Cloudera Reports Fourth Quarter And Fiscal Year 2021 Financial Results

The following excerpt is from the company's SEC filing.
SANTA CLARA, Calif. March 10, 2021 —
Cloudera, Inc. (NYSE: CLDR), the enterprise data cloud company, reported results for its fourth quarter and fiscal year 2021, ended January 31, 2021. Total revenue for the fourth quarter was $226.6 million, an increase of 7% as compared to the fourth quarter of fiscal 2020. Subscription revenue was $206.8 million, an increase of 14% as compared to the fourth quarter of fiscal 2020. Annualized Recurring Revenue grew 10% year-over-year.
“Cloudera Data Platform demonstrated significant momentum in the quarter,” said Rob Bearden, chief executive officer, Cloudera. “Customers mig rating to CDP increased from about 10% of our customer base at the time we reported Q3 to more than 15% of our customer base today. Most impressively, ARR from CDP now exceeds $60 million of total ARR. The adoption of CDP for hybrid data cloud and data lifecycle use cases is what will drive future growth and we’re very happy with this progress to date.”
Fourth Quarter Fiscal 2021 Results
GAAP loss from operations for the fourth quarter of fiscal 2021 was $51.6 million, including an impairment charge of $35.8 million for right-of-use and other lease related assets, compared to $64.4 million for the fourth quarter of fiscal 2020
Non-GAAP income from operations for the fourth quarter of fiscal 2021 was $50.5 million, compared to $11.0 million for the fourth quarter of fiscal 2020
Operating cash flow for the fourth quarter of fiscal 2021 was $36.7 million, compared to negative $9.4 million for the fourth quarter of fiscal 2020
GAAP net loss per share for the fourth quarter of fiscal 2021 was $0.18 per share, compared to $0.22 per share for the fourth quarter of fiscal 2020
Non-GAAP diluted net income per share for the fourth quarter of fiscal 2021 was $0.15 per share, compared to $0.04 per share for the fourth quarter of fiscal 2020
Fiscal Year 2021 Results
For fiscal year 2021, total revenue was $869.3 million, an increase of 9% year-over-year
Subscription revenue for fiscal year 2021 was $782.8 million, an increase of 17% year-over-year
GAAP loss from operations for fiscal year 2021 was $156.3 million, including an impairment charge of $35.8 million for right-of-use and other lease related assets, compared to $339.8 million for fiscal year 2020
Non-GAAP income from operations for fiscal year 2021 was $146.8 million, compared to a non-GAAP loss from operations of $39.4 million for fiscal year 2020
Operating cash flow for fiscal year 2021 was $155.8 million, compared to negative $36.8 million for fiscal year 2020
GAAP net loss per share for fiscal year 2021 was
$0.54 per share, compared to $1.20 per share for fiscal year 2020
Non-GAAP diluted net income per share for fiscal year 2021 was $0.45, compared to a non-GAAP net loss per share of $0.13 for fiscal year 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 January 31, 2021, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $773.0 million.
Recent Business and Financial Highlights
Annualized Recurring Revenue at the conclusion of fiscal 2021 was $778 million, representing 10% year-over-year growth
GAAP subscription gross margin for the quarter was 87%, up from 84% in the fourth quarter of fiscal 2020
Non-GAAP subscription gross margin for the quarter was 91%, up from 88% in the fourth quarter of fiscal 2020
Closed a covenant lite, $500 million senior secured term loan
Repurchased 26 million shares of Cloudera common stock
CDP Operational Database now available on Amazon Web Services (AWS) and Microsoft Azure
CDP Public Cloud SOC 2 Type II Certified
Partnered with NVIDIA to accelerate processing for enterprise data engineering and data science workflows on Cloudera Data Platform
Launched Applied ML Prototypes, complete ML use cases with pre-built AI apps for CDP Machine Learning
CDP Data Warehouse delivers better price performance in GigaOm benchmark testing
Business Outlook
The outlook for the first quarter of fiscal 2022, ending April 30, 2021, is:
Total revenue in the range of $216 million to $218 million
Subscription revenue in the range of $195 million to $197 million
Non-GAAP operating income in the range of $28 million to $33 million
Non-GAAP net income per share in the range of $0.07 to $0.09 per share
Diluted weighted-average share count of approximately 303 million shares
The outlook for fiscal 2022, ending January 31, 2022, is:
Total revenue in the range of $907 million to $927 million
Subscription revenue in the range of $822 million to $832 million
Non-GAAP operating income in the range of $137 million to $147 million
Non-GAAP net income per share in the range of $0.35 to $0.39 per share
Diluted weighted-average share count of approximately 308 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 first quarter fiscal 2022.
Conference Call and Webcast Information
Cloudera is hosting a conference call for analysts and investors to discuss its fourth quarter fiscal 2021 results and the outlook for its first quarter of fiscal 2022 and full year fiscal 2022 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: +1-833-579-0900
Participant International Number: +1-778-560-2567
Conference ID: 7339087
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
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
first quarter of fiscal 2022 and our full year fiscal 2022 o
perating 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.
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, amortization of acquired intangible assets, extraordinary non-cash real estate impairment charges, and acquisition and disposition-related expenses (if any) 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 (“ARR”) is a performance metric, which we use to assess the health and trajectory of our business. ARR equals the annualized value of 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.
CDP ARR is comprised of CDP Public Cloud SKUs, annualized based on quarterly consumption revenue, CDP Private Cloud SKUs, calculated based on the annualized value of recurring subscription agreements with active entitlements as of quarter-end, and legacy SKUs that are otherwise contractually entitled to run CDP.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended January 31,
Year Ended January 31,
Revenue:
206,807 
181,954 
782,769 
667,826 
19,756 
29,766 
86,489 
126,365 
226,563 
211,720 
869,258 
794,191 
Cost of revenue:
(1) (2)
26,026 
29,103 
107,834 
117,739 
17,235 
27,408 
81,354 
114,763 
Total cost of revenue
43,261 
56,511 
189,188 
232,502 
Gross profit
183,302 
155,209 
680,070 
561,689 
Operating expenses:
Research and development
61,681 
66,994 
244,507 
263,566 
Sales and marketing
103,654 
117,884 
420,501 
467,541 
General and administrative
69,562 
34,768 
171,327 
170,336 
Total operating expenses
234,897 
219,646 
836,335 
901,443 
Loss from operations
(51,595)
(64,437)
(156,265)
(339,754)
Interest (expense) income, net
2,484 
3,994 
11,687 
Other (expense) income, net
(3,117)
Loss before provision for income taxes
(52,689)
(62,059)
(155,388)
(327,882)
Provision for income taxes
(2,089)
(2,228)
(7,346)
(8,700)
Net loss
(54,778)
(64,287)
(162,734)
(336,582)
Net loss per share, basic and diluted
(0.18)
(0.22)
(0.54)
(1.20)
Weighted-average shares used in computing net loss per share, basic and diluted
303,526 
291,193 
302,522 
280,772 
Amounts include stock-based compensation expense as follows (in thousands):
Cost of revenue – subscription
4,063 
4,285 
15,123 
16,599 
Cost of revenue – services
2,546 
4,533 
11,909 
17,609 
Research and development
18,834 
19,563 
72,087 
75,554 
Sales and marketing
13,513 
17,161 
55,173 
63,360 
General and administrative
8,068 
9,994 
34,643 
47,232 
Total stock-based compensation expense
47,024 
55,536 
188,935 
220,354 
Amounts include amortization of acquired intangible assets as follows (in thousands):
Cost of revenue – subscription
2,577 
2,855 
11,880 
11,213 
Sales and marketing
16,628 
17,047 
66,426 
68,811 
Total amortization of acquired intangible assets
19,205 
19,902 
78,306 
80,024 
Amounts include the impairment of real estate lease related right-of-use assets and other long-lived assets of $35.8 million for the three months and year ended January 31, 2021.
Consolidated Balance Sheets
ASSETS
Current assets:
Cash and cash equivalents
298,672 
107,638 
Marketable securities
297,721 
253,361 
Accounts receivable, net
316,098 
249,971 
Deferred contract costs
53,048 
54,776 
Prepaid expenses and other current assets
32,382 
42,155 
Total current assets
997,921 
707,901 
Property and equipment, net
18,065 
21,988 
Marketable securities, non-current
173,281 
122,193 
Intangible assets, net
532,630 
605,236 
Goodwill
599,291 
590,361 
Deferred contract costs, non-current
31,170 
35,260 
Operating lease right-of-use assets
146,424 
204,642 
Other assets
9,819 
12,209 
TOTAL ASSETS
2,508,601 
2,299,790 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
2,713 
3,858 
Accrued compensation
56,643 
61,826 
Other accrued liabilities
30,196 
22,297 
Operating lease liabilities
19,574 
19,181 
Contract liabilities
553,983 
472,786 
Total current liabilities
663,109 
579,948 
Long-term debt
487,089 
Operating lease liabilities, non-current
169,296 
192,324 
Contract liabilities, non-current
54,414 
81,926 
Other accrued liabilities, non-current
6,763 
7,223 
TOTAL LIABILITIES
1,380,671 
861,421 
STOCKHOLDERS’ EQUITY:
Common stock
Additional paid-in capital
2,776,690 
2,923,905 
Accumulated other comprehensive income
Accumulated deficit
(1,649,355)
(1,485,824)
TOTAL STOCKHOLDERS’ EQUITY
1,127,930 
1,438,369 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
Consolidated Statements of Cash Flows
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
22,377 
23,033 
89,393 
92,156 
Non-cash lease expense
11,539 
11,743 
45,747 
45,640 
 Impairment of real estate lease related assets
35,828 
Stock-based compensation expense
Amortization of deferred contract costs
15,984 
13,973 
66,734 
47,552 
1,008 
9,395 
(1,880)
Changes in assets and liabilities:
Accounts receivable
(141,128)
(87,908)
(65,061)
(8,956)
Prepaid expenses and other assets
(2,357)
(4,526)
12,151 
(8,280)
(24,915)
(31,375)
(60,916)
(68,575)
Accounts payable
(8,282)
(2,816)
(4,089)
Accrued compensation
4,085 
7,893 
(6,140)
5,570 
Other accrued liabilities
4,634 
(4,795)
1,187 
(21,291)
(23,161)
(46,022)
(51,059)
    Contract liabilities
139,360 
102,717 
50,141 
31,214 
Net cash provided by (used in) operating activities
36,652 
(9,416)
155,822 
(36,826)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities
(77,515)
(101,755)
(472,715)
(494,252)
Proceeds from sale of marketable securities
10,007 
29,998 
120,329 
86,739 
Maturities of marketable securities
63,093 
81,927 
254,763 
413,557 
Cash used in business combinations, net of cash acquired
(12,358)
(4,500)
Capital expenditures
(2,748)
(10,053)
(7,203)
Net cash (used in) provided by investing activities
(7,163)
9,455 
(120,034)
(5,659)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt, net of issuance costs
490,546 
Repurchases of common stock
(314,091)
(340,065)
Taxes paid related to net share settlement of equity awards
(17,613)
(11,536)
(47,248)
(32,621)
Proceeds from employee stock plans
12,873 
6,031 
51,064 
25,664 
Net cash provided by (used in) financing activities
171,715 
(5,505)
154,297 
(6,957)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(1,607)
Net increase (decrease) in cash, cash equivalents and restricted cash
202,558 
(5,565)
191,034 
(51,049)
Cash, cash equivalents and restricted cash — Beginning of period
99,466 
116,555 
110,990 
162,039 
Cash, cash equivalents and restricted cash — End of period
302,024 
Reconciliation of cash, cash equivalents and restricted cash as shown in the statement of cash flows:
As of January 31,
Restricted cash included in Other assets
3,352 
Total cash, cash equivalents and restricted cash
Three Months Ended January 31, 2021
GAAP Results Reconciled to Non-GAAP Results
(in thousands, except percentage and per share amounts)
Stock-Based Compensation Expense
Amortization of Acquired Intangible Assets
Extraordinary Non-Cash Real Estate Impairment Charges
Cost of revenue- Subscription
(4,063)
(2,577)
19,386 
Subscription gross margin
Cost of revenue- Services
(2,546)
14,689 
Services gross margin
6,609 
192,488 
Total gross margin
(18,834)
42,847 
(13,513)
(16,628)
73,513 
(8,068)
(35,828)
25,666 
(Loss) income from operations
50,462 
Operating margin
Net (loss) income
47,279 
Net (loss) income per share, basic
Net (loss) income per share, diluted
(1) See below for a reconciliation of weighted-average shares outstanding used to calculate non-GAAP net income per share
Three Months Ended January 31, 2020
(unaudited) 
(4,285)
(2,855)
21,963 
(4,533)
22,875 
8,818 
166,882 
(19,563)
47,431 
(17,161)
(17,047)
83,676 
(9,994)
24,774 
11,001 
11,151 
Net (loss) income per share, basic
Twelve Months Ended January 31, 2021
(15,123)
(11,880)
80,831 
(11,909)
69,445 
27,032 
718,982 
(72,087)
172,420 
(55,173)
(66,426)
298,902 
(34,643)
100,856 
146,804 
140,335 
(1) See below for a reconciliation of weighted-average shares outstanding used to calculate non-GAAP net income per share
Twelve Months Ended January 31, 2020
(16,599)
(11,213)
89,927 
(17,609)
97,154 
34,208 
607,110 
(75,554)
188,012 
(63,360)
(68,811)
335,370 
(47,232)
123,104 
(39,376)
(36,204)
Net loss per share, basic and diluted
(0.13)
Reconciliation of weighted-average shares used for non-GAAP net income per share
Weighted-average shares, basic
Effect of dilutive securities:
Stock options, unvested restricted stock units and ESPP
8,794 
16,572 
12,160 
Weighted-average shares, diluted
312,320 
307,765 
314,682 
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 exclude extraordinary non-cash real estate impairment charges from our non-GAAP financial measures. Extraordinary non-cash real estate impairment charges relate to charges that we incur as a result of activities with respect to our leased office locations. The exclusion of the impairment charges 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.
Reconciliation of Non-GAAP Financial Guidance
Fiscal 2022
(in millions)
First Quarter
Full Year
GAAP operating loss
($42) - ($37)
($159) - ($149)
$28 - $33
$137 - $147
($49) - ($43)
($188) - ($176)
$21 - $27
$108 - $120
(*) 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

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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