Cloudera, Inc. (NYSE:CLDR) Q3 2020 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 05:00 pm ET

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Cloudera, Inc. (NYSE:CLDR) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Jim Frankola

million weighted average shares outstanding, compared to a loss per share of $0.02 in the third quarter of fiscal 2019.

Now turning to the balance sheet and cash flow. We exited Q3 with $502 million in cash, cash equivalents, marketable securities and restricted cash, down from $509 million at the conclusion of Q2. Operating cash flow for the third quarter was negative $6 million, which includes $6 million of merger-related payments. Cash flow was better than expected due to top-line outperformance, coupled with continued strong execution on merger-related cost synergies.

Capital expenditures were $2 million in the quarter. These low levels of expenditures are indicative of Cloudera's capital efficiency.

Total contract liabilities, which comprise deferred revenue and other contract liabilities, were $454 million at the end of third quarter. At the end of the third quarter, RPO was $686 million.

I'll conclude by providing initial guidance for fiscal Q4 and updated guidance for fiscal year 2020. We expect Q4 total revenue to be between $200 million and $203 million and subscription revenue in the range of $173 million to $176 million. We expect our services revenue and margin will continue to decline over the next few quarters, as we use some of our services personnel to support the roll-out of CDP.

Net loss per share is projected to be $0.04 to $0.02 based on 294 million weighted average shares outstanding. For fiscal year 2020, we expect total revenue to be between $782 million and $785 million and subscription revenue to be in the range of $659 million to $662 million. Since we're ahead of plan in capturing merger cost synergies, we now expect operating cash flow for fiscal-year 2020 to be between negative $55 million and $45 million and net loss per share to be $0.21 to $0.19 based on 281 million weighted average shares outstanding.

Projected operating cash flow for fiscal 2020 includes approximately $60 million of merger related payments. Adjusting for these merger related expenses, the business is expected to be cash flow positive for the year. With the merger complete and CDP in market, we intend to build on these results and are placing greater emphasis on cash generation in our fiscal 2021 planning.

As discussed last quarter, consistent pipeline building throughout Q2 and Q3 is expected to yield bookings in Q4 and the first half of fiscal 2021. As such, we're raising our subscription revenue and ARR guidance for Q4. Specifically, we anticipate Q4 ARR to be in the range of $700 million to $720 million. As a reminder, our fiscal 2020 financial plans do not factor in CDP customer adoption. We expect our plans to be achieved through the purchase and expansion of our existing offerings for the balance of the fiscal year. The revenue impact of CDP will occur primarily in fiscal 2021.

I will now return the call to Marty.

Executive
Marty Cole

Thanks, Jim. We're pleased to report another straightforward quarter for Q3. We executed our plans and again exceeded expectations, raising our outlook for