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Cloudera reported third-quarter fiscal 2020 adjusted loss of 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 7 cents but wider than the year-ago quarter’s loss of 2 cents.
Revenues of $198.3 million surged 66.6% year over year and comfortably surpassed the consensus mark of $189 million.
Adjusted annualized recurring revenues (ARR) were $697.4 million, up 13% year over year. Customers with annualized recurring revenues greater than $100,000 were 977, up 24 sequentially.
Quarter Details
The year-over-year growth in revenues was driven by a 65.7% jump in subscription revenues (84.2% of revenues) that totaled $166.9 million. Moreover, services (15.8% of revenues) soared 72% year over year to $31.4 million.
During the quarter, the company launched the Cloudera Data Platform (CDP) on Amazon Web Services and Microsoft Azure. Cloudera also delivered CDP Data Center, its next-generation, on-premises offering.
In the reported quarter, gross margin contracted 210 basis points (bps) on a year-over-year basis to 76.8%. While subscription gross margin contracted 260 bps on a year-over-year basis, services gross margin expanded 240 bps.
Research and development (R&D), sales and marketing (S&M) and general and administrative (G&A) expenses surged 57.8%, 67.9% and 71.4% to $47 million, $83.1 million and $30.5 million, respectively.
Additionally, as a percentage of revenues, S&M and G&A expenses expanded 30 bps and 40 bps, respectively. However, R&D expenses shrank 130 bps from the year-ago quarter.
Loss from operations widened to $8.2 million compared with the year-ago quarter’s loss of $3.1 million.
Balance Sheet & Cash Flow
As of Oct 31, 2019, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $498.9 million compared with $508.6 million reported in the previous quarter.
Operating cash outflow was $6.1 million in third-quarter fiscal 2020 compared with $33 million in second-quarter fiscal 2020.
Guidance
For fourth-quarter fiscal 2020, Cloudera expects revenues between $200 million and $203 million.
Subscription revenues are estimated between $173 million and $176 million.
Non-GAAP net loss is expected between 4 cents and 2 cents per share.
For fiscal 2020, Cloudera expects revenues between $782 million and $785 million. ARR is expected between $700 million and $720 million.
Subscription revenues are estimated between $659 million and $662 million.
Non-GAAP net loss is expected between 21 cents and 19 cents per share.
Moreover, operating cash outflow is expected to be $45-$55 million.
Zacks Rank & Stocks to Consider
Currently, Cloudera carries a Zacks Rank #4 (Sell).
Long-term earnings growth rate for Alteryx, Box and Zendesk is currently pegged at 39.9%, 26% and 29.5%, respectively.
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Cloudera (CLDR) Q3 Earnings Beat Estimates, Revenues Jump Y/Y
Cloudera reported third-quarter fiscal 2020 adjusted loss of 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 7 cents but wider than the year-ago quarter’s loss of 2 cents.
Revenues of $198.3 million surged 66.6% year over year and comfortably surpassed the consensus mark of $189 million.
Adjusted annualized recurring revenues (ARR) were $697.4 million, up 13% year over year. Customers with annualized recurring revenues greater than $100,000 were 977, up 24 sequentially.
Quarter Details
The year-over-year growth in revenues was driven by a 65.7% jump in subscription revenues (84.2% of revenues) that totaled $166.9 million. Moreover, services (15.8% of revenues) soared 72% year over year to $31.4 million.
During the quarter, the company launched the Cloudera Data Platform (CDP) on Amazon Web Services and Microsoft Azure. Cloudera also delivered CDP Data Center, its next-generation, on-premises offering.
Cloudera, Inc. Price, Consensus and EPS Surprise
Cloudera, Inc. price-consensus-eps-surprise-chart | Cloudera, Inc. Quote
In the reported quarter, gross margin contracted 210 basis points (bps) on a year-over-year basis to 76.8%. While subscription gross margin contracted 260 bps on a year-over-year basis, services gross margin expanded 240 bps.
Research and development (R&D), sales and marketing (S&M) and general and administrative (G&A) expenses surged 57.8%, 67.9% and 71.4% to $47 million, $83.1 million and $30.5 million, respectively.
Additionally, as a percentage of revenues, S&M and G&A expenses expanded 30 bps and 40 bps, respectively. However, R&D expenses shrank 130 bps from the year-ago quarter.
Loss from operations widened to $8.2 million compared with the year-ago quarter’s loss of $3.1 million.
Balance Sheet & Cash Flow
As of Oct 31, 2019, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $498.9 million compared with $508.6 million reported in the previous quarter.
Operating cash outflow was $6.1 million in third-quarter fiscal 2020 compared with $33 million in second-quarter fiscal 2020.
Guidance
For fourth-quarter fiscal 2020, Cloudera expects revenues between $200 million and $203 million.
Subscription revenues are estimated between $173 million and $176 million.
Non-GAAP net loss is expected between 4 cents and 2 cents per share.
For fiscal 2020, Cloudera expects revenues between $782 million and $785 million. ARR is expected between $700 million and $720 million.
Subscription revenues are estimated between $659 million and $662 million.
Non-GAAP net loss is expected between 21 cents and 19 cents per share.
Moreover, operating cash outflow is expected to be $45-$55 million.
Zacks Rank & Stocks to Consider
Currently, Cloudera carries a Zacks Rank #4 (Sell).
Alteryx , Box (BOX - Free Report) and Zendesk are stocks worth considering in the same industry. While Alteryx and Box carry a Zacks Rank #2 (Buy), Zendesk sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Alteryx, Box and Zendesk is currently pegged at 39.9%, 26% and 29.5%, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.
These 7 were selected because of their superior potential for immediate breakout.
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