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)) |
Number | Description | |
99.1 |
Date: September 5, 2018 | CLOUDERA, INC | |
By: | /s/ David Middler | |
Name: | David Middler | |
Title: | Chief Legal Officer |
• | Q2 revenue up 23% year-over-year |
• | Q2 subscription revenue up 26% year-over-year |
• | 568 customers greater than $100,000 annual recurring revenue |
• | Subscription revenue was up 26% year-over-year to $93.1 million |
• | Subscription revenue represented 84% of total revenue, up from 82% in the second quarter of fiscal 2018 |
• | Non-GAAP subscription gross margin for the quarter was 87%, up from 85% in the second quarter of fiscal 2018 |
• | Customers with annual recurring revenue greater than $100,000 were 568, up 30 for the quarter |
• | Dollar-based net expansion rate was 128% for the quarter |
• | Non-GAAP operating loss improved more than 16 percentage points in the second quarter compared to the year-ago period |
• | Introduced Cloudera Altus Data Warehouse, a modern data warehouse as-a-service, available on Microsoft Azure and AWS |
• | Introduced Cloudera Data Warehouse, a modern data warehouse for self-service analytics, built with a hybrid cloud-native architecture that handles 50PB data workloads and enables hybrid compute, storage, and control for workload portability across public clouds and enterprise data centers |
• | Introduced Cloudera Workload XM, a new intelligent workload experience management cloud service that provides end-to-end visibility across the entire data warehouse, helping improve performance, reduce downtime and optimize utilization across the complete lifecycle of analytics workloads |
• | Total revenue in the range of $113 million to $114 million, representing approximately 20% year-over-year growth |
• | Subscription revenue in the range of $96 million to $97 million, representing approximately 24% year-over-year growth |
• | Non-GAAP net loss per share in the range of $0.12 to $0.10 per share |
• | Weighted-average shares outstanding of approximately 152 million shares |
• | Total revenue in the range of $440 million to $450 million, representing approximately 21% year-over-year growth |
• | Subscription revenue in the range of $372 million to $377 million, representing approximately 24% year-over-year growth |
• | Operating cash flow of approximately negative $35 million |
• | Non-GAAP net loss per share in the range of $0.53 to $0.50 per share |
• | Weighted-average shares outstanding of approximately 151 million shares |
• | Participant Toll Free Number: +1-833-231-7247 |
• | Participant International Number: +1-647-689-4091 |
• | Conference ID: 8388004 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue: | |||||||||||||||
Subscription | $ | 93,123 | $ | 73,986 | $ | 179,022 | $ | 138,657 | |||||||
Services | 17,215 | 15,842 | 34,023 | 30,767 | |||||||||||
Total revenue | 110,338 | 89,828 | 213,045 | 169,424 | |||||||||||
Cost of revenue:(1) (2) | |||||||||||||||
Subscription | 14,961 | 15,215 | 30,768 | 41,687 | |||||||||||
Services | 17,171 | 16,755 | 34,715 | 50,395 | |||||||||||
Total cost of revenue | 32,132 | 31,970 | 65,483 | 92,082 | |||||||||||
Gross profit | 78,206 | 57,858 | 147,562 | 77,342 | |||||||||||
Operating expenses:(1) (2) | |||||||||||||||
Research and development | 39,800 | 42,844 | 83,464 | 138,675 | |||||||||||
Sales and marketing | 55,166 | 62,135 | 114,943 | 172,578 | |||||||||||
General and administrative | 17,090 | 18,564 | 33,426 | 54,114 | |||||||||||
Total operating expenses | 112,056 | 123,543 | 231,833 | 365,367 | |||||||||||
Loss from operations | (33,850 | ) | (65,685 | ) | (84,271 | ) | (288,025 | ) | |||||||
Interest income, net | 2,173 | 1,440 | 3,980 | 2,089 | |||||||||||
Other income (expense), net | (907 | ) | 817 | (2,028 | ) | 839 | |||||||||
Net loss before provision for income taxes | (32,584 | ) | (63,428 | ) | (82,319 | ) | (285,097 | ) | |||||||
Provision for income taxes | (791 | ) | (801 | ) | (2,097 | ) | (1,451 | ) | |||||||
Net loss | $ | (33,375 | ) | $ | (64,229 | ) | $ | (84,416 | ) | $ | (286,548 | ) | |||
Net loss per share, basic and diluted | $ | (0.22 | ) | $ | (0.48 | ) | $ | (0.57 | ) | $ | (3.28 | ) | |||
Weighted-average shares used in computing net loss per share, basic and diluted | 149,505 | 134,506 | 148,115 | 87,293 |
(1) | Amounts include stock‑based compensation expense as follows (in thousands): |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cost of revenue – subscription | $ | 2,496 | $ | 3,693 | $ | 5,044 | $ | 19,393 | |||||||
Cost of revenue – services | 2,776 | 3,890 | 5,250 | 24,227 | |||||||||||
Research and development | 8,336 | 13,128 | 18,197 | 81,029 | |||||||||||
Sales and marketing | 2,698 | 12,137 | 8,777 | 72,678 | |||||||||||
General and administrative | 4,169 | 6,603 | 8,573 | 33,206 | |||||||||||
Total stock‑based compensation expense | $ | 20,475 | $ | 39,451 | $ | 45,841 | $ | 230,533 |
(2) | Amounts include amortization of acquired intangible assets as follows (in thousands): |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Cost of revenue – subscription | $ | 622 | $ | 510 | $ | 1,244 | $ | 1,024 | |||||||
Sales and marketing | 35 | 431 | 70 | 861 | |||||||||||
Total amortization of acquired intangible assets | $ | 657 | $ | 941 | $ | 1,314 | $ | 1,885 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Revenue: | |||||||||||
Subscription | 84 | % | 82 | % | 84 | % | 82 | % | |||
Services | 16 | 18 | 16 | 18 | |||||||
Total revenue | 100 | 100 | 100 | 100 | |||||||
Cost of revenue:(1) (2) | |||||||||||
Subscription | 13 | 17 | 15 | 24 | |||||||
Services | 16 | 19 | 16 | 30 | |||||||
Total cost of revenue | 29 | 36 | 31 | 54 | |||||||
Gross profit | 71 | 64 | 69 | 46 | |||||||
Operating expenses:(1) (2) | |||||||||||
Research and development | 37 | 48 | 39 | 82 | |||||||
Sales and marketing | 50 | 69 | 54 | 102 | |||||||
General and administrative | 15 | 20 | 16 | 32 | |||||||
Total operating expenses | 102 | 137 | 109 | 216 | |||||||
Loss from operations | (31 | ) | (73 | ) | (40 | ) | (170 | ) | |||
Interest income, net | 2 | 1 | 2 | 1 | |||||||
Other income (expense), net | (1 | ) | 1 | (1 | ) | 1 | |||||
Net loss before provision for income taxes | (30 | ) | (71 | ) | (39 | ) | (168 | ) | |||
Provision for income taxes | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||
Net loss | (31) | % | (72) | % | (40) | % | (169) | % |
(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, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Cost of revenue – subscription | 2 | % | 4 | % | 2 | % | 11 | % | |||
Cost of revenue – services | 3 | 4 | 3 | 14 | |||||||
Research and development | 8 | 15 | 9 | 48 | |||||||
Sales and marketing | 2 | 14 | 4 | 43 | |||||||
General and administrative | 4 | 7 | 4 | 20 | |||||||
Total stock-based compensation expense | 19 | % | 44 | % | 22 | % | 136 | % |
Three Months Ended July 31, | Six Months Ended July 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 | % |
July 31, 2018 | January 31, 2018 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 52,970 | $ | 43,247 | |||
Short-term marketable securities | 325,413 | 327,842 | |||||
Accounts receivable, net | 96,364 | 130,579 | |||||
Prepaid expenses and other current assets | 20,534 | 31,470 | |||||
Total current assets | 495,281 | 533,138 | |||||
Property and equipment, net | 22,089 | 17,600 | |||||
Marketable securities, noncurrent | 61,747 | 71,580 | |||||
Intangible assets, net | 4,540 | 5,855 | |||||
Goodwill | 33,621 | 33,621 | |||||
Restricted cash | 18,024 | 18,052 | |||||
Other assets | 7,696 | 9,312 | |||||
TOTAL ASSETS | $ | 642,998 | $ | 689,158 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 2,543 | $ | 2,722 | |||
Accrued compensation | 31,286 | 41,393 | |||||
Other accrued liabilities | 13,871 | 13,454 | |||||
Deferred revenue, current portion | 253,779 | 257,141 | |||||
Total current liabilities | 301,479 | 314,710 | |||||
Deferred revenue, less current portion | 30,500 | 34,870 | |||||
Other liabilities | 19,745 | 16,601 | |||||
TOTAL LIABILITIES | 351,724 | 366,181 | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Common stock | 8 | 7 | |||||
Additional paid-in capital | 1,438,493 | 1,385,592 | |||||
Accumulated other comprehensive loss | (1,021 | ) | (832 | ) | |||
Accumulated deficit | (1,146,206 | ) | (1,061,790 | ) | |||
TOTAL STOCKHOLDERS’ EQUITY | 291,274 | 322,977 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 642,998 | $ | 689,158 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net loss | $ | (33,375 | ) | $ | (64,229 | ) | $ | (84,416 | ) | $ | (286,548 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization | 2,676 | 3,352 | 5,068 | 6,994 | |||||||||||
Stock-based compensation | 20,475 | 39,451 | 45,841 | 230,533 | |||||||||||
Accretion and amortization of marketable securities | (210 | ) | (128 | ) | (195 | ) | 414 | ||||||||
Gain on disposal of fixed assets | — | — | (20 | ) | — | ||||||||||
Changes in assets and liabilities: | |||||||||||||||
Accounts receivable | (31,647 | ) | (31,783 | ) | 34,366 | 16,744 | |||||||||
Prepaid expenses and other assets | 4,130 | (740 | ) | 12,297 | 639 | ||||||||||
Accounts payable | 704 | 3,595 | 583 | 1,674 | |||||||||||
Accrued compensation | 5,190 | 7,684 | (9,437 | ) | (4,983 | ) | |||||||||
Accrued expenses and other liabilities | 2,945 | 1,828 | 3,999 | 2,970 | |||||||||||
Deferred revenue | 5,559 | 18,125 | (7,276 | ) | 13,697 | ||||||||||
Net cash provided by (used in) operating activities | (23,553 | ) | (22,845 | ) | 810 | (17,866 | ) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Purchases of marketable securities and other investments | (138,133 | ) | (276,807 | ) | (252,376 | ) | (387,154 | ) | |||||||
Sales of marketable securities and other investments | 19,038 | 11,523 | 32,294 | 43,198 | |||||||||||
Maturities of marketable securities and other investments | 116,690 | 66,184 | 230,903 | 117,604 | |||||||||||
Capital expenditures | (3,449 | ) | (1,796 | ) | (7,690 | ) | (1,971 | ) | |||||||
Proceeds from sale of equipment | — | — | 27 | — | |||||||||||
Net cash provided by (used in) investing activities | (5,854 | ) | (200,896 | ) | 3,158 | (228,323 | ) | ||||||||
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 | 4,249 | 4,450 | 11,330 | 5,932 | |||||||||||
Shares withheld related to net share settlement of restricted stock units | (3,482 | ) | — | (4,388 | ) | — | |||||||||
Net cash provided by financing activities | 767 | 243,783 | 6,942 | 243,618 | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (834 | ) | (78 | ) | (1,215 | ) | (77 | ) | |||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (29,474 | ) | 19,964 | 9,695 | (2,648 | ) | |||||||||
Cash, cash equivalents and restricted cash — Beginning of period | 100,468 | 67,020 | 61,299 | 89,632 | |||||||||||
Cash, cash equivalents and restricted cash — End of period | $ | 70,994 | $ | 86,984 | $ | 70,994 | $ | 86,984 | |||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||||||
Cash paid for income taxes | $ | 737 | $ | 723 | $ | 1,898 | $ | 1,352 | |||||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||||||||||
Purchases of property and equipment in other accrued liabilities | $ | 561 | $ | 3,054 | $ | 561 | $ | 3,054 | |||||||
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 | ||||||||||||
Cost of revenue- Subscription | $ | 14,961 | $ | (2,496 | ) | $ | (622 | ) | $ | 11,843 | |||||
Subscription gross margin | 84 | % | 3 | % | 1 | % | 87 | % | |||||||
Cost of revenue- Services | 17,171 | (2,776 | ) | — | 14,395 | ||||||||||
Services gross margin | — | % | 16 | % | — | % | 16 | % | |||||||
Gross profit | 78,206 | 5,272 | 622 | 84,100 | |||||||||||
Total gross margin | 71 | % | 5 | % | 1 | % | 76 | % | |||||||
Research and development | 39,800 | (8,336 | ) | — | 31,464 | ||||||||||
Sales and marketing | 55,166 | (2,698 | ) | (35 | ) | 52,433 | |||||||||
General and administrative | 17,090 | (4,169 | ) | — | 12,921 | ||||||||||
Loss from operations | (33,850 | ) | 20,475 | 657 | (12,718 | ) | |||||||||
Operating margin | (31 | )% | 19 | % | 1 | % | (12 | )% | |||||||
Net loss | (33,375 | ) | 20,475 | 657 | (12,243 | ) | |||||||||
Net loss per share, basic and diluted | $ | (0.22 | ) | $ | 0.14 | $ | — | $ | (0.08 | ) |
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 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
GAAP weighted-average shares, basic and diluted | 149,505 | 134,506 | 148,115 | 87,293 | |||||||
Assumed preferred stock conversion | — | 1,628 | — | 37,661 | |||||||
Assumed IPO issuance | — | 375 | — | 477 | |||||||
Non-GAAP weighted-average shares, diluted | 149,505 | 136,509 | 148,115 | 125,431 |
• | 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 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. |
Fiscal 2019 | |||||
(in millions) | Q3 | FY | |||
GAAP net loss | ($42) - (39) | ($178) - (174) | |||
Stock-based compensation expense (1) | 23 | 95 | |||
Amortization of acquired intangible assets | 1 | 3 | |||
Non-GAAP net loss | ($18) - (15) | ($80) - (76) |