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Cloudera's (CLDR) Q2 Earnings and Revenues Increase Y/Y

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Cloudera reported second-quarter fiscal 2021 adjusted earnings of 10 cents per share, which beat the Zacks Consensus Estimate by 42.9%. The company had reported a loss of 2 cents per share in the year-ago quarter. The robust bottom-line improvement was mainly driven by steady revenue growth and efficient cost management.

Revenues of $214.3 million beat the consensus mark by 3% and increased 9% year over year driven by rapid adoption of its cloud-based products and services.

The company reported better-than-guided second-quarter fiscal 2021 results. Annualized recurring revenues (ARR) were $739 million, up 12% year over year.

Similar to its Zacks Internet-Software industry peers like Anaplan , Nice (NICE - Free Report) and Zuora (ZUO - Free Report) , Cloudera benefited from subscription-based business model. Subscription revenues (89.4% of revenues) rose 16.7% year over year to $191.1 million, benefiting from rapid adoption of its cloud-based products and services.

Anaplan’s second-quarter fiscal 2021 subscription revenues (91.1% of total revenues) soared 32% year over year to $97.1 million. NICE’s second-quarter 2020 cloud revenues rose 29.6% year over year to $183.9 million. Zuora reported second-quarter fiscal 2021 subscription revenues of $58.3 million, an increase of 15.1% year over year.

Cloudera has underperformed Nice, Anaplan and the S&P 500 while outperforming Zuora on a year-to-date basis.

Year to Date Performance

Quarter Details

Cloudera’s services (10.6% of revenues) declined 30% year over year to $22.8 million mainly due to coronavirus-led global lockdown.

In the reported quarter, non-GAAP gross margin expanded 480 basis points (bps) to 81.4% on a year-over-year basis. Non-GAAP subscription gross margin expanded 250 bps to 88.9% year over year. Meanwhile, non-GAAP services gross margin contracted 880 bps on a year-over-year basis to 18%.

Research and development (R&D), sales and marketing (S&M) and general and administrative (G&A) expenses declined 4.3%, 5.9% and 21.5% on a year-over-year basis to $45.2 million, $75.1 million and $24.3 million, respectively. Moreover, as a percentage of revenues, R&D, S&M and G&A expenses declined 290 bps, 550 bps and 440 bps, respectively.

For the second quarter of fiscal 2021, this Zacks Rank #3 (Hold) company reported non-GAAP income from operations of $29.8 million against non-GAAP loss from operations of $7.4 million reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Balance Sheet & Cash Flow

As of Jul 31, 2020, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $568.7 million compared with $518.7 million reported in the previous quarter.

Moreover, reported operating cash outflow was $32.4 million compared with $68.4 million in the previous quarter.

Guidance

Third-Quarter Fiscal 2021

Cloudera expects revenues between $207 million and $210 million. The Zacks Consensus Estimate for revenues is currently pegged at $203.4 million, which indicates year-over-year growth of 2.5%.

Subscription revenues are estimated between $187 million and $190 million.

Non-GAAP net earnings are expected between 8 cents and $1 per share. The Zacks Consensus Estimate is pegged at 7 cents per share.

Fiscal 2021

Cloudera expects revenues between $839 million and $853 million. The Zacks Consensus Estimate for revenues is currently pegged at $838.7 million, which suggests year-over-year growth of 5.6%.

Subscription revenues are estimated between $755 million and $765 million.

Non-GAAP net earnings are expected between 32 cents to 35 cents. The Zacks Consensus Estimate for earnings is pegged at 28 cents per share.

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