CLDR - Earnings call transcript Q3 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Houston and I will be your conference operator today. Welcome to the Cloudera Third Quarter Fiscal Year 2018 Quarterly Results Conference Call. All participant lines have been placed in a listen-only mode to prevent background noise. After the speakers’ remarks, there will be an opportunity to ask questions. that call note being Please Instructions] this is conference recorded. [Operator

President, is begin and Kevin host Corporate your Cook, may Your you Vice Development Kevin, Investor conference. Relations.

Kevin Cook

fiscal welcome you, Cloudera’s Thank afternoon call. and Good third Keirsten. quarter XXXX conference to

and in Officer. Olson, We issued press Chief Co-founder, Cloudera me Chairman after will Chief Reilly, Officer From release are today. and our Tom results Jim close Executive be Financial the with discussing Frankola, announced Chief market Officer, Strategy Mike

and differ under in from release, call. net the conference the release in XXXX. September other are press “Risk rate, materially follow-on caption fully those our forward-looking prospectus on will we the make this in risk more statements the detailed statements course “believe,” call, Rule During and in words from future our are offering actual statements could of differ the an of was uncertainties this results to filings events our to that to in “anticipate,” caution future SEC and under performance and factors are described related that those actual could that use the cause SEC. press final are the Factors” filed other the XX, the and “expect,” company. future denote forward-looking and These periodic These risks such the of expansion regarding these to final includes results forward-looking cause materially as events. forward-looking risk factors consider the of statements words “intend” explanation identified prospectus our with Cloudera’s you financial by with Generally, XXX(b)(X), statements. also the important We material subject which to

amortization will present acquired financial GAAP of compensation this intangible and expense measures. Non-GAAP call non-GAAP assets. measures exclude stock-based During and we both

superior measures our of impact in provide IPO non-GAAP stock common shares share stock conversion our be weighted in the In issued date with count the and we of all Consistent Global updated changes of the of not GAAP or encourage on issuance periodically isolation our performance. that the occurred addition, measures published we for, customer These intended and weighted-average you XXXX preferred a the consider newly are information. as practice analyzing the XXXX when to to non-GAAP common from, if assumes constituent a into list, and Cloudera’s FORBES count effectiveness. considered updating substitute on to and Global list based XXXX to Data.com we’ve the results our

as comparable SEC information, non-GAAP the results. The release press measures, Form X‑K. third of to our a complete GAAP please refer of figures, press fiscal to quarter also quantitative our regarding those directly been XXXX most regarding For our furnished information today’s reconciliation the has to a updates financial Global list, release XXXX and part

as a In note we We today of the any and of these forward-looking future conference result that addition, to as statements make assumptions to that December undertake this statements XXXX, this new update we obligation or based please on date are reasonable no X, date. call be information that events. of believe is

over call the to turn I’ll Now Tom.

Tom Reilly

mission shift in you our strong public Hello, another driven quarter world the discuss had of In Thank via results. the quarter analytics machine the everyone. We cloud. customers the execution. we all, to in around by grow, significant their being offerings for meaningful on-premises and differentiation and our today learning our optimized connect, cloud, with us businesses and protect third help for continuing performance made and progress workloads consistent sales to cloud of to

XX%. $XX.X intelligence, hybrid architectures, factors the revenue secular growth million, in market contributed artificial driven demand quarter and IoT. of powerful trends of third to growing We are also benefiting multi-cloud for representing These and year-over-year from by

year-over-year. Our revenue subscription grew software XX%

and Our high reflective confidence of and dynamic, our digitally they support results strategy increasing an our model. connected in world market are by driven business growth ever a

on opportunity focused the We’re big, long-term and win. to investing

While industries, platform our is adoption gaining customers value and companies are greatest customers Global with that XXXX rapidly. past our quarter. all added is this it net the of largest sizes expanding across We and widespread most new XX

revenue million, than a More now half importantly, more $X our their of customers job growing QX success. refine do we continue targeting, and commenced large high deal roughly us customers. our with of large existing understanding than and relationships good in customer have larger of subscription in recurring our to continue behavior collectively initial We of The were contributing enterprise we joined excess quality revenue. to customers customer annual usual. XX enterprise sizes Also, customer software with that

to Now, gears shift strategy. let’s business

environment quarter, this highlighted on-premises. all capabilities focused enterprise-grade cloud and analytics. and As our learning we of “the last for a tools acquisition call machine The organizations Fast the leader a value platform oil, and flexible, intelligence of to in quarter’s choice no machine learning. most Last we in according or resource to discussed for our artificial Economist call, machine Cloudera’s data of valuable analytics magazine, modern on for of and the but world’s longer The we data.” maximum in whether applied data Forward are for harvest learning value learning provides Labs, is types, machine mining

traction Data our Workbench. with Science detailed also We Cloudera

in was in team production learning, than integration a Science on than the in more of quick multiple on our dedicate and advancements should is that Google category customers in be Web and on‑premises “Winner” updating our call the mixing update direction Hilary data At continues the a science you business. Reflecting offering, Fast Platform” Spark, our and exciting. more cloud like Amazon innovation including our named of our her with the machine to cloud-native Cloudera enterprise data the company’s to Since cloud I’d “de also and Azure Machine public IPO. Readers’ that environments, operate, focused of of QX, a Apache Choice component the the Microsoft major our architectures, across this have brief learning up Learning was enterprises It on Spark, that strategic Readers’ delivering from prestigious impact Apache and and Cloud. Award the the platform Forward standard” As in team quarter’s recently we machine end facto workloads as the the Labs Datanami Cloudera we our for Awards. is progress With going winner infrastructure Choice noted the to key allows are well to XX% having deliver, that selected category. cloud in Data time Services, founding time Mason Science Data Enterprise “Best follow-up, of the providers: manage Workbench move on and all had XXX very released

they Our -- multi-cloud customers typically favor increasingly capabilities. the in both and are operating demanding cloud on-premises and

continues few the our While year-over-year. we’ve more conclusion important grow leveraging utilization of of customers our of of number our growing cloud on-premises cloud leveraging platform faster. public At utilization hundreds cloud to of things. nicely, the on XX% infrastructure, Working a than public platform capabilities is increased learned customers with QX, very significantly infrastructure had

much governance, storage have and And, removes our have First, or of on-premises set our and solution our regardless layers. that in strategy product to second, and run want applications, underlying cloud of across reinforced whether for important security These their our desire cloud customers multiple a they consistent of conviction compute providers. several our most led innovations. where of of recent learnings and the management, customers managing a complexity tools

our Altus, as Cloudera offering, now Platform First, multi-cloud. is a Service

launched Cloudera and where Second, governance and multi-function, resides consistent SDX. covering another Altus types. in of SDX Shared data framework storage SX, data the -- multi-cloud And, cloud, whether Data security deployments across regardless of Experience, we’ve is or HDFS, on-premises AWS’s Lake Azure’s now Store, multiple Data delivers third, tools a workload management, mechanism.

imperative Olson, significantly multi-cloud announcements a and of from underlying cloud. Strategy succeed challenging, enterprises through the competitive our perspective please our to leadership the multi-function very These business practice in cloud. for Officer, and consistent an is moats and review and Altus this proprietary building SDX. the co-founder and ahead. increase technically, long-term exemplify innovation, will Chief it go the developments strategy in of Mike is Mike, our While power

Mike Olson

brand just introduction of announced week Analytic I self-service in Thanks enterprises, first will enterprises re:Invent to perform the This family designed to -- name Conference Altus past that as and intelligence Cloudera cloud is cloud the the the cloud-scale we the that data This available the member available which well. Altus quarter with of at on now available cloud. In second natively quickly creation workloads month. data am beta Altus Altus last member on for be new is DB elasticity announced to of Engineering, analytics, while AWS. that we for next infrastructure. is most the of the Altus the family Amazon allows we family, multi-function the was Altus and costly of data announced high-performance warehouse Apache movement. and share DB public through the And SX. complex brings service our that in cloud is Altus Data that Cloudera SQL data against business multi-cloud of workloads ease is delivering to engine contemplates excited unique data Azure Analytic warehouse stored Tom. the in in easily Microsoft public with It analytic SQL first by and Altus architecture them convenience to Cloudera eliminates Impala natively that Platform-as-a-Service large offerings. workloads a the demanded Altus and run Cloudera the speed, the commonly allows QX,

allowing new more ever in their be market, run competitiveness the heightened transient run processing would providers deployment, and that of than management our For our expanded of work. handle addressable jobs elastic the and In and words, public other they’d provided offerings and analytic wherever center. customers these operations, prefer. a on flexibility addresses Altus we to house Platform-as-a-Service impractical to we enterprises offerings, against data otherwise concentrate workloads set cloud to have data

introduction in and across public only QX analytic our Altus, across of development all for platform. of three the of security, and production-ready all Data the Beyond our to in at develop Strata work center September. Data integrated major next runs market in years Conference SDX the The Experience This on Shared that is governance data the the the major result was is compliance Cloudera enterprises clouds. on the system services

why explain a me Let deal. big that’s

CDO, If protect required you’re an CIO by data. or sensitive to law you’re enterprise user

gaze used, are making with is is sure generally essential high-value applications. you But that regulators rules data for governing business how of These You’re comply data and whom. constraints. by under the non-negotiable

it. new do to or learning to statistical need You need enhance models. to be machine data able clean or arrives, query be analyses to as it train it, to it you Then, process and able to

of so copy if and Legacy for end-to-end for at multiple applications, siloed. data uses data. governance or regardless HDFS services physical concepts. data. the We today. There’s You increases policies, step, truly This -- data that database, use ADLS and forced management need the to as making to to cloud ensures security the service, questions or but customers the that or enterprises’ precisely native from processing, answering that’s same, there There’s -- providers, processing a replication search regulators’ it analytic cloud staff and complexity and move At our result no copies policies are NoSQL consistent cost. and or are defining security, for work regulators a is the system systems. easy the whatever shared SX use eliminates and data or just to a natural satisfying of do way create the and data. It SDX or And support lineage, on repository problem analysis language enforcing workloads to set identity data. that, every of and security that need were location shared operations centralized new management, terms for and look a you’re SDX available governance. for you doing, solves single, The no metadata risk, access ask. requirements. movement single SDX the are

You traceable, compliant same enforced, in a policies manner. get the

citizens. There’s with integrate and copies, need no multiple SX without GDPR with in with compliance talked like. All on all With workloads advantages customers’ against users, to in engines SDX, can governance frameworks risk for of and have Data enterprise risk. means Those they and different requirements, cloud! policies the that Altus already all only in we complexity And data European I mentioned, and Altus the consumer Analytic grow regulatory those, and infrastructure HIPAA across the public data and get and provide new about all I earlier; wherever requirements need associated the Engineering the finance, under the DB healthcare their natively run risks to places. make cloud our like run in inconsistent services we analytic processing of regulatory no PCI-DSS ADLS. can customers

Tom Reilly

Mike. communities Thank a Cloudera illustrate support cloud of applications. AWS studies. and case the of customers the selection to market deploying and patients manufacturer customer conditions, in Cloudera are for therapies to no sciences few -- researchers bring therapies who There’s faster. and to cases speed understand than better you, on and to on target who XXX on-premises clinical and a different AWS the embracing in value in entirely the SDX analytic uses and their healthcare way instrumental With with help new than environments our many public and run life has other Celgene, effectively hybrid or incidence in more Celgene trials, the cloud. is cancer -- sector, clinical immune global epidemiological helping to inflammatory better platform in drug disease of for use research

more is and impossible been that enabled to to application consider process Celgene analysis, data patient for dozens cloud-native healthcare reduce by What’s Celgene is cloud. HIPAA-compliant platform customers by have pause similar XX% and all recently. Celgene that for This costs that to is run use XX%. operating the life more, way Our times delivered applications SDX cases, operating a in the cut -- would or us. changing It until of sciences -- run allows

to is Another improve doctors they how care those the Quest medical reason and new billion in platform, help from secure results, compliance sources of platform Using care data, Diagnostics. these with can need. early transforming healthcare Quest our example Quest patient combines determine management. that what lab can can Quest is risk data disease, the this more is way a than help in analyses. essential. of at is XX is our with legacy identify providers other patients and stages and SDX HIPAA perform better Because data Cloudera

its de into runs data Another institution, a on Cloudera Azure. BCP Perú, Peru’s Azure, customers Banco turning our on Cloudera is customer, del Microsoft financial business With and Crédito platform largest for asset delivering for today and competition. new BXB generate -- businesses, new Grow More. that businesses streams. They get BCP’s revenue More than about XXX offering insights services Spanish use incremental clients their small Crecemás

allowed consistent reducing Azure its could development advantage to strategy policy international the on BCP -- our for of market its at by XX%. industry. The Cloudera way was work. by taking quickly example services great regulated in get and SDX “plant a enforcement implementing BCP, to across For highly support roll time only it very of BCP Also, applications, out flag” these innovative is

its is BCP government delivered like the banks, mission more Peru, critical thought the our as cloud. this -- As flag” the these the times the operate or and of follow major platform of in even more rest region. manufacturing, public cloud BCP financial region the to XX these Most offerings. in applications own customer of “plant other and in be we’ve the demand the largest flag” leaders care, in number becomes are in largest by of providers’ industries tends increasing largest regulated valuable than agencies public world. country in A is one we the telecommunications “planted seeing now our cannot or strategy Whether right. often companies services, house the bank significant around win health way retail the one of to each one one But to

can infrastructure. review on our and realize they partnerships QX critical Cloudera’s growing mission with results We as built now Microsoft their large enterprises detail. will SDX with to in Jim… platform applications Jim are with cloud bring Amazon pleased financial our

Jim Frankola

everyone. Hello

in of fiscal new As represented XXXX. customers an $XX.X against year-to-date QX Tom net of This over XX XX% quarter, flow XX% fiscal year. growth increase revenue, bringing million $XX.X operating indicated, of XXXX last and our In added progress consistent revenue we Global had million, representing total another revenue Subscription in QX toward steady year-over-year. was from the strong for XXX. quarter, to the in quarter total, execution cash break-even. XX% with objectives our We up XX% software third was

net Recall on our retention, churn QX, and expansion was “net that a expansion rate expansion For factors XXX%. rate” dollar-basis.

of this needs rates of our Open As Software than measure Tom validation in highlighted, Recurring view now technology These our on revenue. we success. are enterprises We and more Hybrid have the with Revenue These of XX roughly contribute the adoption a the Annual Source software largest and in half excess laser-focus high customer customers million. of expansion model collectively business of customers as $X both our solving world. of subscription

the review statement I references results unless non-GAAP results are otherwise to As issued XX%, today. note to press margin expenses a in was gross basis all are ago. XX% was quarter year. reconciled stated, Services than over last that, points earlier QX, and margin non-GAAP a XXX subscription results versus income In the gross remainder the operating for of the higher year GAAP XX% Historical on release basis.

services time basis was Total are margin more QX incurred. as a subscription XX% margin sometime based Services degree of revenue have subscription services customer the revenue, to quarter-to-quarter our at the work costs are on timing ago. year subscription are variability sold These for and deferred when compared expensed margins to revenue to lead variability. revenue same XXX of as As up agreements. points timing is compared a recognition differences nature software, services XX%, high they the while project and and substantial gross of often than

operating year-ago drives forward-looking development grow. or million million was quarter XXXX, to model, expenses, XX% third shares the revenue dynamics loss XXX public for per information to year unique was our XX% XX% than customer margin based of $XX million QX, of XX¢ in XX%. offset tables of Turning XX% much or with fiscal points increased of weighted-average we last This year-ago on or to XX% Overall, to more This release costs the year. the million. Non-GAAP negative due improvement acquisition weighted-average improving of sales third XX% Please outstanding, the total an review in compensation outstanding. Cloudera up million lifetime of which in the This associated revenue. progress loss Research the an and with G&A of quarter the a $XX.X high historical operating This X,XXX quarter the million in million last basis was loss a of as compares was expense third XX¢ third shares and quarter, of operating $XX.X shares outstanding. representing XXX of of customers compared quarter stock-based third for sales value, revenue was operating higher expense reflects when company. today’s for based in quarter $XX.X share operating efficiencies customer the by cost period. the was and and revenue, $XX.X a from was per down share regarding compared to loss for as the had additional press from revenue. marketing on

the flow up the up in negative year-ago guidance to XX% is quarter marketable million, to turning $XXX flow, year. the million were for revenue model, at continued collections negative of $XXX which million for updated leverage our sheet cash the deferred I fiscal cash, $X.X $XXX operating million business securities, will year-over-year. QX improvement Total by end This QX cash and conclude compares guidance restricted initial cash, expenditures deferred $XXX and end operating Evidencing in the in and million efficiencies. of the cash quarter, down from third the period. was third QX. Short-term we Capital XX% equivalents, quarter. operating for providing driven $XX.X revenue by in in Now, million at strong exited was was balance year-over-year. the of flow cash and with $X million,

weighted-average be XX% XX% share total We be to with QX outstanding. up to expect of Non-GAAP growth million, subscription million, $XX in based QX software net last XX% and of range loss on $XX between approximately shares representing projected the year-over-year. is per approximately XX% to XX¢ to compared revenue to XX¢ to XXX revenue $XX $XX year, to million

to revenue to $XXX $XXX $XXX year and be XX% XX% approximately software up XX% to year-over-year. growth, in with fiscal For total to million, revenue we range the expect XXXX, subscription $XXX between XX% million, representing of

expect We growth drift of a of with more subscription total as rapid to the continue percentage due to partner revenue traction to revenue downward increased coupled revenue our ecosystem. of services

services revenue net services concurrently We originally QX In services weighted-average XX¢ a approximately deferral sold project of was greater-than-expected XXX of based due anticipated will with million than percentage to caused to non-GAAP be share per This lower addition, by loss XX¢ revenue. higher software agreements. of on outstanding. shares

over We driven flow or to was XX% cash for capital cash $XX be This improvement a to million around anticipate year million, roughly leasehold million be expenditures revenue. last for improvements. expect year operating of $XX substantial negative the revenue. flow We XX% $XX operating to roughly when by year of the is negative negative

model land expand well. business and Our functioning is

marching break-even, for will made concluding while with sustaining over turn and in rapid pleased progress flow driving to toward in are higher margins Tom cash it the growth. remarks. operating I some We we’ve revenue

Tom Reilly

Thank you, Jim.

innovation of Apache QX, launched of Before all moment Science Data since multi-cloud have it. of for the Since Engineering, innovations market capturing on few essential Workbench, The as Data months Labs. offered we acquisition Kudu Cloudera is that with and a the to Altus on is significant to It earlier and extraordinary a and are addition with I DB, last Forward of SDX. reflect lot produced builds we questions, year get Analytic more just opportunity multi-function quite in we Altus introduction IoT delivering the of Cloudera like we to Fast Altus large with the we This would accomplished Cloudera the reported. Altus we’ve spend announced a Azure, to is in that as we’ve innovation. all

high a We’re staggering. in of market the stages and early change pace of a with rate growth is that

consistent Our navigating team it we’re with strategy. and execution in confident well our is

to operating continue and we’re remain We entities leverage in globally, and and with the valuable demonstrated enterprises on with focused share most pleased our long-term will We model. the gain large public invest continue our and the engineering differentiated to thank I’d to partners, the in remarkable recently. delivered they dedication technology. customers community and developing for innovation organizations product our customers, their sector the have our business and to in like

machine I team and and remain our The of Integrated investors. Group, alignment as each differentiate As our board serves extend these of competitive Also, moats also very leadership. Strategy we Intel IoT roles and technology the to perfectly President continued we’ve products Thank our have at Operator, portion Products, focus you to please Global discussed, like Vice partnership the customers, of learning and strategies. developer that Rosemary The fits our community, between grateful and innovations gained the General category Intel. collaboration with partners, appointment Sales, IoT in is call. our to Manager, helpful connected on our and member, strong in the Cloudera, from the of to insight with and many Q&A Internet newest Intel has Schooler, widen our as corporate and I’d Her welcome represents services. Rosemary and respective begin especially our all. Things and that

Operator

JP question line Murphy from the Morgan. And of our first Mark Instructions] [Operator comes from

Mark Murphy

and you that large joined customers Kind of script initial in I quarter drove the stated it? in of you because than that intriguing what the initial on the I QX the you smaller Tom, higher change wins enterprise of Could think your through usual. in said perhaps that larger this us sizes have think magnitude side. were historically deal quality walk and been

Tom Reilly

Yes.

at when So customers than GXK. the our large first majority of more we a new up, half in enterprises, or were our look

the So to winning. And these ASP. end a are, want to really tend GXKs higher start at we at of They that's market. where the upper be

XXK. the our up customers whereas our, XXXK so brought GXK of XXK. success And to be so up initial quarter, is these brought initially tend larger about wins. that’s enterprise overall Well, past to starting driven they GXK by And than traditionally, the our average part this around greater some in our point, large in average

Mark Murphy

enterprises, purchasing a larger necessarily. different of at with not set it's So products the

Tom Reilly

spend, us right, more No. larger the verticals, right wins allowing really verticals and at use the to to in right cases. expand in to methodology, enterprise and with It’s propensity companies continually it's get so targeted we the have propensity the our target right

Mark Murphy

to you're these a can help itself to and kind ML software And Cloudera global of machine that of be also you I extent for any in, but attach topic as to think the company usage, recent seems of bringing say the some it AI in if would trying months. try percentage us Cloudera, new you almost perhaps bookings and is think high little and seems Great. core every of to be follow-up, of to the and you processes. Tom, AI I wondering trend learning, AI machine were on the Cloudera – I which learning, a different for truly underappreciated massive the a engine mix or peg just AI categorize maybe was scale as to that which framework is to critical for

Tom Reilly

Yes.

So on strong think very and learning space very in the the we a machine we're position. one, focused and winning AI in we're

need building really need back company are you First is cloud architecture scale built our founding that to of the and like up to on going to blocks, architectures. leverage the Here the of, online technology you

early So I commend Mike his vision. for

our hub, we've Second, with Data called industry our the buy. that's customers built it, data what Links, we call

in going ADLS. of and the hub lots or have data SX need in you’re to like a data cloud you You in block that find the storage put to it and

on Spark, So and Then can now, adopt the have our prem access data into we put large to cloud. data Spark, sets we were platform. in we first the the sets large

We in already doing customers with customers the have believe, workloads. of production more these than XXX Spark positions gives we strongest us, ready production. That one

analytics, super and about source forward the is Our innovate for machine will to strategy community. open the be learning optimized We're Modern modern platforms with Spark. to going excited for the continue cloud. platform

Spark our think lots SX already Impala and database the Analytics things are There that really is to Apache well it’s for their development. the and successors ADLS ML. is analytic against We following leveraging us operating that SQL of in these early innovation AI positioned for be have now in and in large excited and our we’re of here. are engine I leader cloud to and choice platform enterprises that’s

Mike Olson

experience on out the patient I’ll because the going tech, to Hey, is it truck Mark. capabilities. see to They a is on will We to In want we've one anomaly value want I to try to data, do other just we in This do typically tons be bunch know trained and is on that Same answer Tom’s Mike do use In then whole of to of in like there quickly when ML. I'm delivering questions. to don't nerd across going transportation the are modeling it's down. customers delivering workloads say categorized to our sector. do I be old to I which logistics, every Olson. really pattern customers business in in in will across we are business of or got recognition, verticals cases and healthcare, customers customers verticals underlying know is healthcare, unique way. consistent different want know platform, analytics ever think to of break break predictive those financial and the likely what What services, just across single manufacturing, that which board, fraction detection, readmitted ML the that will it's in hospital. I broken so not I out say don't we've true out the

Tom Reilly

Mark, one last thing.

acquisition here. team research got applied workloads. demonstrating our Fast that Labs We've machinery now of and leading Forward the AI leadership is Our position around algorithms

Operator

And next come the our Karl from Bank. from Deutsche does question of Keirstead line

Karl Keirstead

Maybe two.

in comments, mentioned operating First you're flow marching your breakeven. towards you that cash

fact on whether Thank fiscal you. guess that hit you'll how cash for the you're point I So and has is my last breakeven? when quarter flow full changed the marching whether fast in view performance the ’XX plausible year is it's and that better question in your

Jim Frankola

the on marching laid cadence We're I out same we we will that take when went that. IPO.

to to positive. giving business we're increasing we guidance as and with point, four flow this we very target so seeing term too or are are the from it’s confidence from where But our XX cash the and execute to away estimated we this the leverage flow quarters cash providing then completing end now. year It's us model, margins. pleased to days positive ’XX at that we of So obviously long six are in fiscal in March anticipate we're call that going soon

Karl Keirstead

part have we from follow-up, the we the or because the Azure short, sizes changed call, on it have is keep to of portion you you terms know, a a quarters shifts, but there implications few encourage as that any would bit help you then of this I what emphasis that perhaps may this deal really the financial just or call Tom, you I if Tom, come what is or and on metrics in us deployed of it Jim. how earnings a little AWS chance understand are have versus you a questions or part just of now might if might us revenues differences financial Billings ago put cloud And more in or And mind? keep key Cloudera that mix lot what through remind for affect maybe any need Jim, then margins, other wondering to in thinking deployments would at time how cloud the the even I'm IPO?

Tom Reilly

is Karl, So Tom. this

the and operate about of our need One, very our customers, with that sit cloud. that public especially of premises do and they're to software enterprises, Altus customers don't to in transient nature every going the deploy workloads, choice. up. and on one workloads They when cloud, often elastic believe thing And First take where we really public We advantage would multi-cloud. not we or And frees our is it’s large certain there because customer, you of is down an the only our either exciting. in are what's cloud care software. this

customers that premise. on are So to there want workloads do certain

multi-cloud flexibility of licensing where where If out seen on that them our environment ownership. our this way and between sell find and move Jim like having to separately, not maybe they don't helps? where sell them we’ve dynamics capability cost a instance ultimate allow cloud greatest license And lowest customers forth. we give them very flexibility So the that products customers back to because the our can We break we then the out we the best performance. we and the performance is is as about cost do to our workloads for best find get And just prem. talk

Jim Frankola

Yeah.

workload a we in lived environment. The is cloud, the the priced on lived in So the a distinction versus level cloud same, like are slightly long way think lot the ephemeral discounting prem. basis, node workloads per look about long is better the it's long whenever margins a cloud because lived homogeneous of the the workloads. They’re more same on

The basis. long is lived than of to priced moving the other great consumption us. very workloads a are it’s financially growing workloads on a differently. there impact transitory So a for That’s cloud customers our environment. little fast It’s new workloads, opportunity or ephemeral

view as frankly, in and impacted growth that's the quite or hasn't few we financials the really much. in of for beyond very new next quarter the So us for this the quarters business moving And baseline. above and terms it needle a that

Tom Reilly

see finally customers the did we we to on why And workloads. that’s like move our faster frankly, helps that, would faster. all and those Karl, our It cloud to to to help And cloud work SDX have SDX. the behind the we is customers get move just quite

better support business the Now, it’s in can in greater visibility, because innovate margins good have and have we for good cloud. it's them, we real us quickly we for our also

your So hopefully question. answered that

Operator

Sanjit from Stanley. from comes question next the our line And Morgan of Singh

Sanjit Singh

A of in QX. very nice set results

in of margins improving that I the basis expansion year-over-year. been by XXXX think things I've again one by impressed is the points first year-over-year margin the quarters and three

is alternative the Tom your accounts want customer ability side, today from either you identifiable there in IPO. the two on during time anything chime or your acquisitions cases, of customer use efficiency changing Jim, those being or perspectives more these of the to in, versus anything of So terms if maybe changing into with to expand

Jim Frankola

quite do continued Cloudera I of change and application but we frankly how of things, Cloudera. a wouldn’t of more say

the and for cost proactive better So margins. the maintenance, customers support we support are expand thereby improvement organization go parts We're our better margin anything software our being reflected to and our the and technology seeing propensity quickest in customers implementing is ability we of the to dynamics to understanding predictive the of and even you is land getting and still optimized process market better which With but to P&L use in than increasing and field, highest for have spend more lowering that, to example today our of model. at drives respect that our own scoring and grow. unique the are else function do to the what in

over to million. customers have million $XXX,XXX our term a model march sales long at off of for our we revenue, through As revenue customers get and throws frankly, profits, $X operating efficient $X quite very of that significant model

driving what's that of our margin growth customer really execution So is expansion.

Sanjit Singh

terms a in I QX, year. then large of next or out in but anything QX into seasonality looking year out terms into know was QX of a present that think fiscal last sequential may we either call to when we comp year, should going strong of about, we about sizes specifically, to we and And basis, QX guide tough think to a billing need very, how deal on that QX last very don't

Jim Frankola

not on a billings apply very for basis. QX was measure when Clearly, a normal. us quarter-by-quarter fairly you it accurate Yeah. is

You I early pulled renewals than billings it more QX. renewed have puts million that total, there's early million balance where $X average or late QX maybe in to in in some If you were probably have on at renewals. look and $X or takes and of

would -- you're model, normalize billings QX to you if a might million and million. tune the want or between $X to So $X of doing QX that

Beyond that, models. year, of in to comp relative most which last we're just staring I reflected at you a have your tough think

Operator

comes from And Pritchard Walter from of our question Citi. next the line

Walter Pritchard

as big week think the We competitive dynamic some with are the yours were having Altus, I'm Big Data I focus, like was native deployed pretty be independent whole at platform all a one that other at wondering that looking re:Invent an thing last can versus Space has places. cloud customers in at and changed you

Tom Reilly

to public there. move think we house continually were to we well Amazon Altus in week. workloads last actually offerings. the interest. great I large as at customers great, Walter, where that its That's We believe going And Analytic announced DB has could. our believe re:Invent We yes, are

want developers lot do believe like They're a of of metadata different analytic it those catalogs and our house SDX However, what not and sizes brings, environments for and security to multi-cloud or are we workloads. targeting technology not access have They and customer's market equipment and hybrid customers They really controls governance all types environments. don't offerings startups. of and support that companies addressing needs. have

data attendance the and were there and we’re accelerated an move with positioned think we that’s analytics to we as re:Invent to conference cloud well excited that of think I all news So infrastructure. ride at and public

Walter Pritchard

or I customers make there? around anything to sort of they additional start but sure, commitment kind when margins is Jim, asked just then question, make think Karl this talk there the wanted about to Altus, And of with

Jim Frankola

No.

acquisition a similar profile a customer still with margin it's that of young to point, this But existing to cost business. the at market, establish too be looks our really soon of business. Altus So for to

Operator

next our question Turits comes from Michael of And from Raymond James. line the

Michael Turits

this you the can and SDX, how One, things. business if is traction much customers, wondering also at what quantify for pricing does work? Two I cetera was -- on point can the model how et you Altus

Jim Frankola

piece first. to SDX talk me the Let

separately. not priced SDX So is

and to to allows customer customer technology growth. move cloud customer much For more faster. us, allows to them adopt is it the workloads to SDX faster importantly important our and see success

a was entire cloud continue our prepared young think high product, customer provider. do I disclose go With will margins. So product very very help and the we discuss been the Altus so an we're success don't out respect products? comprehensively think any not by on earlier to really We only question margins they will looking to two base by the our help We gross similar software to quarters a we are existing way, P&L. at in product, Altus and bundling to is numbers, and it's now. I’m Altus, the label at it SDX it level. not across numbers of If yet gate going the grow for to is, individual a which be. back white And question to customers

the software -- cost existing our the So like XX% Altus margins the or in products. should be software XXs for

Michael Turits

question way it quick in good It OpEx. that Was I that a a was as out. saving a actually push like have on looks And And on very pointed margins good OpEx? any out one anything on was one-time you control. just quarter is OpEx there

Jim Frankola

clean It’s a operating in quarter of expenses. terms pretty

normal our QX. there seasonal patterns, have in was nothing abnormal We but

Operator

Brad Our question comes next from from the line Reback of Stifel.

Your line Mr. open. is open. line Reback, your is

of Our next McDowell the from from line comes Greg JMP Securities. question

Greg McDowell

wanted ARR I excess customers with X to in than XX million. the about more of ask

I than more think up that's XX from in QX.

new question could for about and just these I don't So but or of know across customers possible sort if talk starting million you of with plus $X my million logo are existing ARR rough wins over just XX math Tom, it's some out that it $X with that a roughly That's threshold is first threshold that contract. Cloudera a over are whether of type that customers question. bit or moved little Jim the simply

Jim Frankola

our our our but on million we this and they Greg, larger, the high we're start over demonstrating get dictate rate, proud customers. have of enterprises, expansion large our on just the sales extends they with in us strong had so come and situations should buy think which we strategy. where well Where our can I getting continuing net while is at of expand. seen that that We really all customers does We're them And $X yes, up. new demonstrates -- propensity spending that grow we land to strategy not and all large and cycle. start is with but enterprises of customers in So started with where started very large end have to ranges, past believe those focused focused be to expand, is

started expansion happy machine. to as so our just into get we're quicker And and get them

Greg McDowell

know Great. all major on in time the that's And you're and XX% up first I think one question the I mean providers we've customer year-over-year more heard mix cloud, within the customers. of I then certainly cloud number the

of of just numbers, portion running within the that base obviously, or cloud that in I'm most maybe talk cloud, Cloudera all traction do in customers of right you you're customer cloud lot in Cloudera going see getting wondering on but mix a cloud you if and both -- be premise new a the away, And those about could just helpful? so are just would these the Thanks.

Tom Reilly

enterprise have So provider choice and any Greg, and value bring many workloads they it’s the getting cloud going focus start their back be large premises that know new religious of and what the with to the in of they on our strategy, working cloud, like a customer cloud when logo, on us is have they in to picking providers with will we and of experienced. the They about back so they to but don't flexibility first. can they them

application well. to a the regulated of application first to our that the doing of moved one I knew at because of like Azure get larger I a in through if provided of cloud. just think to time our shared And process story Amazon they a could didn’t analytics they they experience banks long they our that go their IPO, Amazon, evaluation with about didn't their cloud working equally move

customers premise cloud, then starting examples starting we cloud. we to workloads move the the in different them the enterprise, to on have right but points start and have of them tend large most in So, see of

Mike Olson

be see workloads I’ll a and the in cloud cloud a model on our is the add is of able support enterprise want some absolutely particularly more will across data the SDX on in on in than SDX always our We multiple run will and more, have concentrated proprietary -- run able cloud, where Mike. a pardon that large all me, in security the just our the innovation, to to This run one lot want consumption we've point. they but platform, governance that they'll more thesis and invested cloud same applying is on only clouds. and to different prem center, clients to we quick be We’ve across technology.

Operator

question from next Lamba the Our Mizuho of Securities. line Abhey Instructions] [Operator comes from

Abhey Lamba

Tom, certain heard around the rate you of you cohort if your generic elaborate sites? you it I that more that? that analysis, or board industry largest metrics prepared is some across look up think at rapidly. seeing if please or it Can you are segments comments Can more just I customers also and share mentioned within expansion kind is right, you expanding in it are customer you the grow on

Tom Reilly

we I clear, of I To surpassed prior. said $X expanding get were the We're customers. than XX be proud more they have our are revenue. rapidly in with largest greatest largest our expansions We think customers annual where is that large enterprise our believe recurring more don't than million customers software

demonstrate rate in our strong, one And is cohort customers Our even large by our expansions. things six, is part from to we net continuing didn't to all talk that of That the seven customers expand oldest our exciting expansion at to very faster. larger is tend ago XXX%. continue about years are customers of driven expand

continue find we into to at to see and pace. backdrop continue And a them production get the that's this growing data them use exciting cases, unrelenting course support of we so is what's if we get right and them quickly the about customers and and is help expansions is the

that are enterprises. those drivers so on focused we're the large why And so

Abhey Lamba

gave Moving you initial Altus -- more type where Can you helpful. launching new of a that of should the feedback you're that color these information to us very we on little out launches? bit workload new was the Mike, of expansion just see on on Mike, features us Altus, enough talked what give come been and some what's

Mike Olson

with to as stand is goal common up. to key possible easy Our the workloads Altus as make family

in to that data to to the manage. and think to So allow order you think dashboard jobs to analysts, about clusters We have used simply servers and about they've got. want scientists

in the warehouse prep that done workloads, cloud Altus and Engineering style us deliver database Data now of the with to cloud ease hard and very for analytic data style, working taught an for we've in data The with adoption Altus Analytic use and addition, for in thing. interesting we're Cloudera data and actually workloads, DB. so simple has SQL just cloud And

spin storage very the very to to dear, is lasts and tightly a network policies SX time back and understand data in clusters the spin was invented kind and to Altus data, oh of moved virtualized and and is governance in level in innovation workloads of you across first and compute out, It hard that in to to that how legally I But work. in could the has up and those that's us think security, been applying deploy. it right. in When which go. still cloud, sounds most early it which in most And you that serious If stored Google, big big some platform SDX compliant this regulatory compliance, turns platform, long compute where when were want the coupled, SDX storage our come environment was that is be. and days down The of, way. a compute that regulated enables data trick that separating behave and most for pretty by was customers

Operator

Bank line comes from our from the And America. next Nikolay question of of Beliov

open. now is line Your

Nikolay Beliov

accelerated guys. billings points Jim, quarter. points. billings growth accelerated X revenues growth, revenue Nikolay my Subscription for do for Thanks wanted subscription just to Trailing a bookings taking months, Kash. a over and relationship refresher of here questions. between couple sitting It’s the growth. on by by Hi, XX quarter

impacting but know, should business revenues over bookings, of billing how you about next months. don't like seeing six Just, to booking strength the subscription you we line think the the I in the quantify same and nine are acceleration

Jim Frankola

Yeah.

So as pick like what amount. you revenue months, QX XX% growing atypically bit, of had same would quarter noise look year you XX the benefit was and drop you a have last expect, QX. should slight you and we strong billings is little QX. roughly of over quarter, you every QX, did strong quarters, the trailing single atypically obviously all be The off period bookings, at the a from a weak up When at some a

QX XX% year-over-year from still last of benefiting number So the from the comp year. is

XX%, guidance to I’ll growing underlying revenue year trying as Those sort you're representative once what of of full are growing total business, business. revenue the If the point XX%. really see, of of growth XX%, again being you understand the the the software roughly to revenue we dynamics XX%,

Nikolay Beliov

changes have my compete is around seen for you the what XXXX question last And quarter? the accounts rate Global -- you win when in last

Tom Reilly

strong as very remains in prior rate win our quarters. we've shared So,

We not change is the no dynamic. does seen dynamic changed well. dynamic IBM. our changing that only has Probably, haven't competitive Hortonworks with But that partnership as

step Just you analytic of the partnership, been it, construct Most to is merely Watson the relationship. that IBM is now we've that in as file and understand by that, Watson. against real positioning And when cheap garnered that value years Hortonworks look is several of and IBM our be two storage. Watson back specific competitor on in them at we as competing for

being handled by analytic the being are workloads me, IBM’s big IBM, Hortonworks. by trust are So learning machine Watson’s SQL The handled engine. not workloads

to Watson that’s and that good partnership on I IBM and we focused there we're so, allowed against this battle think us think dynamic. competing has so And really elevate a

Operator

And no turn questions call the further time. this to would the I we to presenters. like back over at have

Tom Reilly

the today, your the with thank and hour an you time gave for Well, One us support. us questions schedules. busy of for thank thoughtful you very you. you Thank

the about us product market. for and folks our excited shout We opportunities very our the position. the growth We're to competitive out last are team this all very excited One ahead engineering innovation. very, about great of and

course well those Thanks You've future. us developer investors helped for source positioned partners the the our in supporting and all open business. that our for our very get are of world, of community

So talking we days. in XX to to look you forward

Operator

conference much call. for concludes Thank participation. so This your today's you

You disconnect. now may

Cloudera (CLDR) 7 Dec 172018 Q3 Earnings call transcript