Cloudera: Fiscal 4Q21 Financial Results

(in $ million)	4Q20	4Q21	FY20	FY21
Revenue	211.7	226.6	794.2	869.3
*Growth*		7%		9%
Net income (loss)	(64.3)	(54.8)	(336.6)	(162.7)

Cloudera, Inc. reported results for its fourth quarter and fiscal year 2021, ended January 31, 2021.

Revenue for 4FQ21 was $226.6 million, an increase of 7% as compared to 4FQ20. Subscription revenue was $206.8 million, an increase of 14% as compared to 4FQ20. Annualized Recurring Revenue grew 10% Y/Y.

“Cloudera Data Platform demonstrated significant momentum in the quarter,” said Rob Bearden, CEO. “Customers migrating to CDP increased from about 10% of our customer base at the time we reported 3FQ21 to more than 15% of our customer base today. Most impressively, ARR from CDP now exceeds $60 million of total ARR. The adoption of CDP for hybrid data cloud and data lifecycle use cases is what will drive future growth and we’re very happy with this progress to date.”

4FQ21 Results
• GAAP loss from operations was $51.6 million, including an impairment charge of $35.8 million for right-of-use and other lease related assets, compared to $64.4 million for 4FQ20
• Non-GAAP income from operations was $50.5 million, compared to $11.0 million for 4FQ20
• Operating cash flow was $36.7 million, compared to negative $9.4 million for 4FQ20
• GAAP net loss per share was $0.18 per share, compared to $0.22 per share for 4FQ20
• Non-GAAP diluted net income per share was $0.15 per share, compared to $0.04 per share for 4FQ20

FY21 Results
• Revenue was $869.3 million, an increase of 9% Y/Y
• Subscription revenue was $782.8 million, an increase of 17% Y/Y
• GAAP loss from operations was $156.3 million, including an impairment charge of $35.8 million for right-of-use and other lease related assets, compared to $339.8 million for FY20
• Non-GAAP income from operations was $146.8 million, compared to a non-GAAP loss from operations of $39.4 million for FY20
• Operating cash flow was $155.8 million, compared to negative $36.8 million for FY20
• GAAP net loss per share was $0.54 per share, compared to $1.20 per share for FY20
• Non-GAAP diluted net income per share was $0.45, compared to a non-GAAP net loss per share of $0.13 for FY20

As of January 31, 2021, total cash, cash equivalents, marketable securities and restricted cash was $773.0 million.

Recent Business and Financial Highlights
• Annualized Recurring Revenue at the conclusion of FY21 was $778 million, representing 10% Y/Y growth
• GAAP subscription gross margin for the quarter was 87%, up from 84% in 4FQ20
• Non-GAAP subscription gross margin for the quarter was 91%, up from 88% in 4FQ20
• Closed a covenant lite, $500 million senior secured term loan
• Repurchased 26 million shares of common stock
• CDP Operational Database now available on AWS and Microsoft Azure
• CDP Public Cloud SOC 2 Type II Certified
• Partnered with NVIDIA to accelerate processing for enterprise data engineering and data science workflows on Cloudera Data Platform
• Launched Applied ML Prototypes, complete ML use cases with pre-built AI apps for CDP ML
• CDP Data Warehouse delivers better price performance in GigaOm benchmark testing

Outlook for 1FQ22, ending April 30, 2021:
• Revenue in the range of $216 million to $218 million
• Subscription revenue in the range of $195 million to $197 million
• Non-GAAP operating income in the range of $28 million to $33 million
• Non-GAAP net income per share in the range of $0.07 to $0.09 per share
• Diluted weighted-average share count of approximately 303 million shares

Outlook for FY22, ending January 31, 2022:
• Revenue in the range of $907 million to $927 million
• Subscription revenue in the range of $822 million to $832 million
• Non-GAAP operating income in the range of $137 million to $147 million
• Non-GAAP net income per share in the range of $0.35 to $0.39 per share
• Diluted weighted-average share count of approximately 308 million shares

Comments

Revenue for the quarter was $227 million, up 7% Y/Y and more than guidance announced last quarter ($219 million to $222 million) with loss diminishing.

Subscription revenue was $207 million up 14% Y/Y, and non-GAAP operating income was $50 million. Annualized recurring revenue reached $778 million at the conclusion of the quarter representing 10% Y/Y organic growth.

For FY21, total revenue was $869 million, an increase of 9% over FY20, more than previously predicted ($862 million to $865 million) and subscription revenue was $783 million up 17% Y/Y.

But share falls 9.2% just after this announcement.

ARR from CDP exceeds $60 million of total ARR.

Customers migrating to CDP increased from about 10% of its customer base at the time the firm reported 3Q21 to more than 15% of its customer base today, ahead of company's plan.

Over the course of a few months, nearly 300 customers have begun to move some or all of their workloads to CDP. This represents more than 15% of the customer base and is a traction since last quarter. Clients include Telecom Italia, ExxonMobil and McDonald's.

Customers who deploy CDP are growing faster than the rest of firm's customer base. Cloudera have two quarters of history, but they have a net expansion rate in excess of 120% for the 3FQ21 and 4FQ21 cohort of CDP adopters.

In 4FQ21, 3 percentage points of the 10% percentage points of ARR growth came from new customers.

In this regard, $1 million plus ARR customers are important and the company will continue to track these. In 4FQ21, it increased this number again by a record amount. From 179 in 3FQ21 to 190 in 4FQ21 it recorded an increase of 23% Y/Y. And as FY22 progresses, it expects the contribution to ARR growth from new customers to increase. It believe it can grow CDP ARR to more than $250 million in FY22.

From a partnership standpoint, the company expanded its hyperscale cloud provider relationships and solidified its partnership with IBM RedHat, particularly for its private cloud offerings.

Cloudera has 2 priorities for FY22. First is to promote hybrid data cloud adoption. This effort is already underway as evidenced by the strong ARR performance for CDP in 4FQ21. Early indications are that customer demand remains high and CDP adoption will continue to accelerate. Second, the firm has more innovation planned for CDP in FY22. It is dedicating more than 65% of R&D dollars to public cloud services and hybrid cloud product development.

The expected ramp in new customers will be modest in the first few quarters of FY22 as the firm focuses on supporting its existing base as an upgrade to CDP.

Cloudera expects 1FQ22 revenue to be between $216 million and $218 million, representing approximately 3% growth compared to 1FQ21 with subscription revenue in the range of $195 million to $197 million, up around 5% Y/Y.

For FY22, prediction is in the range of $907 million to $927 million or +4% to 7% in revenue.