Cloudera's (CLDR) Q4 Earnings And Revenues Increase Y/Y

Shares of Cloudera, Inc (NYSE:CLDR) soared nearly 11% during the extended trading session on Mar 10 after the company reported better-than-expected fourth-quarter fiscal 2020 results. Additionally, optimistic outlook for first-quarter and fiscal 2021 also instilled investors’ confidence over the company’s growth prospects.

The enterprise data cloud company’s adjusted earnings of 4 cents per share compared favorably with the Zacks Consensus Estimate of a loss of 4 cents and the year-ago quarter’s loss of 15 cents as well. The robust bottom-line improvement was mainly driven by strong revenue growth and efficient cost management.

Cloudera, Inc. Price, Consensus and EPS Surprise

Cloudera, Inc. Price, Consensus and EPS Surprise

Cloudera, Inc. price-consensus-eps-surprise-chart | Cloudera, Inc. Quote

Quarter Details

Cloudera’s fourth-quarter revenues of $211.7 million topped the consensus mark by 5% and surged 46.5% year over year mainly driven by rapid adoption of its cloud-based products and services. The company added 27 net new customers during the quarter, who generate more than $100,000 of annualized recurring revenues (ARR). Adjusted annualized recurring revenues (ARR) were $731.2 million, up 11% year over year.

Segment-wise, subscription revenues (85.9% of revenues) jumped 47.9% year-over-year to $182 million. Moreover, services (14.1% of revenues) rallied 38.4% year over year to $29.8 million.

In the reported quarter, non-GAAP gross margin expanded 100 basis points (bps) to 79% on a year-over-year basis. Non-GAAP subscription gross margin was flat year over year at 88%. Non-GAAP services gross margin was 23% compared with the year-ago quarter’s figure of 16%.

While research and development (R&D) expenses rose 26.9% on a year-over-year basis to $67 million, sales and marketing (S&M) expenses surged 42.2% to $117.9 million. However, as percentage of revenues, R&D and S&M expenses declined 490 bps and 170 bps, respectively.

However, general and administrative (G&A) expenses soared 36.9% to $34.8 million. As a percentage of revenues, G&A was 16.4% compared with 38.1% in the year-ago quarter.

Loss from operations in fourth-quarter fiscal 2020 was $64.4 million, narrower than a loss of $87 million a year ago. However, on non-GAAP basis, the company reported operating income of $11 million compared with operating loss of $30.2 million.

Balance Sheet & Cash Flow

As of Jan 31, 2020, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $486.5 million compared with $502.2 million reported in the previous quarter.

Moreover, reported operating cash outflow of $9.4 million. This includes $16.1 million of payments related to the merger with Hortonworks.

Guidance

First-Quarter Fiscal 2021

Cloudera expects revenues between $202 million and $207 million. The Zacks Consensus Estimate for revenues is currently pegged at $203.8 million, which indicates year-over-year growth of 8.7%.

Subscription revenues are estimated between $180 million and $183 million.

Non-GAAP net earnings are expected between a loss of 1 cent to an earnings of 1 cent. The Zacks Consensus Estimate is pegged at a loss per share of 4 cents.

Fiscal 2021

Cloudera expects revenues between $860 million and $880 million. The Zacks Consensus Estimate for revenues is currently pegged at $854.1 million, which suggests year-over-year growth of 7.5%.

Subscription revenues are estimated between $750 million and $760 million.

Non-GAAP net earnings are expected between 25 cents to 29 cents, while Zacks Consensus Estimates a loss of 3 cents per share.

Zacks Rank & Stocks to Consider

Currently, Cloudera carries a Zacks Rank #3 (Hold).

Intel Corporation (NASDAQ:INTC) , Applied Materials, Inc. (NASDAQ:AMAT) and Garmin Ltd. (NASDAQ:GRMN) are some better-ranked stocks in the same industry. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Intel, Applied Materials and GRMN is currently pegged at 7.5%, 9.9% and 7.4%, respectively.

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