and diluted | 137 - 139 | 112 - 114 | |||
Assumed preferred stock conversion | — | 19 | |||
Assumed IPO issuance | — | 1 | |||
Non-GAAP weighted-average shares, diluted | 137 - 139 | 132 - 134 | |||
(1) Stock-based compensation expense in fiscal 2018 is expected to be $34 million in the third quarter and $33 million in the fourth quarter. These amounts are 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.
Investor Relations Contact:
Kevin Cook
investor-relations@cloudera.com
+1 (650) 644-3900
Press Contact:
Deborah Wiltshire
press@cloudera.com
+1 (650) 644-3900