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Cloudera (CLDR) to Report Q3 Earnings: What's in Store?

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Cloudera is set to release third-quarter fiscal 2021 results on Dec 3.

For the quarter, the company expects total revenues between $207 million and $210 million. On a non-GAAP basis, earnings are expected between 8 cents and $1 per share.

The Zacks Consensus Estimate for revenues is pegged at $208.7 million, suggesting growth of 5.3% from the figure reported in the year-ago quarter.

The consensus mark for earnings has remained steady at 9 cents per share over the past 30 days. Cloudera had reported a loss of 29 cents in the year-ago quarter.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 175%.

Let’s see how things have shaped up for this announcement.

Cloudera, Inc. Price and EPS Surprise

Cloudera, Inc. Price and EPS Surprise

Cloudera, Inc. price-eps-surprise | Cloudera, Inc. Quote

Factors to Watch

Cloudera’s services business is more likely to have been affected by the coronavirus-led business uncertainties than its subscription business, which benefits from a recurring-revenue model.

Notably, the company expects subscription revenues in the range of $187 million to $190 million, indicating 13% year-over-year growth. However, services revenues are expected at or close to the year-ago quarter levels until the economy recovers.

Moreover, Cloudera’s clientele comprises large global enterprises with strong credit profiles, thus ensuring timely payments. This bodes well for top-line growth.

Further, increased importance of data, data analysis and data security is expected to have aided the adoption of Cloudera’s hybrid cloud solutions among the pandemic.

Markedly, the enterprise data cloud company announced the general availability of Cloudera Data Platform Private Cloud (CDP Private Cloud) in the to-be reported quarter. Overall, CDP Private Cloud can deliver up to 50% more analytics for the same data center investment.

According to IDC Cloud Pulse Report, 84% of customers are repatriating workloads from the public cloud with 67% of applications in both public and private cloud environments. Cloudera is expected to have benefited from the adoption of CDP Private Cloud, which is built for hybrid cloud, seamlessly connecting on-premises environments to public clouds with consistent, built-in security and governance.

Additionally, Cloudera’s partnership with International Business Machines (IBM - Free Report) and the launch of CDP on Amazon’s (AMZN - Free Report) cloud arm Amazon Web Services, Microsoft’s (MSFT - Free Report) Azure and Google cloud platform are expected to have helped this Zacks Rank #3 (Hold) company strengthen its clientele in the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The third-quarter fiscal 2021 top line is expected to have benefited from the aforementioned tailwinds.

Further, stringent cost control including reduced usage of outside contractors is expected to have benefited the bottom line in the to-be-reported quarter.

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