PR Newswire | Sep 2, 2020 04:11PM EDT

09/02 15:10 CDT

Cloudera Reports Second Quarter Fiscal 2021 Financial Results SANTA CLARA, Calif., Sept. 2, 2020

SANTA CLARA, Calif., Sept. 2, 2020 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its second quarter of fiscal 2021, ended July 31, 2020. Total revenue for the second quarter was $214.3 million, an increase of 9% as compared to the second quarter of fiscal 2020. Subscription revenue was $191.5 million, an increase of 17% as compared to the second quarter of fiscal 2020. Annualized Recurring Revenue grew 12% year-over-year.

"We achieved a major milestone last month with the general availability of Cloudera Data Platform Private Cloud, significantly advancing our Enterprise Data Cloud strategy," said Rob Bearden, chief executive officer, Cloudera. "CDP offers a powerful hybrid architecture that separates compute and storage while maintaining data context for greater agility, ease of use and more efficient infrastructure consumption. With CDP, we are participating in the fastest growing segment of the market through cloud-native services. Uniquely, we also benefit from demand for hybrid and multi-cloud solutions that allow enterprises to optimize the performance, cost and security of workloads and use cases."

Second quarter Fiscal 2021 results

* GAAP loss from operations for the second quarter of fiscal 2021 was $36.5 million, compared to $89.1 million for the second quarter of fiscal 2020 * Non-GAAP income from operations for the second quarter of fiscal 2021 was $29.8 million, compared to a non-GAAP loss from operations of $7.4 million for the second quarter of fiscal 2020 * Operating cash flow for the second quarter of fiscal 2021 was $32.4 million, compared to negative $33.0 million for the second quarter of fiscal 2020 * GAAP net loss per share for the second quarter of fiscal 2021 was $0.12 per share, compared to $0.31 per share for the second quarter of fiscal 2020 * Non-GAAP net income per share for the second quarter of fiscal 2021 was $0.10 per share, compared to a non-GAAP net loss per share of $0.02 per share for the second quarter of fiscal 2020

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, 2020, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $568.7 million.

Recent Business and Financial Highlights

* Annualized Recurring Revenue at the conclusion of the second quarter of fiscal 2021 was $739 million, representing 12% year-over-year growth * GAAP subscription gross margin for the quarter was 85%, up from 82% in the second quarter of fiscal 2020 * Non-GAAP subscription gross margin for the quarter was 89%, up from 86% in the second quarter of fiscal 2020 * Cloudera Data Platform (CDP) Private Cloud is now generally available * CDP Public Cloud is now available on AWS Marketplace in strategic collaboration agreement with AWS * Sarah Shin was promoted to new role of Chief Diversity Officer

Business Outlook

The outlook for the third quarter of fiscal 2021, ending October 31, 2020, is:

* Total revenue in the range of $207 million to $210 million * Subscription revenue in the range of $187 million to $190 million * Non-GAAP operating income in the range of $27 million to $31 million * Non-GAAP net income per share in the range of $0.08 to $0.10 per share * Diluted weighted-average share count of approximately 320 million shares

The outlook for fiscal 2021, ending January 31, 2021, is:

* Total revenue in the range of $839 million to $853 million * Subscription revenue in the range of $755 million to $765 million * Non-GAAP operating income in the range of $102 million to $112 million * Non-GAAP net income per share in the range of $0.32 to $0.35 * Diluted weighted-average share count of approximately 315 million shares

The business outlook is based on the assumption that the recessionary impact of the coronavirus pandemic (COVID-19) will continue through Cloudera's fourth quarter of our fiscal 2021.

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its second quarter fiscal 2021 results and the outlook for its third quarter of fiscal 2021 and full year fiscal 2021 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: +1-833-579-0900 * Participant International Number: +1-778-560-2567 * Conference ID: 3554107

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. Cloudera delivers an enterprise data cloud for any data, anywhere, from the Edge to AI. Powered by the relentless innovation of the open source community, Cloudera advances digital transformation for the world's largest enterprises. Learn more at cloudera.com.

Connect with Cloudera

About Cloudera: cloudera.com/about-cloudera.htmlRead 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/clouderaSee us on YouTube: youtube.com/user/clouderahadoopJoin the Cloudera Community: community.cloudera.comRead 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 statements about our short-term and long-term assumptions, goals and targets, including our "Business Outlook" for our third quarter of fiscal 2021 and our full year fiscal 2021 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, the impact of and uncertainties related to COVID-19, and other risks or uncertainties that are described under the caption "Risk Factors" in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC), and in our other SEC filings. You can obtain copies of our SEC filings on the SEC's website at www.sec.gov. Additionally, these forward-looking statements, particularly our guidance, involve risk, uncertainties and assumptions, including those related to the impact of COVID-19 on our business and global economic conditions. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, the timeframes for and severity of the impact of COVID-19 on our customers' purchasing decisions and the length of our sales cycles, particularly for customers in certain industries highly affected by COVID-19. 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 and audited 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 cost of revenue-subscription, non-GAAP cost of revenue-services, non-GAAP subscription gross margin, non-GAAP services gross margin, non-GAAP gross margin, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating margin, and historical and forward-looking non-GAAP income/loss from operations, non-GAAP net income/loss, and non-GAAP net income/loss per share. These non-GAAP financial measures exclude stock-based compensation, acquisition and disposition-related expenses (if any), extraordinary non-cash real estate impairment charges (if any), and amortization of acquired intangible assets from our unaudited and audited condensed consolidated statement of operations.

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 financial statement tables titled "Use of Non-GAAP Financial Information" as well as the related financial statement 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.

Annualized Recurring Revenue

Annualized Recurring Revenue ("ARR") is a performance metric, which we use to assess the health and trajectory of our business. ARR equals the annualized value of all recurring subscription contracts with active entitlements as of the end of the period. ARR does not reflect non-recurring partner revenue, subscription revenue with certain related parties, custom engineering, remote operation and management services, or premium add-on support.

Cloudera, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)



Three Months Ended July 31, Six Months Ended July 31,

2020 2019 2020 2019

Revenue:

Subscription $ 191,522 $ 164,102 $378,607 $318,940

Services 22,814 32,609 46,189 65,239

Total revenue 214,336 196,711 424,796 384,179

Cost of revenue:^(1) (2)

Subscription 27,929 29,075 56,565 58,412

Services 21,710 28,055 47,315 59,951

Total cost of revenue 49,639 57,130 103,880 118,363

Gross profit 164,697 139,581 320,916 265,816

Operating expenses:^(1) (2)

Research and development 62,304 65,742 126,520 129,915

Sales and marketing 105,760 112,491 218,895 231,874

General and administrative 33,167 50,445 67,842 96,877

Total operating expenses 201,231 228,678 413,257 458,666

Loss from operations (36,534) (89,097) (92,341) (192,850)

Interest income 1,444 3,156 3,685 6,447

Other income (expense), net 980 104 (1,517) 337

Loss before provision for income taxes (34,110) (85,837) (90,173) (186,066)

Provision for income taxes (1,887) (1,206) (3,838) (4,107)

Net loss $ (35,997) $ (87,043) $(94,011)$(190,173)

Net loss per share, basic and diluted $ (0.12) $ (0.31) $(0.32) $(0.69)

Weighted-average shares used in computing net loss per share,300,103 276,778 297,724 274,207 basic and diluted



(1) Amounts include stock-based compensation expense as follows (in thousands):



Three Months Ended July 31, Six Months Ended July 31,

2020 2019 2020 2019

Cost of revenue - subscription $ 3,684 $ 4,189 $7,676 $8,008

Cost of revenue - service 3,004 4,196 6,991 8,456

Research and development 17,057 18,453 36,881 36,294

Sales and marketing 14,031 15,435 29,854 28,799

General and administrative 8,841 19,460 18,653 29,047

Total stock-based compensation expense $ 46,617 $ 61,733 $100,055 $110,604



(2) Amounts include amortization of acquired intangible assets as follows (in thousands):



Three Months Ended July 31, Six Months Ended July 31,

2020 2019 2020 2019

Cost of revenue - subscription $ 3,080 $ 2,687 $6,159 $5,597

Sales and marketing 16,596 17,250 33,193 34,500

Total amortization of acquired intangible assets $ 19,676 $ 19,937 $39,352 $40,097

Cloudera, Inc.

Condensed Consolidated Balance Sheets

(in thousands)



July 31, January 31, 2020 2020

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents $143,171 $107,638

Marketable securities 288,330 253,361

Accounts receivable, net 149,326 249,971

Deferred costs 46,199 54,776

Prepaid expenses and other current assets28,245 42,155

Total current assets 655,271 707,901

Property and equipment, net 20,995 21,988

Marketable securities, non-current 133,890 122,193

Intangible assets, net 565,884 605,236

Goodwill 590,361 590,361

Deferred costs, non-current 32,717 35,260

Operating lease right-of-use assets 194,751 204,642

Other assets 9,657 12,209

TOTAL ASSETS $2,203,526$2,299,790

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $4,337 $3,858

Accrued compensation 55,666 61,826

Other contract liabilities 8,351 12,225

Other accrued liabilities 19,583 22,297

Operating lease liabilities 21,629 19,181

Deferred revenue 409,873 460,561

Total current liabilities 519,439 579,948

Operating lease liabilities, non-current 181,339 192,324

Deferred revenue, non-current 67,747 81,926

Other accrued liabilities, non-current 6,462 7,223

TOTAL LIABILITIES 774,987 861,421

STOCKHOLDERS' EQUITY:

Common stock 15 15

Additional paid-in capital 3,008,394 2,923,905

Accumulated other comprehensive income 763 273

Accumulated deficit (1,580,633)(1,485,824)

TOTAL STOCKHOLDERS' EQUITY 1,428,539 1,438,369

TOTAL LIABILITIES AND STOCKHOLDERS' $2,203,526$2,299,790EQUITY

Cloudera, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Three Months Ended July 31,Six Months Ended July 31,

2020 2019 2020 2019



CASH FLOWS FROM OPERATING ACTIVITIES

Net loss $ (35,997)$ (87,043) $(94,011)$(190,173)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization 22,366 22,850 44,939 46,166

Non-cash lease expense 11,391 11,583 22,692 22,898

Stock-based compensation expense 46,617 61,733 100,055 110,604

Amortization of deferred costs 16,785 11,321 33,410 20,973

Other 1,604 (691) 5,126 (1,201)

Changes in assets and liabilities:

Accounts receivable 18,512 (14,836) 100,340 80,660

Prepaid expenses and other assets 4,102 (3,436) 14,628 (3,958)

Deferred costs (11,667) (12,395) (22,290) (21,807)

Accounts payable (1,137) (1,056) (830) (3,661)

Accrued compensation 11,766 6,440 (6,646) (6,090)

Other accrued liabilities (1,384) 8,717 (4,279) 8,689

Other contract liabilities (3,377) (4,120) (3,874) (9,242)

Operating lease liabilities (18,698) (13,955) (21,206) (25,034)

Deferred revenue (28,435) (18,092) (67,249) (50,344)

Net cash provided by (used in) operating activities 32,448 (32,980) 100,805 (21,520)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of marketable securities (192,709) (114,771) (273,569) (311,224)

Proceeds from sale of marketable securities 38,113 30,114 104,172 39,385

Maturities of marketable securities 86,916 105,404 123,710 235,402

Capital expenditures (3,341) (2,028) (4,430) (4,721)

Net cash (used in) provided by investing activities (71,021) 18,719 (50,117) (41,158)

CASH FLOWS FROM FINANCING ACTIVITIES

Repurchases of common stock - - (25,974) -

Taxes paid related to net share settlement of restricted (9,266) (7,847) (23,283) (15,645) stock units

Proceeds from employee stock plans 28,662 3,270 33,639 9,220

Net cash provided by (used in) financing activities 19,396 (4,577) (15,618) (6,425)

Effect of exchange rate changes on cash, cash equivalents and1,423 (449) 463 (1,509) restricted cash

Net (decrease) increase in cash, cash equivalents and (17,754) (19,287) 35,533 (70,612) restricted cash

Cash, cash equivalents and restricted cash - Beginning of 164,277 110,714 110,990 162,039 period

Cash, cash equivalents and restricted cash - End of period $ 146,523 $ 91,427 $146,523 $91,427





Reconciliation of cash, cash equivalents and restricted cash as shown in the statement of cash flows:

As of July 31,

2020 2019

Cash and cash equivalents $143,171 $88,075

Restricted cash included in Other assets 3,352 3,352

Total cash, cash equivalents and restricted cash $146,523 $91,427

Cloudera, Inc.

Three Months Ended July 31, 2020

GAAP Results Reconciled to Non-GAAP Results

(in thousands, except percentage and per share amounts)

(unaudited)



Stock-Based Amortization of GAAP Compensation Acquired Non-GAAP Expense Intangible Assets

Cost of revenue- Subscription $27,929 $ (3,684) $(3,080) $21,165

Subscription gross margin 85 %2 % 2 %89 %

Cost of revenue- Services 21,710 (3,004) - 18,706

Services gross margin 5 %13 % - %18 %

Gross profit 164,697 6,688 3,080 174,465

Total gross margin 77 %3 % 1 %81 %

Research and development 62,304 (17,057) - 45,247

Sales and marketing 105,760 (14,031) (16,596) 75,133

General and administrative 33,167 (8,841) - 24,326

(Loss) income from operations (36,534) 46,617 19,676 29,759

Operating margin (17) %22 % 9 %14 %

Net (loss) income (35,997) 46,617 19,676 30,296

Net (loss) income per share, basic (0.12) 0.15 0.07 0.10

Net (loss) income per share, diluted ^(1) $(0.12) $ 0.15 $0.07 $0.10



(1) See below for a reconciliation of weighted-average shares outstanding used to calculate non-GAAP net income per share

Cloudera, Inc.

Three Months Ended July 31, 2019

GAAP Results Reconciled to Non-GAAP Results

(in thousands, except percentage and per share amounts)

(unaudited)



Stock-Based Amortization of GAAP Compensation Acquired Non-GAAP Expense Intangible Assets

Cost of revenue- Subscription $29,075 $ (4,189) $(2,687) $22,199

Subscription gross margin 82 %3 % 2 %86 %

Cost of revenue- Services 28,055 (4,196) - 23,859

Services gross margin 14 %13 % - %27 %

Gross profit 139,581 8,385 2,687 150,653

Total gross margin 71 %4 % 1 %77 %

Research and development 65,742 (18,453) - 47,289

Sales and marketing 112,491 (15,435) (17,250) 79,806

General and administrative 50,445 (19,460) - 30,985

Loss from operations (89,097) 61,733 19,937 (7,427)

Operating margin (45) %31 % 10 %(4) %

Net loss (87,043) 61,733 19,937 (5,373)

Net loss per share, basic and diluted $(0.31) $ 0.22 $0.07 $(0.02)

Cloudera, Inc.

GAAP weighted-average shares reconciled to non-GAAP weighted-average shares

(in thousands)

(unaudited)



Three Months Ended July 31,

2020 2019

GAAP weighted-average shares, basic 300,103 276,778

Effect of dilutive securities:

Stock options, unvested restricted stock units and ESPP 12,592 -

Non-GAAP weighted-average shares, diluted ^(1) 312,695 276,778



(1) Non-GAAP weighted-average shares, diluted is intended to represent the weighted-average shares on a diluted basis for purposes of calculating Non-GAAP net income per share.

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 we exclude from our non-GAAP financial measures, we believe 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. * Extraordinary non-cash real estate impairment charges. We currently lease approximately 225,000 square feet of space for our former corporate headquarters in Palo Alto, California under a lease agreement that expires in 2027. Upon the completion of the merger with Hortonworks, we added approximately 92,000 square feet of space in Santa Clara, California under a lease agreement that expires in 2026 and we relocated our corporate headquarters to this space during the second quarter of fiscal 2021. Extraordinary non-cash real estate impairment charges relate to potential charges that we may incur as a result of future activities with respect to our leased office locations.

Cloudera, Inc.

Reconciliation of Non-GAAP Financial Guidance

(unaudited)



Fiscal 2021

(in millions) Q3 FY

GAAP operating loss ($34) - ($30)($213) - ($178)

Stock-based compensation expense ^(*) 41 187

Amortization of acquired intangible assets 20 78

Extraordinary non-cash real estate impairment charges ^(*) - 50 - 25

Non-GAAP operating income $27 - $31 $102 - $112



Fiscal 2021

(in millions) Q3 FY

GAAP net loss ($35) - ($29)($214) - ($180)

Stock-based compensation expense ^(*) 41 187

Amortization of acquired intangible assets 20 78

Extraordinary non-cash real estate impairment charges ^(*) - 50 - 25

Non-GAAP net income $26 - $32 $101 - $110



(*) Stock-based compensation expense and real-estate impairment charges are impacted by a number of variables, each of which are inherently difficult to forecast. As a result, the guidance presented above is subject to a number ofuncertainties and assumptions that may cause actual results to differ materially.

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SOURCE Cloudera, Inc.