Please ensure Javascript is enabled for purposes of website accessibility

Why Cloudera Stock Climbed 17.7% in December

By Keith Noonan - Jan 5, 2020 at 5:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cloud data company posted encouraging quarterly results and closed out 2019 with a 5% gain.

What happened

Shares of Cloudera (CLDR) rose 17.7% in December, according to data from S&P Global Market Intelligence. The cloud-services stock gained ground after the company reported better-than-expected quarterly results and raised its full-year guidance early in the month and then continued to trend higher amid momentum for the broader market.

CLDR Chart

CLDR data by YCharts

Cloudera published its third-quarter earnings on Dec. 5, delivering a non-GAAP (adjusted) loss per share of $0.03 on sales of $198.3 million. These results came in significantly ahead of the average analyst estimate, which had called for an adjusted loss of $0.06 per share on revenue of $189.1 million. Guidance for the fourth quarter also topped the market's expectations.

A cloud icon.

Image source: Getty Images.

So what

Cloudera's annualized recurring revenue came in at $697.4 million at the end of the October quarter, representing 13% year-over-year growth. Operating cash flow for the third quarter came in at negative-$5.9 million, but it included a $6.1 million adverse impact resulting from payments stemming from its merger with Hortonworks.

Backing out the merger-related payments, Cloudera's third-quarter operating cash flow represented a substantial improvement on its operating cash flow of negative-$6.8 million in the prior-year quarter. The improved operating cash flow suggests that the company is realizing benefits from the Hortonworks merger, and combined with encouraging guidance, these strong results helped propel Cloudera's second best monthly stock performance in 2019.

Now what

Cloudera is guiding for fourth-quarter revenue to come in between $200 million and $203 million, with subscription revenue expected to be between $173 million and $176 million. Management expects an adjusted loss-per share between $0.02 and $0.04 for the quarter. Before the company's third-quarter earnings release, the average analyst estimate was expecting an adjusted loss of $0.05 per share on sales of $196.9 million.

For the current fiscal year, Cloudera is targeting total revenue between $782 million and $785 million, annualized recurring revenue between $700 million and $720 million, and an adjusted loss per share between $0.19 and $0.21.The company is valued at roughly four times this year's expected sales.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Cloudera Stock Quote

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.