Cloudera, Inc. (NYSE:CLDR) Q3 2019 Earnings Conference Call Transcript
Dec 05, 2018 • 05:00 pm ET
Good afternoon. My name is Kristine, and I will be your conference operator today. Welcome to the Cloudera Third Quarter Fiscal 2019 Quarterly Results Conference Call. All participants lines have been placed in a listen only mode to prevent background noise. After the speakers' remarks, there will be an opportunity to ask questions. (Operator Instructions) Please note this conference is being recorded.
Your host is Kevin Cook, VP, Corporate Development and IR. Kevin, you may begin your conference.
Thank you, Kristine. Good afternoon, and welcome to Cloudera's third quarter fiscal 2019 conference call. We will be discussing the results announced in our press release issued after market close today. From Cloudera, with me are Tom Reilly, CEO; Mike Olson, Co-Founder, Chairman and Chief Strategy Officer; and Jim Frankola, CFO.
(Forward-Looking Cautionary Statement)
Now I'll turn the call over to Tom Reilly.
Hello, everyone. Thank you for joining us to discuss our third quarter fiscal 2019 financial performance. I recognize today is very special, the National Day of mourning for President Bush. Our thoughts and prayers are with the Bush family and the nation. Considering the markets are closed today in honour of the special memory, I appreciate all of you joining us for this call.
I'll quickly review Q3 results for Cloudera standalone and then update you on our proposed merger with Hortonworks, our combined company strategy and the progress we're making in integration planning. Remember that the transaction was announced on October 3rd in the midst of our third quarter. Despite this major development in all the groundwork we had laid for the merger, we remain focused and executed well to deliver strong results in the quarter.
Total revenue for the third quarter was $118 million representing year-over-year growth of 25%. Subscription software revenue grew 28% year-over-year. Recall that we are very focused on driving expansions at our existing customers in acquiring new customers in our target market. The sum of existing customers graduating to greater than $100,000 of annual recurring revenue and new customers beginning with annual recurring revenue above $100,000 is our measure of business activity. We increased this number by 33 in the quarter for a total of 601 customers with more than $100,000 of ARR at the conclusion of Q3. Reflecting the significance of this measure, these 601 customers represented more than 90% of software revenue in the quarter.
While much more focuses on long-term strategy and merger planning, it is reassuring to see continued favorable results from the go-to-market changes we initiated a few quarters ago. We added 63 new customers in Q3, predominantly in our target market. Increasingly, our new customer wins are being driven by our hybrid cloud offerings. We've noted from customer engagement over the past few quarters that there is little interest in a public cloud versus on premises deployment debate. Instead, the hybrid cloud in avoidance of cloud lock-in these are amplified.
Customers are demanding hybrid and multi-cloud capability in our competitive advantages here evident in their decision-making. Reinforcing our