Cloudera, Inc. (NYSE:CLDR) Q1 2020 Earnings Conference Call Transcript

Jun 05, 2019 • 05:00 pm ET

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Cloudera, Inc. (NYSE:CLDR) Q1 2020 Earnings Conference Call Transcript

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Q & A
Operator
Operator

(Operator Instructions) Your first question comes from Phil Winslow with Wells Fargo. Your line is open.

Analyst
Phil Winslow

Yes, thanks for taking my question. Actually just two questions. First, you mentioned a slower expansion than you'd been anticipating. Wondering if can comment on just renewal rates though, what did you see during the quarter and what are you kind of thinking about them going forward. And then the second question, just in terms of re-accelerating net expansion, what are the key milestones that you're looking for or that you're hearing from customers that you think will -- that they believe will reaccelerate that?

Executive
Jim Frankola

This is Jim. I'll take the first part of that question, I'll let Tom handle the reacceleration. So dollar churn in the quarter spiked for us, it is about 16%. Typically it's average about 10% or slightly above that. If we decompose that, we see relative strength with our large customers, $1 million plus customers have a churn rate that is close to historical average and substantially less than the 16%. Most of the churn occurred in our customers at the earlier stages of their journey. We expect to see that sort of rough dynamic into Q2. Once we get beyond Q2, we expect renewal rates and churn rates to return to approximately where they have been historically.

Executive
Tom Reilly

Yes, this is Tom. Here's what I'm really encouraged about the second half. So large enterprises want and benefit from moving workloads to the public cloud. There is a class of use cases where it's very beneficial. CDP this summer is designed for us to capture those workloads in that journey and that strengthens our renewals and creates expansion opportunities. Second, in later after the CDP public cloud version, our private cloud version comes out. And the number one thing our large enterprises are expecting from is that private cloud version and a lot of the excitement that we're getting in our roadmap is not only for the hybrid capabilities but delivering a cloud experience to data centers. And those two things -- where we are very encouraged about our second half.

Analyst
Phil Winslow

Got it. Thanks guys. And then Tom, best of luck in your future endeavors.

Executive
Tom Reilly

Thank you, Phil.

Operator
Operator

Your next question comes from Chad Bennett with Craig-Hallum. Your line is open.

Analyst
Chad Bennett

Great. Thanks for taking my questions. So I'm just trying to understand I guess the logic behind customers effectively waiting and maybe it ties into Tom your comment about the public cloud vendors being more competitive, if you could define that, that'd be great after you guys made the merger announcement. I can't imagine their data growth is slowing, their workload expansion is slowing, their analytics investment is slowing. How can they afford to wait or are they actually and maybe it's evident in the churn dollar rate you just gave, are they just shifting those workloads off your platform, is that what's really going on?

Executive
Tom Reilly

Yes, Chad, you've covered quite a bit there. Let me just break it down