EX-99.1 2 q3-21cldrexhibit991.htm EX-99.1 Document
Exhibit 99.1
Cloudera Reports Third Quarter Fiscal 2021 Financial Results


SANTA CLARA, Calif. December 3, 2020 — Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its third quarter of fiscal 2021, ended October 31, 2020. Total revenue for the third quarter was $217.9 million, an increase of 10% as compared to the third quarter of fiscal 2020. Subscription revenue was $197.4 million, an increase of 18% as compared to the third quarter of fiscal 2020. Annualized Recurring Revenue grew 12% year-over-year.

“In the third quarter, CDP Private Cloud became generally available, we announced three new upcoming cloud-native services on CDP Public Cloud, and the number of CDP Public Cloud paying customers increased by more than 40%. With CDP Private Cloud now in-market, our hybrid multi-cloud offerings can be implemented by customers and our Enterprise Data Cloud vision is nearly complete. We are beginning to see an acceleration of migrations by existing customers from legacy Cloudera and Hortonworks platforms to CDP,” said Rob Bearden, chief executive officer, Cloudera. “We believe that Cloudera has never been better-positioned to capture more of the rapidly growing data management and analytics market opportunity for hybrid multi-cloud solutions. As a result, we have announced today that the board has authorized the repurchase of an additional $500 million in shares of our stock.”

Third Quarter Fiscal 2021 Results

•GAAP loss from operations for the third quarter of fiscal 2021 was $12.3 million, compared to $82.5 million for the third quarter of fiscal 2020
•Non-GAAP income from operations for the third quarter of fiscal 2021 was $49.3 million, compared to a non-GAAP loss from operations of $8.2 million for the third quarter of fiscal 2020
•Operating cash flow for the third quarter of fiscal 2021 was $18.4 million, compared to negative $5.9 million for the third quarter of fiscal 2020
•GAAP net loss per share for the third quarter of fiscal 2021 was $0.04 per share, compared to $0.29 per share for the third quarter of fiscal 2020
•Non-GAAP net income per share for the third quarter of fiscal 2021 was $0.15 per share, compared to a non-GAAP net loss per share of $0.03 per share for the third quarter of fiscal 2020

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, 2020, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $567.5 million.

Recent Business and Financial Highlights

•Annualized Recurring Revenue at the conclusion of the third quarter of fiscal 2021 was $756 million, representing 12% year-over-year growth
•GAAP subscription gross margin for the quarter was 87%, up from 82% in the third quarter of fiscal 2020
•Non-GAAP subscription gross margin for the quarter was 91%, up from 86% in the third quarter of fiscal 2020
•Cloudera recognized as a leader in The Forrester Wave(TM): Notebook-Based Predictive Analytics and Machine Learning, Q3 2020
•Acquired Eventador, a provider of cloud-native services for streaming analytics, to deliver more customer value for real-time analytics use cases
•Three new enterprise data cloud services designed specifically for data specialists were announced for Cloudera Data Platform (CDP): CDP Data Engineering; CDP Operational Database; and CDP Data Visualization

Business Outlook

The outlook for the fourth quarter of fiscal 2021, ending January 31, 2021 is:

•Total revenue in the range of $219 million to $222 million
•Subscription revenue in the range of $199 million to $202 million
•Non-GAAP operating income in the range of $35 million to $40 million
•Non-GAAP net income per share in the range of $0.10 to $0.12 per share
•Diluted weighted-average share count of approximately 323 million shares




The outlook for fiscal 2021, ending January 31, 2021, is:

•Total revenue in the range of $862 million to $865 million
•Subscription revenue in the range of $775 million to $778 million
•Non-GAAP operating income in the range of $131 million to $136 million
•Non-GAAP net income per share in the range of $0.40 to $0.42 per share
•Diluted weighted-average share count of approximately 317 million shares

The business outlook is based on the assumption that the recessionary impact of the coronavirus pandemic (COVID-19) will continue at least through Cloudera’s fourth quarter fiscal 2021.

Share Repurchase Authorization

Cloudera's board of directors has authorized the repurchase of up to an additional $500 million in shares of our common stock, through open market purchases, block trades and/or in privately negotiated transactions, pursuant to Rule 10b5-1 plans, or other repurchase mechanisms, in compliance with applicable securities laws and other legal requirements. The timing, volume and nature of any repurchases will be determined by Cloudera's management based on their evaluation of the capital needs of the business, market conditions, applicable legal requirements and other factors. The repurchase program will be executed consistent with our capital allocation strategy, balancing investment to grow the business over the long-term and return of capital to shareholders. No time limit was set for the completion of the repurchase program, the program may be suspended or discontinued at any time and the program does not obligate Cloudera to purchase any shares. The amount of shares Cloudera has been authorized to repurchase may be increased or decreased at any time by our board of directors. The repurchase program is conditioned upon the closing of an institutional term loan, which we believe can be closed during our current fiscal quarter. Cloudera currently expects to fund the repurchase program using proceeds from this term loan, and/or with our existing cash or cash generated from operations. Cloudera’s ability to secure proceeds from and the timing of closing such an institutional term loan are subject to market conditions and other factors beyond our control.

Conference Call and Webcast Information

Cloudera is hosting a conference call for analysts and investors to discuss its third quarter fiscal 2021 results and the outlook for its fourth quarter of fiscal 2021 and full year fiscal 2021 at 1:30 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: +1-833-579-0900
•Participant International Number: +1-778-560-2567
•Conference ID: 2257327

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 assumptions, goals and targets, including our “Business Outlook” for our fourth quarter of fiscal 2021 and our full year fiscal 2021 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, the impact of and uncertainties related to COVID-19, 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 our SEC filings on the SEC’s website at www.sec.gov. Additionally, these forward-looking statements, particularly our guidance, involve risk, uncertainties and assumptions, including those related to the impact of COVID-19 on our business and global economic conditions. Many of these assumptions relate to matters that are beyond our control and changing rapidly, including, but not limited to, the timeframes for and severity of the impact of COVID-19 on our customers’ purchasing decisions and the length of our sales cycles, particularly for customers in certain industries highly affected by COVID-19. 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 operating margin, and historical and forward-looking non-GAAP income/loss from operations, non-GAAP net income/loss, and non-GAAP net income/loss per share. These non-GAAP financial measures exclude stock-based compensation, acquisition and disposition-related expenses (if any), extraordinary non-cash real estate impairment charges (if any), and amortization of acquired intangible assets from our 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 financial statement tables titled “Use of Non-GAAP Financial Information” as well as the related financial statement 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 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. ARR does not reflect non-recurring partner revenue, subscription revenue with certain related parties, custom engineering, remote operation and management services, or 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,
2020201920202019
Revenue:
Subscription
$197,355 $166,932 $575,962 $485,872 
Services
20,544 31,360 66,733 96,599 
Total revenue
217,899 198,292 642,695 582,471 
Cost of revenue:(1) (2)
Subscription
25,243 30,224 81,808 88,636 
Services
16,804 27,404 64,119 87,355 
Total cost of revenue
42,047 57,628 145,927 175,991 
Gross profit
175,852 140,664 496,768 406,480 
Operating expenses:(1) (2)
Research and development
56,306 66,657 182,826 196,572 
Sales and marketing
97,952 117,783 316,847 349,657 
General and administrative
33,923 38,691 101,765 135,568 
Total operating expenses
188,181 223,131 601,438 681,797 
Loss from operations
(12,329)(82,467)(104,670)(275,317)
Interest income
1,201 2,756 4,886 9,203 
Other income (expense), net
(1,398)(46)(2,915)291 
Loss before provision for income taxes
(12,526)(79,757)(102,699)(265,823)
Provision for income taxes
(1,419)(2,365)(5,257)(6,472)
Net loss
$(13,945)$(82,122)$(107,956)$(272,295)
Net loss per share, basic and diluted
$(0.04)$(0.29)$(0.36)$(0.98)
Weighted-average shares used in computing net loss per share, basic and diluted
311,009 283,267 302,185 277,260 

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

Three Months Ended October 31,Nine Months Ended October 31,
2020201920202019
Cost of revenue – subscription$3,384 $4,306 $11,060 $12,314 
Cost of revenue – service2,372 4,620 9,363 13,076 
Research and development16,372 19,697 53,253 55,991 
Sales and marketing11,806 17,400 41,660 46,199 
General and administrative7,922 8,191 26,575 37,238 
Total stock-based compensation expense
$41,856 $54,214 $141,911 $164,818 

(2) Amounts include amortization of acquired intangible assets as follows (in thousands):
Three Months Ended October 31,Nine Months Ended October 31,
2020201920202019
Cost of revenue – subscription $3,144 $2,761 $9,303 $8,358 
Sales and marketing 16,605 17,264 49,798 51,764 
Total amortization of acquired intangible assets
$19,749 $20,025 $59,101 $60,122 




Cloudera, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
October 31,
2020		January 31,
2020
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$96,114 $107,638 
Marketable securities
298,711 253,361 
Accounts receivable, net
172,424 249,971 
Deferred costs
44,922 54,776 
Prepaid expenses and other current assets
28,502 42,155 
Total current assets
640,673 707,901 
Property and equipment, net
20,247 21,988 
Marketable securities, non-current
169,324 122,193 
Intangible assets, net
551,835 605,236 
Goodwill
599,291 590,361 
Deferred costs, non-current
30,365 35,260 
Operating lease right-of-use assets
187,469 204,642 
Other assets
10,961 12,209 
TOTAL ASSETS
$2,210,165 $2,299,790 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$2,556 $3,858 
Accrued compensation
56,029 61,826 
Other contract liabilities7,895 12,225 
Other accrued liabilities
22,902 22,297 
Operating lease liabilities
29,422 19,181 
Deferred revenue
401,943 460,561 
Total current liabilities
520,747 579,948 
Operating lease liabilities, non-current
176,244 192,324 
Deferred revenue, non-current
57,958 81,926 
Other accrued liabilities, non-current
5,683 7,223 
TOTAL LIABILITIES
760,632 861,421 
STOCKHOLDERS’ EQUITY:
Common stock
16 15 
Additional paid-in capital
3,044,290 2,923,905 
Accumulated other comprehensive income
(195)273 
Accumulated deficit
(1,594,578)(1,485,824)
TOTAL STOCKHOLDERS’ EQUITY
1,449,533 1,438,369 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$2,210,165 $2,299,790 




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

Three Months Ended October 31,Nine Months Ended October 31,
2020201920202019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$(13,945)$(82,122)$(107,956)$(272,295)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
22,077 22,957 67,016 69,123 
 Non-cash lease expense11,516 10,999 34,208 33,897 
Stock-based compensation expense
41,856 54,214 141,911 164,818 
Amortization of deferred costs
17,340 12,606 50,750 33,579 
Other
3,261 (702)8,387 (1,903)
Changes in assets and liabilities:
Accounts receivable
(24,273)(1,708)76,067 78,952 
Prepaid expenses and other assets
(120)204 14,508 (3,754)
Deferred costs
(13,711)(15,393)(36,001)(37,200)
Accounts payable
(1,268)7,854 (2,098)4,193 
Accrued compensation
(3,579)3,767 (10,225)(2,323)
Other accrued liabilities
832 (3,785)(3,447)4,904 
 Other contract liabilities(456)(203)(4,330)(9,445)
Operating lease liabilities
(3,525)(2,864)(24,731)(27,898)
Deferred revenue
(17,640)(11,714)(84,889)(62,058)
Net cash provided by (used in) operating activities 18,365 (5,890)119,170 (27,410)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities
(121,631)(81,273)(395,200)(392,497)
Proceeds from sale of marketable securities
6,150 17,356 110,322 56,741 
Maturities of marketable securities
67,960 96,228 191,670 331,630 
Cash used in business combinations, net of cash acquired
(12,358)(4,500)(12,358)(4,500)
Capital expenditures
(2,875)(1,767)(7,305)(6,488)
Net cash (used in) provided by investing activities (62,754)26,044 (112,871)(15,114)
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchases of common stock— — (25,974)— 
Taxes paid related to net share settlement of restricted stock units(6,352)(5,439)(29,635)(21,085)
Proceeds from employee stock plans
4,552 10,413 38,191 19,633 
Net cash (used in) provided by financing activities (1,800)4,974 (17,418)(1,452)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(868)— (405)(1,508)
Net (decrease) increase in cash, cash equivalents and restricted cash(47,057)25,128 (11,524)(45,484)
Cash, cash equivalents and restricted cash — Beginning of period146,523 91,427 110,990 162,039 
Cash, cash equivalents and restricted cash — End of period $99,466 $116,555 $99,466 $116,555 


Reconciliation of cash, cash equivalents and restricted cash as shown in the statement of cash flows:
As of October 31,
20202019
Cash and cash equivalents$96,114 $113,203 
Restricted cash included in Other assets3,352 3,352 
Total cash, cash equivalents and restricted cash$99,466 $116,555 




Cloudera, Inc.
Three Months Ended October 31, 2020
GAAP Results Reconciled to Non-GAAP Results
(in thousands, except percentage and per share amounts)
(unaudited)

GAAPStock-Based Compensation ExpenseAmortization of Acquired Intangible AssetsNon-GAAP
Cost of revenue- Subscription$25,243 $(3,384)$(3,144)$18,715 
Subscription gross margin87 %2 %2 %91 %
Cost of revenue- Services16,804 (2,372)— 14,432 
Services gross margin18 %12 %— %30 %
Gross profit175,852 5,756 3,144 184,752 
Total gross margin81 %3 %1 %85 %
Research and development56,306 (16,372)— 39,934 
Sales and marketing97,952 (11,806)(16,605)69,541 
General and administrative33,923 (7,922)— 26,001 
(Loss) income from operations(12,329)41,856 19,749 49,276 
Operating margin(6)%19 %9 %23 %
Net (loss) income(13,945)41,856 19,749 47,660 
Net (loss) income per share, basic (0.04)0.13 0.06 0.15 
Net (loss) income per share, diluted (1)
$(0.04)$0.13 $0.06 $0.15 
(1) See below for a reconciliation of weighted-average shares outstanding used to calculate non-GAAP net income per share




Cloudera, Inc.
Three Months Ended October 31, 2019
GAAP Results Reconciled to Non-GAAP Results
(in thousands, except percentage and per share amounts)
(unaudited) 
GAAPStock-Based Compensation ExpenseAmortization of Acquired Intangible AssetsNon-GAAP
Cost of revenue- Subscription
$30,224 $(4,306)$(2,761)$23,157 
Subscription gross margin82 %3 %2 %86 %
Cost of revenue- Services
27,404 (4,620)— 22,784 
Services gross margin13 %15 %— %27 %
Gross profit
140,664 8,926 2,761 152,351 
Total gross margin71 %5 %1 %77 %
Research and development
66,657 (19,697)— 46,960 
Sales and marketing
117,783 (17,400)(17,264)83,119 
General and administrative
38,691 (8,191)— 30,500 
Loss from operations
(82,467)54,214 20,025 (8,228)
Operating margin
(42)%27 %10 %(4)%
Net loss
(82,122)54,214 20,025 (7,883)
Net loss per share, basic and diluted$(0.29)$0.19 $0.07 $(0.03)




Cloudera, Inc.
Reconciliation of weighted-average shares used for non-GAAP net income per share
(in thousands)
(unaudited) 

Three Months Ended October 31,
20202019
Weighted-average shares, basic311,009 283,267 
Effect of dilutive securities:
Stock options, unvested restricted stock units and ESPP7,647 — 
Weighted-average shares, diluted 318,656 283,267 


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 we exclude from our non-GAAP financial measures, we believe 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.

•Extraordinary non-cash real estate impairment charges. We currently lease approximately 225,000 square feet of space for our former corporate headquarters in Palo Alto, California under a lease agreement that expires in 2027. Upon the completion of the merger with Hortonworks, we added approximately 92,000 square feet of space in Santa Clara, California under a lease agreement that expires in 2026 and we relocated our corporate headquarters to this space during the second quarter of fiscal 2021. Extraordinary non-cash real estate impairment charges relate to potential charges that we may incur as a result of future activities with respect to our leased office locations.




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


Fiscal 2021
(in millions)Q4FY
GAAP operating loss($30) - ($25)($135) - ($130)
Stock-based compensation expense (*)
46 188 
Amortization of acquired intangible assets19 78 
Non-GAAP operating income$35 - $40$131 - $136



Fiscal 2021
(in millions)Q4FY
GAAP net loss($32) - ($26)($139) - ($134)
Stock-based compensation expense (*)
46 188 
Amortization of acquired intangible assets19 78 
Non-GAAP net income $33 - $39$127 - $132
(*) Stock-based compensation expense is impacted by a number of variables, 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