Cloudera Reports Second Quarter Fiscal Year 2019 Financial Results

PALO ALTO, Calif., Sept. 5, 2018 /PRNewswire/ -- Cloudera, Inc. (NYSE: CLDR), the modern platform for machine learning and analytics optimized for the cloud, today reported results for its second quarter fiscal 2019, ended July 31, 2018. Total revenue was $110.3 million, an increase of 23% as compared to the second quarter of fiscal 2018. Subscription revenue was $93.1 million, an increase of 26% as compared to the second quarter of fiscal 2018. Subscription revenue represented 84% of total revenue, up from 82% in the second quarter of fiscal 2018.

"In Q2 we made substantial progress in our product and go-to-market transitions, delivering strong financial results in the quarter and accomplishing many of our goals for sustained success in our market," said Tom Reilly, chief executive officer. "We continue to innovate in highly differentiating ways. With three new modern data warehouse offerings, we are well-positioned to disrupt the legacy data warehouse industry."

GAAP loss from operations for the second quarter of fiscal 2019 was $33.9 million, compared to a GAAP loss from operations of $65.7 million for the second quarter of fiscal 2018. Non-GAAP loss from operations for the second quarter of fiscal 2019 was $12.7 million, compared to a non-GAAP loss from operations of $25.3 million in the second quarter of fiscal 2018.

Operating cash flow for the second quarter of fiscal 2019 was negative $23.6 million compared to operating cash flow of negative $22.8 million in the second quarter of fiscal 2018.

GAAP net loss per share for the second quarter of fiscal 2019 was $0.22 per share, based on weighted-average shares outstanding of 149.5 million shares, compared to a GAAP net loss per share in the second quarter of fiscal 2018 of $0.48 per share, based on weighted-average shares outstanding of 134.5 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 second quarter of fiscal 2019 was $0.08 per share, based on non-GAAP weighted-average shares outstanding of 149.5 million shares, compared to non-GAAP net loss per share in the second quarter of fiscal 2018 of $0.17 per share, based on non-GAAP weighted-average shares outstanding of 136.5 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 July 31, 2018, the company had total cash, cash equivalents, marketable securities and restricted cash of $458.2 million.

Recent Business and Financial Highlights

• 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

Business Outlook

The outlook for the third quarter of fiscal 2019, ending October 31, 2018, is:

• 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

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

• 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

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its second quarter fiscal 2019 results and the outlook for its third 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: 8388004

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 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.

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 "Business Outlook" for our third quarter of fiscal 2019 and our 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 Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC), 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, non-GAAP operating loss margin, 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), and amortization of acquired intangible assets 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. This non-GAAP measure includes the assumed conversion of all outstanding shares of preferred stock to common stock and the impact of anti-dilutive restricted stock units and stock options outstanding, on a weighted basis.

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.

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.
• 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.

SOURCE Cloudera, Inc.