EX-99.1 2 q2-19cldrexhibit991.htm EXHIBIT 99.1 Exhibit


Cloudera Reports Second Quarter Fiscal Year 2019 Financial Results


•
Q2 revenue up 23% year-over-year
•
Q2 subscription revenue up 26% year-over-year
•
568 customers greater than $100,000 annual recurring revenue

PALO ALTO, Calif. September 5, 2018 — 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
(https://www.cloudera.com/more/news-and-blogs/press-releases/2018-08-28-cloudera-leads-the-way-in-data-warehousing-for-hybrid-cloud.html)
•
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
(https://www.cloudera.com/more/news-and-blogs/press-releases/2018-08-28-cloudera-leads-the-way-in-data-warehousing-for-hybrid-cloud.html)
•
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
(https://www.cloudera.com/more/news-and-blogs/press-releases/2018-08-29-cloudera-advances-data-warehousing-leadership.html)

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.








Cloudera, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

 
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





Cloudera, Inc.
Condensed Consolidated Statements of Operations
(as a percentage of total revenues)
(unaudited)

 
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
%

(2)    Amounts include amortization of acquired intangible assets 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
1
%
 
1
%
 
1
%
 
1
%
Sales and marketing
—

 
—

 
—

 
—

Total amortization of acquired intangible assets
1
%
 
1
%
 
1
%
 
1
%





Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
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





Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
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






Cloudera, Inc.
Three Months Ended July 31, 2018
GAAP Results Reconciled to non-GAAP Results
(in thousands, except per share amounts)
(unaudited)
 
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
)

Cloudera, Inc.
Three Months Ended July 31, 2017
GAAP Results Reconciled to non-GAAP Results
(in thousands, except per share amounts)
(unaudited) 

 
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



GAAP weighted-average shares reconciled to non-GAAP weighted-average shares
(in thousands)
(unaudited) 

 
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



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.





Cloudera, Inc.
Reconciliation of non-GAAP Financial Guidance
(unaudited)
 
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)


(1) Stock-based compensation expense is impacted by variables such as stock price and employee behavior, each of which are inherently difficult to forecast.  As a result, the guidance presented above is subject to a number of uncertainties and assumptions that may cause actual results to differ materially.

Investor Relations Contact:
Kevin Cook
investor-relations@cloudera.com
+1 (650) 644-3900

Press Contact:
Melinda Venable
press@cloudera.com
+1 (650) 644-3900