What happened

Cloudera (NYSE:CLDR) dipped 14.3% in September, according to data from S&P Global Market Intelligence, following a post-earnings sell-off and the announcement of a secondary stock offering.

So what

Cloudera, which specializes in big data and Hadoop distribution, released its second-quarter earnings results on Sept. 7, delivering revenue and earnings that topped the average analyst estimates. Despite a strong performance that saw subscription revenues climb 46% year over year, overall sales climb 39%, and new guidance for a smaller loss on the fiscal year, the company's shares dipped following the earnings release.

Shares continued to fall after the company announced on Sept. 15 that it had filed for a new stock offering. Details on the follow-up offering are still somewhat scarce, but the company has confirmed that it will involve selling existing shares and issuing new stock. The company's post-IPO lockup period is set to expire on Oct. 25, and the potential for large insider sell-offs could be another source of anxiety for shareholders.

A cloud drawn on a circuit board

Image source: Getty Images.

Now what

Along with chief competitor Hortonworks, Cloudera is a first mover in enterprise Hadoop platforms, and stands to benefit from rapidly expanding addressable markets for categories like data analytics and machine learning. As a young company operating in the fast-growing cloud-services space, Cloudera has a lot of room to run if its business manages to remain competitive. On the other hand, it will likely have to fend off resource-rich competitors like Oracle, SAP, and IBM, and come up with new ways to differentiate its product offerings.

With a roughly $2.2 billion market cap, there's lots of potential for volatility with Cloudera stock, and, as shown in September, even solid earnings performance might not be met with a favorable market reaction. Investors in the company should closely track the company's progress -- while not reading too much into big short-term swings in valuation.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.