EX-99.1 2 q3-20cldrexhibit991.htm EXHIBIT 99.1 Exhibit


Cloudera Reports Third Quarter Fiscal Year 2020 Financial Results


PALO ALTO, Calif. December 5, 2019 — Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its third quarter of fiscal year 2020, ended October 31, 2019. Total revenue for the third quarter was $198.3 million, and subscription revenue was $166.9 million. Annualized Recurring Revenue grew 13% year-over-year.

“I am pleased to report that we executed well in Q3, building on the positive momentum generated in Q2.  We delivered strong operating and financial results across the board and launched the Cloudera Data Platform to a great reception from customers, partners and industry analysts,” said Marty Cole, chairman of the board and interim chief executive officer, Cloudera. “Customers now have a highly competitive set of cloud-native services from Cloudera, and we've made hybrid cloud data management and analytics a reality via the industry's first enterprise data cloud.”

Except where noted, all numbers reported for prior periods are presented for Cloudera on a standalone basis, since there is no comparative year-over-year financial information for the combined company.

GAAP loss from operations for the third quarter of fiscal 2020 was $82.5 million, compared to a GAAP loss from operations of $25.7 million for the third quarter of fiscal 2019.

Non-GAAP loss from operations for the third quarter of fiscal 2020 was $8.2 million, compared to a non-GAAP loss from operations of $3.1 million for the third quarter of fiscal 2019.

Operating cash flow for the third quarter of fiscal 2020, which includes $6.1 million of merger-related payments, was negative $5.9 million, compared to operating cash flow of negative $6.8 million for the third quarter of fiscal 2019.

GAAP net loss per share for the third quarter of fiscal 2020 was $0.29 per share, based on weighted-average shares outstanding of 283.3 million shares, compared to a GAAP net loss per share of $0.17 per share for the third quarter of fiscal 2019, based on weighted-average shares outstanding of 152.2 million shares. See financial statement tables below for additional information regarding historical and forward-looking stock-based compensation expense and shares outstanding.

Non-GAAP net loss per share for the third quarter of fiscal 2020 was $0.03 per share, based on weighted-average shares outstanding of 283.3 million shares, compared to a non-GAAP net loss per share of $0.02 per share for the third quarter of fiscal 2019, based on weighted-average shares outstanding of 152.2 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 October 31, 2019, the company had total cash, cash equivalents, marketable securities and restricted cash of $502.2 million.




Recent Business and Financial Highlights

•
Annualized Recurring Revenue was $697.4 million, representing 13% year-over-year growth
•
Non-GAAP subscription gross margin for the quarter was 86%
•
Operating cash flow was negative $5.9 million, including $6.1 million of merger-related payments
•
Customers with Annualized Recurring Revenue greater than $100,000 were 977, up 24 from the prior quarter
•
Launched the Cloudera Data Platform (CDP) on Amazon Web Services and Microsoft Azure
•
Delivered CDP Data Center, our next-generation on-premises offering, representing the strongest elements of the former Cloudera and Hortonworks platforms and new innovations for better scalability, performance and private cloud readiness
•
Cloudera debuted as a Strong Performer in The Forrester Wave: Streaming Analytics, Q3 2019 and was named one of “The 11 providers that matter most” in streaming analytics

Business Outlook

The outlook for the fourth quarter of fiscal 2020, ending January 31, 2020, is:

•
Total revenue in the range of $200 million to $203 million
•
Subscription revenue in the range of $173 million to $176 million
•
Non-GAAP net loss per share in the range of $0.04 to $0.02 per share
•
Weighted-average shares outstanding of approximately 294 million shares

The outlook for fiscal 2020, ending January 31, 2020, is:

•
Annualized Recurring Revenue in the range of $700 million to $720 million
•
Total revenue in the range of $782 million to $785 million
•
Subscription revenue in the range of $659 million to $662 million
•
Operating cash flow in the range of negative $55 million to negative $45 million, including $60 million of merger-related payments
•
Non-GAAP net loss per share in the range of $0.21 to $0.19 per share
•
Weighted-average shares outstanding of approximately 281 million shares

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its third quarter fiscal 2020 results and the outlook for its fourth quarter of fiscal 2020 and full year fiscal 2020 at 2:00 PM 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: 4252879

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. Cloudera delivers an enterprise data cloud for any data, anywhere, from the Edge to AI. Powered by the relentless innovation of the open source community, Cloudera advances digital transformation for the world’s largest enterprises. 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 and LinkedIn: linkedin.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 statements about our short-term and long-term goals and targets, including expectations regarding the acceptance by our enterprise customers of enterprise data cloud and the Cloudera Data Platform, and our “Business Outlook” for our fourth quarter of fiscal 2020 and our full year fiscal 2020 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 Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC), and in our other SEC filings. You can obtain copies of the company’s SEC filings on the SEC’s website at www.sec.gov. 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 and audited 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 cost of revenue-subscription, non-GAAP cost of revenue-services, non-GAAP subscription gross margin, non-GAAP services gross margin, non-GAAP gross margin, non-GAAP gross profit, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP operating margin, non-GAAP net loss, 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 and audited condensed consolidated statement of operations.

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.

Annualized Recurring Revenue

Annualized Recurring Revenue (“ARR”) is a non-GAAP performance metric, which we use to assess the health and trajectory of our business. ARR equals the annualized value of all recurring subscription contracts with active entitlements as of the end of the period, including pre-merger Hortonworks contracts. ARR does not reflect non-recurring partner revenue, subscription revenue with certain related parties, custom engineering and premium add-on support.






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

 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2019
 
2018
(As Adjusted)*
 
2019
 
2018
(As Adjusted)*
Revenue:
 
 
 
 
 
 
 
Subscription
$
166,932

 
$
100,757

 
$
485,872

 
$
283,318

Services
31,360

 
18,231

 
96,599

 
52,108

Total revenue
198,292

 
118,988

 
582,471

 
335,426

Cost of revenue:(1) (2)
 
 
 
 
 
 


Subscription
30,224

 
13,996

 
88,636

 
44,764

Services
27,404

 
15,980

 
87,355

 
50,695

Total cost of revenue
57,628

 
29,976

 
175,991

 
95,459

Gross profit
140,664

 
89,012

 
406,480

 
239,967

Operating expenses:(1) (2)
 
 
 
 
 
 
 
Research and development
66,657

 
37,563

 
196,572

 
121,027

Sales and marketing
117,783

 
55,055

 
349,657

 
170,246

General and administrative 
38,691

 
22,067

 
135,568

 
55,493

Total operating expenses
223,131

 
114,685

 
681,797

 
346,766

Loss from operations
(82,467
)
 
(25,673
)
 
(275,317
)
 
(106,799
)
Interest income, net
2,756

 
2,440

 
9,203

 
6,420

Other income (expense), net
(46
)
 
(1,126
)
 
291

 
(3,154
)
Loss before provision for income taxes
(79,757
)
 
(24,359
)
 
(265,823
)
 
(103,533
)
Provision for income taxes
(2,365
)
 
(1,498
)
 
(6,472
)
 
(3,595
)
Net loss
$
(82,122
)
 
$
(25,857
)
 
$
(272,295
)
 
$
(107,128
)
Net loss per share, basic and diluted
$
(0.29
)
 
$
(0.17
)
 
$
(0.98
)
 
$
(0.72
)
Weighted-average shares used in computing net loss per share, basic and diluted
283,267

 
152,245

 
277,260

 
149,507


* As adjusted to reflect the impact of the full retrospective adoption of Topic 606.

(1)
Amounts include stock‑based compensation expense as follows (in thousands):

 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
Cost of revenue – subscription
$
4,306

 
$
2,016

 
$
12,314

 
$
7,060

Cost of revenue – services
4,620

 
2,290

 
13,076

 
7,540

Research and development
19,697

 
7,805

 
55,991

 
26,002

Sales and marketing
17,400

 
5,504

 
46,199

 
14,281

General and administrative
8,191

 
4,275

 
37,238

 
12,848

Total stock-based compensation expense
$
54,214

 
$
21,890

 
$
164,818

 
$
67,731


(2)
Amounts include amortization of acquired intangible assets as follows (in thousands):

 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2019
 
2018
 
2019
 
2018
Cost of revenue – subscription
$
2,761

 
$
622

 
$
8,358

 
$
1,866

Sales and marketing
17,264

 
35

 
51,764

 
105

Total amortization of acquired intangible assets
$
20,025

 
$
657

 
$
60,122

 
$
1,971








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

 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2019
 
2018
(As Adjusted)*
 
2019
 
2018
(As Adjusted)*
Revenue:
 
 
 
 
 
 
 
Subscription
84
 %
 
85
 %
 
83
 %
 
84
%
Services
16

 
15

 
17

 
16

Total revenue
100

 
100

 
100

 
100

Cost of revenue(1) (2): 
 
 
 
 
 
 
 
Subscription
15

 
12

 
15

 
13

Services
14

 
13

 
15

 
15

Total cost of revenue
29

 
25

 
30

 
28

Gross margin
71

 
75

 
70

 
72

Operating expenses(1) (2):
 
 
 
 
 
 
 
Research and development
34

 
32

 
34

 
36

Sales and marketing
59

 
46

 
60

 
51

General and administrative
20

 
19

 
23

 
17

Total operating expenses
113

 
97

 
117

 
104

Loss from operations
(42
)
 
(22
)
 
(47
)
 
(32
)
Interest income, net
1

 
2

 
2

 
2

Other income (expense), net
—

 
(1
)
 
—

 
(1
)
Loss before provision for income taxes
(41
)
 
(21
)
 
(45
)
 
(31
)
Provision for income taxes
(1
)
 
(1
)
 
(2
)
 
(1
)
Net loss
(42
)%
 
(22
)%
 
(47
)%
 
(32
)%

* As adjusted to reflect the impact of the full retrospective adoption of Topic 606.

(1)
Amounts include stock‑based compensation expense as a percentage of total revenue as follows:
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2019
 
2018
 
2019
 
2018
Cost of revenue – subscription
2
%
 
2
%
 
2
%
 
2
%
Cost of revenue – services
2

 
2

 
2

 
2

Research and development
10

 
7

 
10

 
8

Sales and marketing
9

 
5

 
8

 
4

General and administrative
4

 
4

 
6

 
4

Total stock-based compensation expense
27
%
 
20
%
 
28
%
 
20
%

(2)    Amounts include amortization of acquired intangible assets as a percentage of total revenue as follows:
    
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2019
 
2018
 
2019
 
2018
Cost of revenue – subscription
1
%
 
1
%
 
1
%
 
1
%
Sales and marketing
9

 
—

 
9

 
—

Total amortization of acquired intangible assets
10
%
 
1
%
 
10
%
 
1
%






Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
October 31,
2019
 
January 31,
2019
ASSETS
 
 
 
CURRENT ASSETS:
 
 
 
Cash and cash equivalents
$
113,203

 
$
158,672

Marketable securities, current
292,812

 
322,005

Accounts receivable, net
162,454

 
242,980

Contract assets
5,522

 
4,824

Deferred costs
42,987

 
32,100

Prepaid expenses and other current assets
28,968

 
38,281

Total current assets
645,946

 
798,862

Property and equipment, net
24,524

 
27,619

Marketable securities, non-current
92,867

 
56,541

Intangible assets, net
625,137

 
679,326

Goodwill
590,361

 
586,456

Deferred costs, non-current
29,648

 
36,913

Restricted cash
3,352

 
3,367

Operating lease right-of-use assets
209,920

 
—

Other assets
11,160

 
7,559

TOTAL ASSETS
$
2,232,915

 
$
2,196,643

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
CURRENT LIABILITIES:
 
 
 
Accounts payable
$
12,204

 
$
8,185

Accrued compensation
58,552

 
53,590

Other contract liabilities, current
7,732

 
17,177

Other accrued liabilities
25,581

 
24,548

Operating lease liabilities, current
28,915

 
—

Deferred revenue, current
364,442

 
390,965

Total current liabilities
497,426

 
494,465

Operating lease liabilities, non-current
197,776

 
—

Deferred revenue, non-current
80,729

 
116,604

Other contract liabilities, non-current
931

 
1,296

Other liabilities
7,192

 
22,209

TOTAL LIABILITIES
784,054

 
634,574

STOCKHOLDERS’ EQUITY:
 
 
 
Common stock
14

 
13

Additional paid-in capital
2,869,406

 
2,711,340

Accumulated other comprehensive income (loss)
978

 
(42
)
Accumulated deficit
(1,421,537
)
 
(1,149,242
)
TOTAL STOCKHOLDERS’ EQUITY
1,448,861

 
1,562,069

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,232,915

 
$
2,196,643






Cloudera, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2019
 
2018
(As Adjusted)*
 
2019
 
2018
(As Adjusted)*
 
 
 
 
 
 
 
 
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
 
 
Net loss
$
(82,122
)
 
$
(25,857
)
 
$
(272,295
)
 
$
(107,128
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
33,956

 
2,691

 
103,020

 
7,759

Stock-based compensation expense
54,214

 
21,890

 
164,818

 
67,731

Accretion and amortization of marketable securities
(702
)
 
(466
)
 
(2,362
)
 
(661
)
Amortization of deferred costs
12,606

 
7,991

 
33,579

 
21,794

Loss (gain) on disposal of fixed assets
—

 
(2
)
 
459

 
(22
)
Changes in assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable
(1,708
)
 
3,973

 
78,952

 
38,161

Contract assets
47

 
(29
)
 
(698
)
 
2,821

Prepaid expenses and other assets
157

 
(3,949
)
 
(3,056
)
 
8,348

Deferred costs
(15,393
)
 
(7,865
)
 
(37,200
)
 
(21,419
)
Accounts payable
7,854

 
(22
)
 
4,193

 
561

Accrued compensation
3,767

 
2,403

 
(2,323
)
 
(7,034
)
Accrued expenses and other liabilities
(6,649
)
 
597

 
(22,994
)
 
4,210

Other contract liabilities
(325
)
 
(493
)
 
(9,810
)
 
(108
)
Deferred revenue
(11,592
)
 
(7,646
)
 
(61,693
)
 
(20,987
)
Net cash used in operating activities
(5,890
)
 
(6,784
)
 
(27,410
)
 
(5,974
)
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
 
 
 
Purchases of marketable securities and other investments
(81,273
)
 
(116,538
)
 
(392,497
)
 
(368,914
)
Proceeds from sale of marketable securities and other investments
17,356

 
3,715

 
56,741

 
36,009

Maturities of marketable securities and other investments
96,228

 
115,300

 
331,630

 
346,203

Cash used in business combinations, net of cash acquired
(4,500
)
 
—

 
(4,500
)
 
—

Capital expenditures
(1,767
)
 
(1,628
)
 
(6,488
)
 
(9,291
)
Net cash provided by (used in) investing activities
26,044

 
849

 
(15,114
)
 
4,007

CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
 
 
Taxes paid related to net share settlement of restricted stock units
(5,439
)
 
(4,094
)
 
(21,085
)
 
(8,482
)
Proceeds from employee stock plans
10,413

 
7,430

 
19,633

 
18,760

Net cash provided by (used in) financing activities
4,974

 
3,336

 
(1,452
)
 
10,278

Effect of exchange rate changes on cash, cash equivalents and restricted cash
—

 
(411
)
 
(1,508
)
 
(1,626
)
Net increase (decrease) in cash, cash equivalents and restricted cash
25,128

 
(3,010
)
 
(45,484
)
 
6,685

Cash, cash equivalents and restricted cash — Beginning of period
91,427

 
70,994

 
162,039

 
61,299

Cash, cash equivalents and restricted cash — End of period
$
116,555

 
$
67,984

 
$
116,555

 
$
67,984



SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
 
 
 
 
 
 
 
Cash paid for income taxes
$
1,962

 
$
1,171

 
$
5,607

 
$
3,069

Cash paid for operating lease liabilities
$
2,864

 
$
—

 
$
27,898

 
$
—

SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES
 
 
 
 
 
 
 
Purchases of property and equipment in accounts payable and other accrued liabilities
$
138

 
$
202

 
$
138

 
$
202

Right-of-use assets obtained in exchange for new operating lease liabilities
$
775

 
$
—

 
$
3,741

 
$
—


* As adjusted to reflect the impact of the full retrospective adoption of Topic 606.






Cloudera, Inc.
Three Months Ended October 31, 2019
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
$
30,224

 
$
(4,306
)
 
$
(2,761
)
 
$
23,157

Subscription gross margin
82
 %
 
3
%
 
2
%
 
86
 %
Cost of revenue- Services
27,404

 
(4,620
)
 
—

 
22,784

Services gross margin
13
 %
 
15
%
 
—
%
 
27
 %
Gross profit
140,664

 
8,926

 
2,761

 
152,351

Total gross margin
71
 %
 
5
%
 
1
%
 
77
 %
Research and development
66,657

 
(19,697
)
 
—

 
46,960

Sales and marketing
117,783

 
(17,400
)
 
(17,264
)
 
83,119

General and administrative
38,691

 
(8,191
)
 
—

 
30,500

Loss from operations
(82,467
)
 
54,214

 
20,025

 
(8,228
)
Operating margin
(42
)%
 
27
%
 
10
%
 
(4
)%
Net loss
(82,122
)
 
54,214

 
20,025

 
(7,883
)
Net loss per share, basic and diluted
$
(0.29
)
 
$
0.19

 
$
0.07

 
$
(0.03
)

Cloudera, Inc.
Three Months Ended October 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
$
13,996

 
$
(2,016
)
 
$
(622
)
 
$
11,358

Subscription gross margin
86
 %
 
2
%
 
1
%
 
89
 %
Cost of revenue- Services
15,980

 
(2,290
)
 
—

 
13,690

Services gross margin
12
 %
 
13
%
 
—
%
 
25
 %
Gross profit
89,012

 
4,306

 
622

 
93,940

Total gross margin
75
 %
 
4
%
 
1
%
 
79
 %
Research and development
37,563

 
(7,805
)
 
—

 
29,758

Sales and marketing
55,055

 
(5,504
)
 
(35
)
 
49,516

General and administrative
22,067

 
(4,275
)
 
—

 
17,792

Loss from operations
(25,673
)
 
21,890

 
657

 
(3,126
)
Operating margin
(22
)%
 
18
%
 
1
%
 
(3
)%
Net loss
(25,857
)
 
21,890

 
657

 
(3,310
)
Net loss per share, basic and diluted
$
(0.17
)
 
$
0.14

 
$
—

 
$
(0.02
)

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.






Cloudera, Inc.
Reconciliation of Non-GAAP Financial Guidance
(unaudited)
 
Fiscal 2020
(in millions)
Q4
 
FY
GAAP net loss
($84) - ($78)

 
($357) - ($351)

Stock-based compensation expense (*)
52

 
218

Amortization of acquired intangible assets
20

 
80

Non-GAAP net loss
($12) - ($6)

 
($59) - ($53)


(*) 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:
Madge Miller
press@cloudera.com
+1 (888) 789-1488