Cloudera: Fiscal 3Q21 Financial Results

(in $ million)	3Q20	3Q21	9 mo. 20	9 mo. 21
Revenue	198.3	217.9	582.5	642.7
*Growth*		10%		*10%*
Net income (loss)	(82.1)	(13.9)	(272.3)	(108.0)

Cloudera, Inc. reported results for its third quarter of fiscal 2021, ended October 31, 2020.

Total revenue was $217.9 million, an increase of 10% as compared to 3FQ20.

Subscription revenue was $197.4 million, a yearly increase of 18%.

Annualized recurring revenue grew 12% Y/Y.

“In the third quarter, CDP Private Cloud became available, we announced three new upcoming cloud-native services on CDP Public Cloud, and the number of CDP Public Cloud paying customers increased by more than 40%. With CDP Private Cloud now in-market, our hybrid multi-cloud offerings can be implemented by customers and our Enterprise Data Cloud vision is nearly complete. We are beginning to see an acceleration of migrations by existing customers from legacy Cloudera and Hortonworks platforms to CDP,” said Rob Bearden, CEO. “We believe that Cloudera has never been better-positioned to capture more of the rapidly growing data management and analytics market opportunity for hybrid multi-cloud solutions. As a result, we have announced that the board has authorized the repurchase of an additional $500 million in shares of our stock.”

3FQ21 Results
• GAAP loss from operations was $12.3 million, compared to $82.5 million for 3FQ20.
• Non-GAAP income from operations was $49.3 million, compared to a non-GAAP loss from operations of $8.2 million for 3FQ20.
• Operating cash flow was $18.4 million, compared to negative $5.9 million for 3FQ20.
• GAAP net loss per share was $0.04 per share, compared to $0.29 per share for 3FQ20.
• Non-GAAP net income per share was $0.15 per share, compared to a non-GAAP net loss per share of $0.03 per share for 3FQ20.

As of October 31, 2020, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $567.5 million.

3FQ21 Recent Business and Financial Highlights
• Annualized recurring revenue was $756 million, a 12% Y/Y growth.
• GAAP subscription gross margin was 87%, up from 82% in 3FQ20.
• Non-GAAP subscription gross margin was 91%, up from 86% in 3FQ20.
• The company recognized as a leader in The Forrester Wave: Notebook-Based Predictive Analytics and ML, 3Q20
• Acquired Eventador, a provider of cloud-native services for streaming analytics, to deliver more customer value for real-time analytics use cases
• Three new enterprise data cloud services designed for data specialists were announced for Cloudera Data Platform (CDP): CDP Data Engineering; CDP Operational Database; and CDP Data Visualization

Outlook 4 for FQ21, ending January 31, 2021:
• Total revenue in the range of $219 million to $222 million
• Subscription revenue in the range of $199 million to $202 million
• Non-GAAP operating income in the range of $35 million to $40 million
• Non-GAAP net income per share in the range of $0.10 to $0.12 per share
• Diluted weighted-average share count of approximately 323 million shares

Outlook for FY21, ending January 31, 2021:
• Total revenue in the range of $862 million to $865 million
• Subscription revenue in the range of $775 million to $778 million
• Non-GAAP operating income in the range of $131 million to $136 million
• Non-GAAP net income per share in the range of $0.40 to $0.42 per share
• Diluted weighted-average share count of approximately 317 million shares

The business outlook is based on the assumption that the recessionary impact of the Covid-19 will continue at least through 4FQ21.

Comments

At the end of the former quarter, sales at $214.3 million were expected to be down between -2% an -3% for the current 3-month period. Finally they reach $218 million, up 10% Y/Y and 2% Q/Q.

Shares float up 6% after this announcement, diminishing losses and strong revenue guidance

Subscription revenue was $197 million, an increase of 18% Y/Y.

Annualized recurring revenue reached $756 million at the conclusion of the quarter, representing yearly 12% organic growth.

The total number of customers who exceeded $100,000 of ARR was at 1,008. Those who generate ARR greater than $1 million grew from 172 last quarter to 179 in the current one.

Cloudera expanded customers representing greater than $1 million of ARR to 179 from 172 last quarter, which represents a 23% Y/Y increase. Also, gains in 3FQ21 were similar to 3FQ21 with respect to non-paying users of the software becoming subscription customers.

Combining that with growing CDP public cloud adoption, more than 10% of customer base has begun their move to CDP. More than 50% of $1 million+ customers have initiated their migration to CDP. Migrating existing customers to CDP is now the primary objective of sales teams and the company set aggressive migration targets for 4Q21 and beyond.

CDP public cloud adoption is going well. The number of paying public cloud customers increased by 40%. Consumption revenue also grew Q/Q but remains relatively small. In general, customers who are renewing today are doing so on the basis of the CDP roadmap with plans to take advantage of hybrid platform, leveraging both CDP public and private cloud.

Examples of customers using CDP ML include Globe Telecom, APG, which is a pension provider in the Netherlands, and Serasa S.A., which is a credit services provider in Brazil.

Thoses utilizing CDP data warehouse include IQVIA, a large life sciences provider, and Teranet,an eRegistry provider headquartered in Canada.

The firm expects 4FQ21 revenue to be between $219 million and $222 million, representing approximately 4% growth compared to 4FQ20 of last year with subscription revenue in the range of $199 million to $202 million, up approximately 10% Y/Y.

Cloudera does not anticipate an increase in operating profit in 3FQ21 to be repeated. It expects operating expenses to increase modestly in 4FQ21 relative to 3FQ21, resulting in operating income margin of approximately 15% for FY21.

For FY21, the firm expects revenue between $862 million and $865 million, representing approximately 9% growth with subscription revenue in the range of $775 million to $778 million, up approximately 16% Y/Y.