Delaware (State or other jurisdiction of incorporation or organization) | 001-38069 (Commission File Number) | 26-2922329 (I.R.S. Employer Identification Number) |
395 Page Mill Road Palo Alto, CA 94306 | ||
(Address of principal executive offices and zip code) | ||
(650) 362-0488 | ||
(Registrant's telephone number, including area code) | ||
___________________________________ |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release dated September 7, 2017 |
CLOUDERA, INC | |
By: | /s/ David Middler |
Name: | David Middler |
Title: | Chief Legal Officer |
Exhibit Number | Description | |
99.1 |
• | 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 |
• | 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 |
• | 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 |
• | 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 |
• | Participant Toll Free Number: +1-833-231-7247 |
• | Participant International Number: +1-647-689-4091 |
• | Conference ID: 67627548 |
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 |
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 | % |
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 | % |
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 |
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 | $ | — |
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 |
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 |
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 |
• | 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. |
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 |