What happened

Shares of Cloudera (NYSE:CLDR) rose on Friday after the cloud software company reported its third-quarter results. Cloudera beat analyst estimates across the board, sending the stock up about 10% by 11 a.m. EST.

So what

Cloudera reported third-quarter revenue of $198.3 million, up 66.7% year over year and $9.2 million higher than the average analyst estimate. Subscription revenue was $166.9 million, up roughly the same percentage as total revenue. Annualized recurring revenue reached $697.4 million, up 13% year over year.

A cloud.

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Non-GAAP (adjusted) earnings per share came in at a loss of $0.03, worse than a loss of $0.02 in the prior-year period but $0.03 better than analysts were expecting. The company lost $82.1 million, or $0.29 per share, on a GAAP basis, which treats stock-based compensation as a real expense. GAAP sales and marketing costs more than doubled year over year.

"We delivered strong operating and financial results across the board and launched the Cloudera Data Platform to a great reception from customers, partners and industry analysts," said Cloudera interim CEO Marty Cole.

Now what

For the fourth quarter, Cloudera expects to produce revenue between $200 million and $203 million, subscription revenue between $173 million and $176 million, and a non-GAAP loss per share between $0.02 and $0.04. At the midpoint, that revenue guidance implies year-over-year growth of 39%.

For the full year, Cloudera sees revenue between $700 million and $720 million, subscription revenue between $659 million and $662 million, and a non-GAAP loss per share between $0.19 and $0.21. The company produced $479.9 million of revenue in fiscal 2019.

Cloudera completed its acquisition of Hortonworks in early January 2019, providing a boost to the company's revenue this year. That deal will be lapped in the fourth fiscal quarter, so barring another acquisition, Cloudera's growth next year will be quite a bit slower.

Exactly how much more slowly the company grows next year remains to be seen. For now, investors are happy with third-quarter results edging out expectations.