Cloudera: Fiscal 4Q20 Financial Results

Cloudera, Inc. reported results for its fourth quarter and fiscal year 2020, ended January 31, 2020.

4FQ20 sales were $211.7 million, and subscription revenue was $182.0 million. Annualized recurring revenue grew 11% Y/Y.

“We continue to execute well, delivering another strong quarter in Q4 on financial and operational metrics. I am especially pleased that we’re seeing strong interest in CDP, with many customers across our base building plans for CDP Public Cloud adoption,” said Rob Bearden, CEO. “In FY20, we finished the hard work of merger integration and completely re-positioned the company for long-term success. I could not be more enthusiastic about the set-up for Cloudera as we enter the next phase of the market’s evolution, helping our customers realize true hybrid and multi-cloud data solutions. We believe the opportunity for Cloudera has never been bigger and, with CDP Private Cloud expected in Q2, we believe it expands even further. Also, consistent with guidance, we plan to generate substantial non-GAAP operating income and cash flow in FY21.”

Except where noted, all prior period amounts include the results of Hortonworks beginning January 3, 2019, the date the two companies merged.

Results in 4FQ20

• GAAP loss from operation was $64.4 million, compared to a GAAP loss from operations of $87.0 million for 4FQ19.
• Non-GAAP income from operations was $11.0 million, compared to a non-GAAP loss from operations of $30.2 million for 4FQ19.
• Operating cash flow was negative $9.4 million, which includes $16.1 million of merger-related payments, compared to operating cash flow of $40.2 million for 4FQ19.
• GAAP net loss per share was $0.22, compared to a GAAP net loss per share of $0.45 for 4FQ19.
• Non-GAAP net income per shaer was $0.04, compared to a non-GAAP net loss per share of $0.15 for 4FQ19.

FY20 results

• Total revenue was $794.2 million and subscription revenue was $667.8 million.
• GAAP loss from operations was $339.8 million, compared to a GAAP loss from operations of $193.8 million for FY19.
• Non-GAAP loss from operations was $39.4 million, compared to a non-GAAP loss from operations of $67.3 million for FY19.
• Operating cash flow for fiscal year 2020 was negative $36.8 million, which includes $60.5 million of merger-related payments, compared to operating cash flow of $34.3 million for FY19.
• GAAP net loss per share was $1.20, compared to a GAAP net loss per share of $1.21 for FY19.

As of January 31, 2020, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $486.5 million.

Recent business and financial highlights
• Annualized recurring revenue at the conclusion of the quarter was $731.2 million, representing 11% Y/Y growth
• GAAP subscription gross margin for the quarter was 84%
• Non-GAAP subscription gross margin for the quarter was 88%
• Non-GAAP income from operations for the quarter was $11.0 million, including $7.0 million of merger-related spending
• Customers with annualized recurring revenue greater than $100,000 were 1,004, up 27 from the prior quarter
• Board of directors authorized the repurchase of up to $100 million of common stock
• Appointed Robert Bearden as president and CEO. He has served on firm’s board of directors since the merger of Cloudera and Hortonworks
• Cloudera Data Platform debuted on Microsoft Azure Marketplace
• Introduced an Apache NiFi and Apache Kafka public cloud services on CDP, flow management and streams messaging on data hub
• Introduced the initial release of Cloudera Streaming Analytics, powered by Apache Flink, expanding the Cloudera data lifecycle capabilities with real-time streaming analytics

Share Repurchase Authorization
The board of directors has authorized the repurchase of up to $100 million of common stock, through open market purchases, block trades and/or in privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing, volume and nature of any repurchases will be determined by Cloudera’s management based on its evaluation of the capital needs of the business, market conditions, applicable legal requirements and other factors. No time limit was set for the completion of the repurchase program, and the program may be suspended or discontinued at any time. Cloudera currently expects to fund the repurchase program using its cash balance.

Outlook for 1FQ21, ending April 30, 2020:
• Total revenue in the range of $202 million to $207 million
• Subscription revenue in the range of $180 million to $183 million
• Non-GAAP operating loss/income in the range of negative $3 million to positive $2 million
• Non-GAAP net loss/income per share in the range of negative $0.01 to positive $0.01
• Basic and diluted weighted-average share counts of approximately 302 million and 314 million shares, respectively

Outlook for FY21, ending January 31, 2021:
• Total revenue in the range of $860 million to $880 million
• Subscription revenue in the range of $750 million to $760 million
• Non-GAAP operating income in the range of $82 million to $92 million
• Non-GAAP net income per share in the range of $0.25 to $0.29
• Diluted weighted-average share count of approximately 322 million shares