EX-99.1 2 q4-18cldrexhibit991.htm EXHIBIT 99.1 Exhibit


Cloudera Reports Fourth Quarter and Fiscal Year 2018 Financial Results


•
Q4 revenue up 42% year-over-year
•
Q4 subscription revenue up 50% year-over-year
•
Net expansion rate of 136%


PALO ALTO, Calif. – April 3, 2018: Cloudera, Inc. (NYSE: CLDR), the modern platform for machine learning and analytics optimized for the cloud, reported results for its fourth quarter and fiscal year 2018, ended January 31, 2018. Total revenue was $103.5 million, an increase of 42% from the fourth quarter of fiscal 2017. Subscription revenue was $84.3 million, an increase of 50% from the year-ago period.

“It was a year of considerable accomplishment for Cloudera and our team. In our first few quarters as a public company, we introduced six major product offerings, completed a strategic acquisition, and delivered significant technological innovations -- with the open source community and also proprietary to our products,” said Tom Reilly, chief executive officer at Cloudera. “Most enterprises are just embarking on their digital transformation journeys. In a rapidly evolving and disruptive market, we believe the investments we’ve made have us well-positioned to lead them on that journey.”

GAAP loss from operations for the fourth quarter of fiscal 2018 was $45.7 million, compared to a GAAP loss from operations of $61.0 million for the fourth quarter of fiscal 2017. Non-GAAP loss from operations for the fourth quarter of fiscal 2018 was $16.6 million, compared to a non-GAAP loss from operations of $33.4 million in the year-ago period.

Operating cash flow for the fourth quarter of fiscal 2018 was negative $22.0 million compared to operating cash flow of negative $31.9 million in the fourth quarter of fiscal 2017.

GAAP net loss per share for the fourth quarter of fiscal 2018 was $0.31 per share, based on weighted-average shares outstanding of 142.9 million shares, compared to a GAAP net loss per share in the fourth quarter of fiscal 2017 of $1.67 per share, based on weighted-average shares outstanding of 36.8 million shares. See financial statement tables below for additional information regarding historical and forward-looking stock-based compensation expenses and shares outstanding.

Non-GAAP net loss per share for the fourth quarter of fiscal 2018 was $0.10 per share, based on non-GAAP weighted-average shares outstanding of 142.9 million shares, compared to non-GAAP net loss per share in the fourth quarter of fiscal 2017 of $0.30 per share, based on non-GAAP weighted-average shares outstanding of 111.7 million shares.

For fiscal year 2018, total revenue was $367.4 million, an increase of 41% year-over-year. Subscription revenue was $301.0 million, an increase of 50% year-over-year, and equaled 82% of total revenue, up from 77% for fiscal year 2017.

GAAP loss from operations for fiscal year 2018 was $390.3 million compared to GAAP loss from operations of $187.3 million in fiscal year 2017. Non-GAAP loss from operations for fiscal year 2018 was $96.6 million compared to non-GAAP loss from operations of $140.3 million in fiscal year 2017.

Operating cash flow for fiscal year 2018 was negative $42.3 million compared to operating cash flow of negative $116.6 million in fiscal year 2017.

GAAP net loss per share for fiscal year 2018 was $3.38 per share, based on weighted-average shares outstanding of 114.1 million shares, compared to a GAAP net loss per share in fiscal year 2017 of $5.15 per share, based on weighted-average shares outstanding of 36.4 million shares.





Non-GAAP net loss per share for fiscal year 2018 was $0.69 per share, based on non-GAAP weighted-average shares outstanding of 133.1 million shares, compared to non-GAAP net loss per share for fiscal year 2017 of $1.26 per share, based on non-GAAP weighted-average shares outstanding of 111.3 million shares.

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 January 31, 2018, the company had total cash, cash equivalents, marketable securities and restricted cash of $460.7 million.

Recent Business and Financial Highlights

Fourth Quarter Fiscal 2018:
•
Subscription revenue was up 50% year-over-year to $84.3 million
•
Non-GAAP subscription gross margin for the quarter was 86%, more than 200 basis points higher than the fourth quarter of fiscal 2017
•
Dollar-based net expansion rate was 136% for the quarter
•
International revenue grew 66% year-over-year
•
32 net new Global 8000 customers added
•
Non-GAAP operating loss improved approximately 3,000 basis points as compared to the year-ago quarter
•
Cloudera Altus was named a winner of the 2017-2018 Cloud Awards for Most Innovative Use of Data in the Cloud (https://www.cloud-awards.com/2018-shortlist/)
•
Cloudera was recognized on four separate occasions for leading security industry awards
•
Cloudera was named a winner of two IoT Breakthrough Awards, the Overall Connected Car Innovation of the Year (with Navistar) and Connected Car Insurance Solution of the Year (with Octo Telematics) (http://iotbreakthrough.com/winners/)

Full Year Fiscal 2018:
•
Subscription revenue was up 50% year-over-year to $301.0 million
•
Non-GAAP subscription gross margin for the year was 85%, more than 300 basis points higher than fiscal year 2017
•
International revenue grew 62% year-over-year
•
132 net new Global 8000 customers added
•
Non-GAAP operating loss improved more than 2,700 basis points as compared to the prior fiscal year

Business Outlook

The outlook for the first quarter of fiscal 2019, ending April 30, 2018, is:

•
Total revenue in the range of $101 million to $102 million, representing approximately 28% year-over-year growth
•
Subscription revenue in the range of $85 million to $86 million, representing approximately 32% year-over-year growth
•
Non-GAAP net loss per share in the range of $0.19 to $0.17 per share
•
Weighted-average shares outstanding of approximately 147 million shares

The outlook for fiscal 2019, ending January 31, 2019, is:

•
Total revenue in the range of $435 million to $445 million, representing approximately 20% year-over-year growth




•
Subscription revenue in the range of $370 million to $375 million, representing approximately 24% year-over-year growth
•
Operating cash flow in the range of negative $40 million to $35 million
•
Non-GAAP net loss per share in the range of $0.62 to $0.59 per share
•
Weighted-average shares outstanding of approximately 152 million shares

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its fourth quarter and full year fiscal 2018 results and the outlook for its first quarter of fiscal 2019 and full year fiscal 2019 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: +1-833-231-7247
•
Participant International Number: +1-647-689-4091
•
Conference ID: 3093228

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. We deliver the modern platform for machine learning and analytics optimized for the cloud. The world’s largest enterprises trust Cloudera to help solve their most challenging business problems. Learn more at www.cloudera.com.

Connect with Cloudera
About Cloudera: cloudera.com/about-cloudera.html
Read our VISION blog: vision.cloudera.com/ and Engineering blog: blog.cloudera.com/
Follow us on Twitter: twitter.com/cloudera
Visit us on Facebook: facebook.com/cloudera
See us on YouTube: youtube.com/user/clouderahadoop
Join the Cloudera Community: community.cloudera.com
Read 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.

Global 8000 Customer List

We periodically update the Global 8000 list based on the FORBES Global 2000 list and information from Data.com, using the most recently published FORBES Global 2000 list (which is updated by Forbes annually) and the most recent Data.com information (which is continuously updated by Data.com).  Our customer count is subject to ongoing adjustment and, when adjustments occur, previously disclosed numbers of customers are updated to allow for comparability.





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 our belief that the enterprise machine learning and analytics market will quickly emerge and that we will continue to lead its direction through technology and product innovation, our expectation that we will continue our momentum in machine learning, analytics and the cloud, and our “Business Outlook” for our first quarter of fiscal 2019 and full year fiscal 2019 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, and other risks or uncertainties that are described under the caption “Risk Factors” in our most recently filed Quarterly Report on Form 10‑Q filed with the SEC on December 8, 2017, and in our other SEC filings. 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 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 subscription gross margins, non-GAAP loss from operations, non-GAAP net loss, and historical and forward-looking non-GAAP net loss per share. These non-GAAP financial measures exclude stock-based compensation, acquisition- and disposition-related expenses (if any), amortization of acquired intangible assets, and donations of common stock made to the Cloudera Foundation from the Cloudera unaudited condensed consolidated statement of operations. In addition, we use non-GAAP weighted-average shares outstanding to calculate non-GAAP net loss per share.

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 tables titled “Use of Non-GAAP Financial Information” as well as the related 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.






Cloudera, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

 
Three Months Ended January 31,
 
Year Ended January 31,
 
2018
 
2017
 
2018
 
2017
Revenue:
 
 
 
 
 
 
 
Subscription
$
84,260

 
$
56,159

 
$
301,022

 
$
200,252

Services
19,190

 
16,668

 
66,421

 
60,774

Total revenue
103,450

 
72,827

 
367,443

 
261,026

Cost of revenue:(1) (2)
 
 
 
 
 
 
 
Subscription
14,729

 
9,860

 
70,902

 
38,704

Services
18,098

 
12,315

 
87,133

 
48,284

Total cost of revenue
32,827

 
22,175

 
158,035

 
86,988

Gross profit
70,623

 
50,652

 
209,408

 
174,038

Operating expenses:(1) (2) (3)
 
 
 
 
 
 
 
Research and development
38,925

 
25,191

 
215,695

 
102,309

Sales and marketing
61,828

 
55,911

 
298,467

 
203,161

General and administrative
15,548

 
30,598

 
85,539

 
55,907

Total operating expenses
116,301

 
111,700

 
599,701

 
361,377

Loss from operations
(45,678
)
 
(61,048
)
 
(390,293
)
 
(187,339
)
Interest income, net
1,560

 
613

 
5,150

 
2,756

Other income (expense), net
1,080

 
(236
)
 
1,429

 
(547
)
Net loss before provision for income taxes
(43,038
)
 
(60,671
)
 
(383,714
)
 
(185,130
)
Provision for income taxes
(869
)
 
(761
)
 
(2,079
)
 
(2,187
)
Net loss
$
(43,907
)
 
$
(61,432
)
 
$
(385,793
)
 
$
(187,317
)
Net loss per share, basic and diluted
$
(0.31
)
 
$
(1.67
)
 
$
(3.38
)
 
$
(5.15
)
Weighted-average shares used in computing net loss per share, basic and diluted
142,857

 
36,836

 
114,141

 
36,406


(1)
Amounts include stock‑based compensation expense as follows (in thousands):
 
Three Months Ended January 31,
 
Year Ended January 31,
 
2018
 
2017
 
2018
 
2017
Cost of revenue – subscription
$
2,683

 
$
375

 
$
24,826

 
$
1,426

Cost of revenue – services
3,429

 
440

 
31,843

 
1,803

Research and development
10,004

 
1,280

 
100,143

 
5,606

Sales and marketing
7,672

 
1,261

 
90,420

 
5,757

General and administrative
4,538

 
1,800

 
42,774

 
7,122

Total stock‑based compensation expense
$
28,326

 
$
5,156

 
$
290,006

 
$
21,714





(2)
Amounts include amortization of acquired intangible assets as follows (in thousands):
 
Three Months Ended January 31,
 
Year Ended January 31,
 
2018
 
2017
 
2018
 
2017
Cost of revenue – subscription
$
622

 
$
514

 
$
2,230

 
$
1,997

Sales and marketing
178

 
431

 
1,493

 
1,723

Total amortization of acquired intangible assets
$
800

 
$
945

 
$
3,723

 
$
3,720

(3) In January 2017, we donated 1,175,063 shares of common stock to the Cloudera Foundation. We recorded a non cash charge of $21.6 million for the fair value of the donated shares, which was recognized in general and administrative expense in the fourth quarter of fiscal 2017.





Cloudera, Inc.
Condensed Consolidated Statements of Operations
(as a percentage of total revenues)
(unaudited)

 
Three Months Ended January 31,
 
Year Ended January 31,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
Subscription
81
 %
 
77
 %
 
82
 %
 
77
 %
Services
19

 
23

 
18

 
23

Total revenue
100

 
100

 
100

 
100

Cost of revenue:(1) (2)
 
 
 
 
 
 
 
Subscription
14

 
14

 
19

 
15

Services
18

 
16

 
24

 
18

Total cost of revenue
32

 
30

 
43

 
33

Gross profit
68

 
70

 
57

 
67

Operating expenses:(1) (2) (3)
 
 
 
 
 
 
 
Research and development
37

 
35

 
59

 
39

Sales and marketing
60

 
76

 
81

 
78

General and administrative
15

 
42

 
23

 
21

Total operating expenses
112

 
153

 
163

 
138

Loss from operations
(44
)
 
(84
)
 
(106
)
 
(72
)
Interest income, net
1

 
1

 
1

 
1

Other income (expense), net
1

 
—

 
—

 
—

Net loss before provision for income taxes
(42
)
 
(83
)
 
(105
)
 
(71
)
Provision for income taxes
—

 
(1
)
 
—

 
(1
)
Net loss
(42)
 %
 
(84)
 %
 
(105)
 %
 
(72)
 %

(1)
Amounts include stock‑based compensation expense as a percentage of total revenue as follows:
 
Three Months Ended January 31,
 
Year Ended January 31,
 
2018
 
2017
 
2018
 
2017
Cost of revenue – subscription
3
%
 
1
%
 
7
%
 
1
%
Cost of revenue – services
3

 
1

 
9

 
1

Research and development
10

 
2

 
27

 
2

Sales and marketing
7

 
1

 
24

 
1

General and administrative
4

 
2

 
12

 
3

Total stock-based compensation expense
27
%
 
7
%
 
79
%
 
8
%

(2)    Amounts include amortization of acquired intangible assets as a percentage of total revenue as follows:
 
Three Months Ended January 31,
 
Year Ended January 31,
 
2018
 
2017
 
2018
 
2017
Cost of revenue – subscription
1
%
 
1
%
 
1
%
 
1
%
Sales and marketing
—

 
—

 
—

 
—

Total amortization of acquired intangible assets
1
%
 
1
%
 
1
%
 
1
%

(3) As a percentage of revenue, the non cash expense recognized for the donation of common stock to the Cloudera Foundation for the three months ended and year ended January 31, 2017 was 29% and 8%, respectively.






Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
January 31, 2018
 
January 31, 2017
ASSETS
 
 
 
CURRENT ASSETS:
 
 
 
Cash and cash equivalents
$
43,247

 
$
74,186

Short-term marketable securities
327,842

 
160,770

Accounts receivable, net
130,579

 
101,549

Prepaid expenses and other current assets
31,470

 
13,197

Total current assets
533,138

 
349,702

Property and equipment, net
17,600

 
13,104

Marketable securities, noncurrent
71,580

 
20,710

Intangible assets, net
5,855

 
7,051

Goodwill
33,621

 
31,516

Restricted cash
18,052

 
15,446

Other assets
9,312

 
5,015

TOTAL ASSETS
$
689,158

 
$
442,544

LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
 
 
 
CURRENT LIABILITIES:
 
 
 
Accounts payable
$
2,722

 
$
3,550

Accrued compensation
41,393

 
33,376

Other accrued liabilities
13,454

 
9,918

Deferred revenue, current portion
257,141

 
192,242

Total current liabilities
314,710

 
239,086

Deferred revenue, less current portion
34,870

 
25,182

Other liabilities
16,601

 
4,345

TOTAL LIABILITIES
366,181

 
268,613

Redeemable convertible preferred stock
—

 
657,687

STOCKHOLDERS’ EQUITY (DEFICIT):
 
 
 
Common stock
7

 
2

Additional paid-in capital
1,385,592

 
192,795

Accumulated other comprehensive loss
(832
)
 
(556
)
Accumulated deficit
(1,061,790
)
 
(675,997
)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)
322,977

 
(483,756
)
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
$
689,158

 
$
442,544





Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

 
Three Months Ended January 31,
 
Year Ended January 31,
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
 
 
Net loss
$
(43,907
)
 
$
(61,432
)
 
$
(385,793
)
 
$
(187,317
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
2,407

 
2,663

 
12,102

 
10,134

Stock-based compensation
28,326

 
5,156

 
290,006

 
21,714

Donation of common stock to the Cloudera Foundation
—

 
21,574

 
—

 
21,574

Accretion and amortization of marketable securities
(145
)
 
447

 
512

 
2,867

Loss on disposal of fixed assets
—

 
—

 
(111
)
 
—

Release of deferred tax valuation allowance
—

 
—

 
(806
)
 
—

Changes in assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable
(64,324
)
 
(53,995
)
 
(28,788
)
 
(52,139
)
Prepaid expenses and other assets
(10,735
)
 
(3,678
)
 
(16,194
)
 
(3,300
)
Accounts payable
1,659

 
(1,191
)
 
(667
)
 
(281
)
Accrued compensation
6,410

 
6,894

 
5,179

 
11,222

Accrued expenses and other liabilities
(1,337
)
 
(3,782
)
 
8,105

 
(284
)
Deferred revenue
59,660

 
55,402

 
74,187

 
59,249

Net cash used in operating activities
(21,986
)
 
(31,942
)
 
(42,268
)
 
(116,561
)
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
Purchases of marketable securities
(106,172
)
 
—

 
(620,329
)
 
(103,776
)
Sales of marketable securities
21,633

 
23,517

 
79,069

 
74,655

Maturities of marketable securities
87,820

 
52,560

 
321,552

 
207,792

Cash used in business combinations, net of cash acquired
—

 
—

 
(1,937
)
 
(2,700
)
Capital expenditures
(3,949
)
 
(451
)
 
(12,954
)
 
(7,385
)
Proceeds from sale of equipment
—

 
—

 
145

 
—

Net cash provided by (used in) investing activities
(668
)
 
75,626

 
(234,454
)
 
168,586

CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
Net proceeds from (payments for) issuance of common stock in initial public offering
—

 
(2,056
)
 
237,422

 
(2,056
)
Net proceeds from issuance of common stock in follow-on offering
(795
)
 
—

 
46,008

 
—

Shares withheld related to net share settlement of restricted stock units
(9,278
)
 
—

 
(59,781
)
 
—

Proceeds from employee stock plans
12,452

 
1,041

 
23,673

 
3,594

Net cash provided by financing activities
2,379

 
(1,015
)
 
247,322

 
1,538

Effect of exchange rate changes
727

 
69

 
1,067

 
75

Net increase (decrease) in cash, cash equivalents and restricted cash
(19,548
)
 
42,738

 
(28,333
)
 
53,638

Cash, cash equivalents and restricted cash — Beginning of year
80,847

 
46,894

 
89,632

 
35,994

Cash, cash equivalents and restricted cash — End of year
$
61,299

 
$
89,632

 
$
61,299

 
$
89,632

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
 
 
 
 
 
 
 
Cash paid for income taxes
$
854

 
$
658

 
$
2,694

 
$
1,689

SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES
 
 
 
 
 
 
 
Purchases of property and equipment in other accrued liabilities
$
1,130

 
$
44

 
$
1,130

 
$
44

Fair value of common stock issued as consideration for business combinations
$
—

 
$
—

 
$
2,081

 
$
—

Deferred offering costs in accounts payable and other accrued liabilities
$
—

 
$
747

 
$
—

 
$
747

Conversion of redeemable convertible preferred stock to common stock
$
—

 
$
—

 
$
657,687

 
$
—






Cloudera, Inc.
Three Months Ended January 31, 2018
GAAP Results Reconciled to non-GAAP Results
(in thousands, except per share amounts)
(unaudited)
 
GAAP
 
Stock-based compensation expense
 
Amortization of acquired intangible assets
 
Non-GAAP
Cost of revenue- Subscription
$
14,729

 
$
(2,683
)
 
$
(622
)
 
$
11,424

Subscription gross margin
83
 %
 
3
%
 
1
%
 
86
 %
Cost of revenue- Services
18,098

 
(3,429
)
 
—

 
14,669

Services gross margin
6
 %
 
18
%
 
—
%
 
24
 %
Gross profit
70,623

 
6,112

 
622

 
77,357

Total gross margin
68
 %
 
6
%
 
1
%
 
75
 %
Research and development
38,925

 
(10,004
)
 
—

 
28,921

Sales and marketing
61,828

 
(7,672
)
 
(178
)
 
53,978

General and administrative
15,548

 
(4,538
)
 
—

 
11,010

Loss from operations
(45,678
)
 
28,326

 
800

 
(16,552
)
Operating margin
(44
)%
 
27
%
 
1
%
 
(16
)%
Net Loss
(43,907
)
 
28,326

 
800

 
(14,781
)
Net loss per share, basic and diluted
$
(0.31
)
 
$
0.20

 
$
0.01

 
$
(0.10
)

Cloudera, Inc.
Three Months Ended January 31, 2017
GAAP Results Reconciled to non-GAAP Results
(in thousands, except per share amounts)
(unaudited) 

 
GAAP
 
Stock-based compensation expense
 
Amortization of acquired intangible assets
 
Donation to Cloudera Foundation
 
Non-GAAP weighted-average shares outstanding
 
Non-GAAP
Cost of revenue- Subscription
$
9,860

 
$
(375
)
 
$
(514
)
 
$
—

 
$
—

 
$
8,971

Subscription gross margin
82
 %
 
1
%
 
1
%
 
—
%
 
—
%
 
84
 %
Cost of revenue- Services
12,315

 
(440
)
 
—

 
—

 
—

 
11,875

Services gross margin
26
 %
 
3
%
 
—
%
 
—
%
 
—
%
 
29
 %
Gross profit
50,652

 
815

 
514

 
—

 
—

 
51,981

Total gross margin
70
 %
 
1
%
 
1
%
 
—
%
 
—
%
 
71
 %
Research and development
25,191

 
(1,280
)
 
—

 
—

 
—

 
23,911

Sales and marketing
55,911

 
(1,261
)
 
(431
)
 
—

 
—

 
54,219

General and administrative
30,598

 
(1,800
)
 
—

 
(21,574
)
 
—

 
7,224

Loss from operations
(61,048
)
 
5,156

 
945

 
21,574

 
—

 
(33,373
)
Operating margin
(84
)%
 
7
%
 
1
%
 
29
%
 
—
%
 
(46
)%
Net Loss
(61,432
)
 
5,156

 
945

 
21,574

 
—

 
(33,757
)
Net loss per share, basic and diluted (1)
$
(1.67
)
 
$
0.14

 
$
0.03

 
$
0.59

 
$
0.61

 
$
(0.30
)

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


Cloudera, Inc.
Twelve Months Ended January 31, 2018
GAAP Results Reconciled to non-GAAP Results
(in thousands)
(unaudited)

 
GAAP
 
Stock-based compensation expense
 
Amortization of acquired intangible assets
 
Non-GAAP weighted-average shares outstanding
 
Non-GAAP
Cost of revenue- Subscription
$
70,902

 
$
(24,826
)
 
$
(2,230
)
 
$
—

 
$
43,846

Subscription gross margin
76
 %
 
8
%
 
1
%
 
—
%
 
85
 %
Cost of revenue- Services
87,133

 
(31,843
)
 
—

 
—

 
55,290

Services gross margin
(31
)%
 
48
%
 
—
%
 
—
%
 
17
 %
Gross profit
209,408

 
56,669

 
2,230

 
—

 
268,307

Total gross margin
57
 %
 
15
%
 
1
%
 
—
%
 
73
 %
Research and development
215,695

 
(100,143
)
 
—

 
—

 
115,552

Sales and marketing
298,467

 
(90,420
)
 
(1,493
)
 
—

 
206,554

General and administrative
85,539

 
(42,774
)
 
—

 
—

 
42,765

Loss from operations
(390,293
)
 
290,006

 
3,723

 
—

 
(96,564
)
Operating margin
(106
)%
 
79
%
 
1
%
 
—
%
 
(26
)%
Net Loss
(385,793
)
 
290,006

 
3,723

 
—

 
(92,064
)
Net loss per share, basic and diluted (1)
$
(3.38
)
 
$
2.54

 
$
0.03

 
$
0.12

 
$
(0.69
)

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

Cloudera, Inc.
Twelve Months Ended January 31, 2017
GAAP Results Reconciled to non-GAAP Results
(in thousands)
(unaudited)

 
GAAP
 
Stock-based compensation expense
 
Amortization of acquired intangible assets
 
Donation to Cloudera Foundation
 
Non-GAAP weighted-average shares outstanding
 
Non-GAAP
Cost of revenue- Subscription
$
38,704

 
$
(1,426
)
 
$
(1,997
)
 
$
—

 
$
—

 
$
35,281

Subscription gross margin
81
 %
 
1
%
 
1
%
 
—
%
 
—
%
 
82
 %
Cost of revenue- Services
48,284

 
(1,803
)
 
—

 
—

 
—

 
46,481

Services gross margin
21
 %
 
3
%
 
—
%
 
—
%
 
—
%
 
24
 %
Gross profit
174,038

 
3,229

 
1,997

 
—

 
—

 
179,264

Total gross margin
67
 %
 
1
%
 
1
%
 
—
%
 
—
%
 
69
 %
Research and development
102,309

 
(5,606
)
 
—

 
—

 
—

 
96,703

Sales and marketing
203,161

 
(5,757
)
 
(1,723
)
 
—

 
—

 
195,681

General and administrative
55,907

 
(7,122
)
 
—

 
(21,574
)
 
—

 
27,211

Loss from operations
(187,339
)
 
21,714

 
3,720

 
21,574

 
—

 
(140,331
)
Operating margin
(72
)%
 
8
%
 
1
%
 
8
%
 
—
%
 
(54
)%
Net Loss
(187,317
)
 
21,714

 
3,720

 
21,574

 
—

 
(140,309
)
Net loss per share, basic and diluted (1)
$
(5.15
)
 
$
0.60

 
$
0.10

 
$
0.59

 
$
2.60

 
$
(1.26
)

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

Cloudera, Inc.
GAAP weighted-average shares reconciled to non-GAAP weighted-average shares
(in thousands)
(unaudited) 

 
Three Months Ended January 31,
 
Year Ended January 31,
 
2018
 
2017
 
2018
 
2017
GAAP weighted-average shares, basic and diluted
142,857

 
36,836

 
114,141

 
36,406

Assumed preferred stock conversion
—

 
74,907

 
18,676

 
74,907

Assumed IPO issuance
—

 
—

 
236

 
—

Non-GAAP weighted-average shares, diluted
142,857

 
111,743

 
133,053

 
111,313



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 Cloudera excludes from its non-GAAP financial measures, Cloudera believes 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.

•
Donation of common stock to the Cloudera Foundation. During the fourth quarter of fiscal 2017, we issued 1,175,063 shares of common stock to the Cloudera Foundation for no consideration. This resulted in a one‑time non‑cash charge of $21.6 million, which was recorded in general and administrative expenses on the consolidated statement of operations. Our management team does not consider this expense when evaluating our operating performance and we do not expect to make future grants of shares to the Cloudera Foundation and therefore consider this charge non‑recurring and exclude the GAAP impact of the donation when evaluating our operating results. 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 weighted-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.





Cloudera, Inc.
Reconciliation of non-GAAP Financial Guidance
(unaudited)
 
Fiscal 2019
(in millions)
Q1
 
FY
GAAP net loss
($58) - (55)

 
($213) - (209)

Stock-based compensation expense (1)
29

 
116

Amortization of acquired intangible assets
1

 
3

Non-GAAP net loss
($28) - (25)

 
($94) - (90)


(1) Stock-based compensation expense is impacted by variables such as stock price and employee behavior, each of which are inherently difficult to forecast.  As a result, the guidance presented above is subject to a number of uncertainties and assumptions that may cause actual results to differ materially.

Investor Relations Contact:
Kevin Cook
investor-relations@cloudera.com
+1 (650) 644-3900

Press Contact:
Deborah Wiltshire
press@cloudera.com
+1 (650) 644-3900