CLDR - Earnings call transcript Q1 2019

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Operator

Good afternoon. My name is Cheryl and I will be your conference operator today. Welcome to the Cloudera, First Quarter Fiscal 2019 Quarterly Results Conference Call. All participants’ 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. this being note, Please Instructions] conference recorded. is [Operator

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

Kevin Cook

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

Jim will Co-Founder, issued market are Chairman Strategy Release Tom and We our Chief Executive with and From after discussing Chief announced closed the in Frankola, be Officer; Officer. Press Cloudera Reilly, today. Chief me Financial results Mike Officer; Olson,

other cause more with forward-looking factors are on factors actual those statements this call. and forward-looking We future this words press important caution Form of as in words call you are actual that differ to Release the make and expect, materially forward-looking the release other we annual caption course detailed use Press and forward-looking materially risks future conference the from the in under in consider the differ regarding statements the intend subject XX-K will financial These and company. believe, and cause During denote to events future Generally, could that and identified of of risk results in in from the anticipate, our our to performance to risk those events. these are ‘Risk the could SEC. statements the report statements. described the Factors’ such These material statements fully that our by uncertainties filings results

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

Cloudera’s to substitute GAAP you and or non-GAAP non-GAAP count. a superior to isolation analyzing all from, encourage performance. provide a share we for, These addition, in measures we consider when intended are not considered average measures be to our results In weighted

today commentary guidance accounting the existing our standard under provide and we are ASCXXX. Additionally,

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

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

let Tom Now, turn Reilly. me to over the call

Tom Reilly

us results. discuss Hello everyone. fiscal Thank quarter for first you our to joining XXXX

underway initial well of As is in team to our I late expected. This proceeding significant market. will the elements review with the plan a portion QX transition we changes QX. our the given larger position very executed Cloudera transition to I multi-quarter shortly, of we capture early performance as the in QX am pleased and initiated of and

quickly and million, revenue me XX%. progress QX Total rationale, more results plans. $XXX a the of share was Let revenue grew actions, and provide Subscription concerning year-over-year. the our quarter a for growth XX% on software detailed year-over-year update representing our

flow of cash million quarter. net Our $XX operating and we the XXX%, rate in was generated expansion first

organizations have scale. at several global various in enabled we years, to data forms manage For of and amounts large vast collect

to into we In three protect led ability in and for their in ways; their for Our third, grow them and many have of an them digital more services connect respects, risk. environment first, greater with products second, in via compete enterprises their to market. to offerings help increasing insights to the this internet-of-things effectively; given customers; businesses the

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enterprise petabytes on premises cloud. data customers hundreds the and today we of structured have of result, in unstructured As large and many managing a

market this not as machine but accomplishments, to such On self of helping lead with the techniques now stream our using and customers analytics, processing. learning, We these are intelligence, out unprecedented market proud data get of We insights align artificial related satisfied. they evolution next infrastructure compute and continue and very of serve must this particularly business are elastic intensive public a capture rapidly cloud. in to cloud backdrop, value opportunities. nature, are from because making all benefit are the highest required technologies to we decisions the investments note, and these Against moving more and

initiated changes to As era. for this transformation. digital forms. latest in A market a and is advances Data set rapidly connecting our in completely customer enterprises position every transformation Financial technologies every of the to in rank driving to order and and digital in behavior insights the our and To competitive market gain world we April, are we and in [ph] architecture meaningful in Investor our Day and two go understanding making transition refined. and adoption from year-end is required are call Cloudera transformational of discussed Analyst foundation in leverage success, industry new enterprise The primarily for data. we the as long-term use-case a is of modern have evolution through

is is and combined effective, methods, competitive intensive our behind that traditional areas. our this, public these our their compute data. of these that to cloud are gaining managers the easy needs solely AI, are In innovation business have objectives, and insights and striving step versus their to completed and put from shift organizations three infrastructure. investment benefit both orientation learning cost company units get as plans in first in I’ll machine each of as ensuring Truly have exploiting elasticity technology out of the managing through them. support in and of the aligned of The the analytics. focus this workloads requires insights general power we with of or data the in to such means are have place new organizationally driving offerings cloud out These public leaders techniques who build The modern each

of learning adoption customers. machine the and AI lead largest our to aim we at First,

we Science than their more adopted With XX the have XXX Cloudera for large Workbench X.X, more platform. machine large AI applications. enterprises than This have that and development enterprises as Cloudera their ML/AI selected as learning recent quarter, announcement past environment of Cloudera development now Data

explain why clear success. for definitions, formation. decisions ML/AI is is no practices. The in me our There market are winning so standards, its or long-term Let industry early market these important best

In expansions addition to platform. because intensive substantial of will compute learning machine and machine workloads learning AI, these our offerings, our of the direct data drive underlying sale and future on naturally intensive nature the of

more are customers strides also and in work. our advisory great data improves, area, finally our course to thus objective the market. economics, to second making product the objective we analytics innovation, scientists As with our research, become of lead disrupt productive, our In

warehouse at Although DB. than the are innovating QX, and dramatically analytic in more customers analytics traditional costs analytics workloads, being With including engineers Cloudera lower capabilities encompasses performance, better our third, some enterprises. large more our our busy capitalizing warehouse, announced deliver of adoption data cloud XXX offerings are by newly on data to new been based than Altus used gained XX at more cloud we And Analytic now have accounts.

Altus, offering. have as our of expanded platform family We a service substantially Cloudera

Microsoft announcement made generally Azure. of In have Altus Altus on DB, we addition engineering data available the Analytic to recent

customer unified In XX% We context SDX offerings, have public the the Data experience deployments. base cloud. running now workloads many also multi-cloud customers providing in running Altus or cloud of for our the cloud released is data of Shared and of hybrid Cloudera Approximately the in increased using beta in QX, our XX% year-over-year. number

being behind the I our innovation leadership the customers be organization growth by areas these and three Our cannot happier them. in high general our is demonstrated of with managers and recognized being by alignment

are Shifting of a We multi-quarter and to transition. but the topic are executing evident, bookings bookings selling. for become initiatives progress. It will the these take to we making from day every on time

is strategy. our The in transformation secondary go-to-market

market we expand marketing This adopt time. enterprises our on very and focus, selling focused Here in increasing to efforts adoption. areas and we line cases, we support one sellers and field named consumption to instituted is Every our enterprises over and assigned market. executives. with of software decisions from of propensity to being now use target cases here: greatest learning buy target made the global update cloud expand. propensity the X,XXX a landing specific discipline of where selling multiple analytics our Also, of refined to are greatest are machine the have by to refining are accounts less is Three this business First, and technology innovation top our use hyper with in those

address target efficiency the stages channel cost in current market. our developing also customers to are We outside a of new early

Secondly, we’ve of part introduced as roles our field two reorganization. selling new

logo dedicated the role new first customers. The perspective highest quality targets hunters,

expansions second role, at our largest dedicated managers account customers. drives customer The

working in with prospects place, We assignments, put have these and management completed specialist, diligently field necessary teams customers. our and are trained and all teams the their

the We are focus from seeing results this the in initial field.

$XXX,XXX QX in software ARR increased We that of are more customers the us number that than we in total by XX. pleased through with spend

During our Day customer described Analyst Cloudera we the journey.

add customers use substantially and data $X at to of this have using than typically greater an $XXX,XXX of expansion graduated more on progressed they more unit insuring milestone AAR ARR of is have $XXX,XXX $XXX,XXX revenue the XX excess and other and AAR rate customers business first a healthy a in meaningful utilization a our a than economics. cases, their As We XXX journey. important in AAR. category have grows, increases lower now journeys, than compelling than exceed customer in million on model them successful customers. When breakpoint, customers spending

in and we the Reflecting of in transformational start our are With and that top these a search in few the I our of in public performance. executive to a announced the in and recruitment engaged flight we sector has go-to-market our improving hire status respect important gone Sector. Head off QX to to transaction a for for an of effort new to the Finally, a a Public leadership to of learning, good our pleased the sharpen new report am the growth. Sales, months. that be complete and align in expect that is high reprioritize efforts in a are have field long for initiatives that that actively in moment sustained we on role product hard, is know anticipated. team. growth of focus and leadership with believe posture field as makers. to customers but our of strategy our cloud firmly changes expected and We be of decision us term enhance a We would transaction initiated the right competitive We what the prospects, engineering machine business long and as to on company’s we areas of leadership, analytics these line refining the go-to-market VP

Hut promise these of digital customers we new These and real cases has will cloud. transformation is massive a customer – people vigor stores perfect customers let their enterprise in capabilities a are of transformation. We a large share Pizza in discipline machine undergoing and of use learning, the time streamed and from foresight, amounts and our example of mobile Hut Pizza online. investments reflect deliberately me digital Cloudera’s leveraging by benefit or these some that from changes marking doing. work and the with that data are pursuit power on apps over XXXX ordering public analytics

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a of They advantage governance volume data to shop. cloud and an that to reduce every operating chaining made You of system it public is million undergoing improve metering cloud And XX managed enabling is now learning, second leveraging from SDX or our Cloudera should be a of time noted having machine ability cloud IoT system failure the now transformation grade including smart in of a data our and performance, and All taken largest analyses global architecture AWS by elasticity Cloudera’s by of and analytics AWS utility in example needs. respond a cloud customer management, infrastructure. learning solution enterprise to a entire predicted has was our platform. real another is public customers’ analyzed powerful of of It meters, to built digital advantage And that costs. almost take technology, GDPR. models of made was systems our in using of collected, and can the and running one demand infrastructure, powered without sacrifice business large data in imagine This equipment especially by to world smart cloud. also infrastructure This machine work security, agility its nearly to now this of world’s the all day. enterprise medi-data example this importance

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is stories patterns enterprises a by the these the rapid large of modern analytics a many agility transformations adoption world and innovation. of in digital largest driven artificial of to technologies indicate, transformation As way and enterprises customer learning, require world. digital rely the scale. emergence The architecture under intelligence fulfill These at and of machine on transformation of and

the We like one will provide then highly necessary results winners long and take lucrative I now are the your Jim. the to financial Jim the questions. making term would have thinking to this are we return in investments and market. of we be

Jim Frankola

Hello, everyone.

changes. impact of Our go-to-market results reflect QX the anticipated Cloudera’s

represented Tom to we was described we’ve financial expect that and achieved lower ’XX. QX. rate million, It revenue take for This quarter, net with bookings XX% for fiscal shared, revenue $XX first execute the an revenue, up from positive that representing transition a outlook in year-over-year. growth million We XX% exhibited expansion few of that benefit bit initiatives. quarters quarter. Consistent and increase to In it operating period. cash software ago year the these from of strong flow the to XX% was our the controls was the $XXX is QX Subscription over for total in noteworthy XX% a

Based retention, was from and and For managing our Recall business. expand QX dollar received rate our measures to net expansion business analyst rate that expansion financial basis. on most in and on investor a our our day, that expansion churn XXX%. net model that the land feedback share we factors plan and and about we more matter analyzing

to customers As customers economics. Tom advance annual with of and XXX acquire highlighted, now measure in target best software journey we excess recurring along This revenue have unit toward $XXX,XXX. both reflects our a attractive customers ability

For those by we account in website. over have the of interested measure posted in on a investor our time, this progression materials quarter

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

first to in review sales fiscal with $XX compensation in cost for and This the quarter of year the a Research outstanding, quarter regarding XX% million from down was ago. a Turning than operating XX% of based share QX, for for looking compares was was company. ’XX. weighted million per negative shares information of last of was revenue due revenue historical per revenue loss was expense tables was operating expense XX% improvement as stock year $XX today’s share was margin of associated and Please additional quarter first to on from million quarter press of and forward year outstanding. operating percentage operating or million in marketing to XX an for public compared a points based increased a This XX%. average G&A to up revenue. $XX XX% in $X.XX compared more of the Loss first first Overall in the $XX period. the of of of ago representing first quarter period. the release the of a revenue. and expenses, XXX development This XX% million financial ago to statement $X.XX shares year loss XX%

ago XXXX. the Now fiscal flow cash $XX the $X million from turning we which to Total expenditures cash million acquisition much the This the progress year million $XX the operating the in year-over-year. This lifetime compares million period. QX flow higher with in cash and collections restricted is revenue the first securities differed strong conclude and high $XXX were from continued million cash, business Operating was customer operating by the XX% of first equivalents, driven million in of differed Cloudera was model positive end in will term balance sheet quarter end exited costs, cash at for marketable quarter, the offset and improvement short customer with reflects up XX% by revenue efficiencies. flow, year-over-year, I quarter. up guidance. $XXX positive dynamics with up of of $XXX million Capital cash, value. was $X the

for $XX million to year-over-year. projected on outstanding. shares $XX million Loss back With I’ll per over $XXX of representing $X.XX approximately year to Initial as based million to is to software guidance range that, approximately turn XX% we be share with average million approximately to the QX for $X.XX weighted is unchanged. in year, up revenue Tom. be XXXX it revenues fiscal fiscal of last $XXX expect follows; XX% is and between Our QX QX guidance $XXX growth total million, subscription

Tom Reilly

machine power intelligence, believe growth analytics and roles solutions digital play all transformation in areas. these interim important in learning, high this Data, and large our elemental enterprises. you, artificial Thank cloud, and transformation we for At are to Jim. Cloudera

that by Our deployments is our premises engaging scale in selling to environments. buyers and discipline Simply, in the Equally customer or hybrid their of base enforcing operates on our by the company. displayed market, stronger a Cloudera increasingly rates. are increase in drivers change accomplished of net transformation proud digital we these of platform and with make requires am I embrace costs transformation happening. important the an of I am target enterprise our at and to multi The Cloudera’s customer digital all to that designed expansion as lower impressed our cloud fine time success commercial energy grade amount efforts businesses. business to short our is as in team line acquisition

to grateful intent are this investments partners making employees, to remain the of share of stakeholders. market our right all. and investors. team community, benefit Cloudera our Thank to customers, for I of the our developer all and our to capture our The our We you course

joined by let’s are As Operator, call. Mike a Olson, Thank portion Chief Co-Founder begin the our you. Strategy reminder, we Officer Q&A. Q&A for the and of

Operator

the Instructions] Kash [Operator Bank of of ahead. Rangan line comes Please question America/Merrill Our Lynch. go of from first

Your line is open.

Jacqueline Cheong

on is Kash, them competitive this for Does against My more question. first Oracle DataScience. Jacqueline my taking for recently thanks make actually Hi, acquired that is, question Cloudera?

Mike Olson

that Oracle is we speaking, with I’ll and this good made buy Mike think DataScience.com don’t question. the team. Hi, a so. No, take

for modern addition, a for fleshing think software cloud use much data applying analytics learning but is Oracle broader and DataScience optimized range relational broad techniques larger machine much scale and for to business than out traditional is platform our with traditional this I database. look cases designed of portfolio its the

part appliance and additional Cloudera good know, delivering is help you big appliance its some may Oracle as consumption. data a may the of that As platform Oracle partner drive

Jacqueline Cheong

Mike’s this comments. just Tom, actually Yeah, to is jumping

kind what work excited is Oracle. to that both capabilities. in a is to see hybrid, all offering that. going high That underlying Oracle Their knew intend good area. very machine growth along we environments. of by broader now validated be cloud multi-public We’re It be reflects environments to learning in will We in

Jacqueline Cheong

of rates so win thank win you you it, the competitors is trending? are in Got And how and terms much. against rate how doing

Tom Reilly

legacy traditional competitors, data guys our with, as actually rates we with warehouses as with well know and capture competing very competitors on-premise rates as that or strong let win that are our so you our win me all Yeah, traditionally legacy the improving. the are MPTs

wins We are players. the traditional increasingly more seeing against

increasingly house cloud and We are the the public competing cloud more offerings. in often against

we’re our us well. – Here, general gives our our new win as with management rates in I’m confidence cloud cloud, Altus, the our specialists field them focus effectively we but that the the in improving our investments compete and machine will are investments our not learning, manager, great in sorry, as strong, general in

Jacqueline Cheong

much. so you thank Alright,

Operator

Your of comes Singh the of from question Morgan Stanley. next go ahead. Sanjit line Please

Your is line open.

Sanjit Singh

booking that for to two for my then and a Thank to those quarter? trend sort QX? wanted came with maybe Jim provide this quarter, to the -- expansion Jim, up got a of we off the on How Tom. nice you expecting, in any pretty through you the that’s and out can last I rate came net metrics guidance so to get from you rate line questions transitions see above commentary net performance bookings solid you I for kind we how were of follow have start. expansion the balance year And on – quarter? perspective, may sort think where taking that be solidly should one a the the questions, for bookings I fully your of of over laid expect the in view

Jim Frankola

seven revenue ago about within year, In bookings over about We associated take well growth six software the revenue XX%, Analyst weeks the have means XX% bookings health business. course don’t I’ll growth new when revenue what so of points We’ll to our quarter. or give with really net first. a we existing in our you are might year. news on you customers rate, there typical get joined isn’t we’ll That Yeah, look respect for XX% from get we expansion overall comment With much disclosed on conference growth. year. of at days Day, call for new or the the the the the on that projections the of to ago that XX even from year, touch the customers guiding talk

that a the rate net our XXX of historical So would imply of end to range XXX. expansion low at

XXX year transitions XXX of guidance this are expansion business, that on the and operating the the net be the given of long field, So range. is at we to to that that expect that rate going low we term with the end for expect

Sanjit Singh

Very hear really learning the out helpful, and maybe means cloud. Tom use When then me cases is the introductory on message to comments analytics, you. your as coming of for as machine I is streaming that the focused which well company AI

Is And so the of it’s know of incentives terms sort this transition the of to going as to that to the fast as get today. now go accelerate in I time pulling in from really the aggressive through adoption about to XX% transition, or am where through right you’re -- your we multi-quarter the given the trying anyway? be cloud that really possible levers in as you cloud over customers thinking business are you

Tom Reilly

three the in cloud. focus is general to machine The is high analytics, place Sanjit. answer simple areas, new and in why managers the That we put learning know and bring you growth these and yes emphasis

and years public exist large enterprises strategy to did I to desire large market take capitalize in their public three think to ago in happening on not help on very ago, customers’ target our is timing strong is capitalize Our cloud That desire that years to just two of enterprises. our We now our cloud. cloud. take advantage of see advantage

specialists our as in have we service So which managers, weapon the that’s the in general our cloud. around in public cloud place dedicated Altus, in platform been strategic our investing why understanding put a and we public basically we is place competitive put environment,

Mike Olson

Hey on Sanjit, pile to want just Mike. this I is very briefly.

I’ll premises absolutely it’s the believe on it’s that deal machine where AI our is a true in cloud it. our learning these to for is and strategy that a deal, been public large some new technique. large out they for big for We machine a allows existing multi-cloud want and big While general time. roll out, enterprises capabilities and enterprises point learning hybrid customers

where our or to places we substantial set that us out workloads the long large expansions of We term. on enterprise they in believe those move and premises into DataScience, winning win are DataScience and is will critical. them over team investing as because analyst around early cloud minds up the clients [inaudible] roll That among those hearts

Sanjit Singh

and the Mike, maybe data that story use follow-up the of to case, quick as one which think I relates strength really appreciate I for it warehousing been a has company.

the cloud as In terms cases that use internet data the well? to where parts take see do place, you warehousing moving of of

Mike Olson

to We the They the nearly about not Oh, systems. platform customers looking those a altogether past, them of see are moving the we as might are They in for run new absolutely of do. doing and with cloud. especially away hardware they some invested consider investment replatforming to on, say but thinking about have [ph]. products the they end life those Natesa think

in as for that So us. we view one particular big opportunity a

Sanjit Singh

very thank much. Great, you

Operator

go JPMorgan. Your of Murphy Mark Please next from question comes ahead. of line the

Your line is open.

Mark Murphy

for much taking Yes, thank you questions. very my

last is XXX% net forth then rate the So business to that is I’m trying and the in all compare spread? pulled in or software growth in rate under XX X% quarter new had and that Jim, subscription Is that the essentially XX% of logo you Is the XX%. the months? I back guess expansion – between just that’s

Jim Frankola

much account they the you can is how we a and expansion related Intel. and that’s net caged, you see rate revenue party and know that have. acute There one exclude They are from

be Intel else. any given there X% the might noise everyone in than or quarter growth due X% So to different dynamics being

rates. rate an one expansion net last the XXX average thing four quarters expansion net of is arithmetic second The is the

a plus simple quarter on plus dynamics you the average have four of you So from complex going average. that net versus have but rate and difference, intel some math a revenue some what there expansion yield the slight yes, a on may is new, some

Mark Murphy

I Okay, had X% marketing essentially trying them; get is how six a that all revenue you so typical sales right, I contribution from of mean might said and essentially a I that the to and you in of you new ear then to get but investments factor, bit get and points are I think of that what realize X%-ish, you growth little a the swing kind a out go you of the coming there is answer, – logos the in – prior in or year. you know what said converts in think and first new from X% accounts into

think to to quarters know, cards take the you X% spread. gets up say your giving you road of that is want kind that if know let’s that is the You back about down you X%. a Do to X% it successful, is to that back transition in many

Jim Frankola

Yeah, the into that is rate. total at if $XX case, use over that being up the landing we time. number about don’t cases the million million picked year, the the looking so an any small. nature spend the enterprise X%, going we values of of the It’s from from. on model, to single over multiple that, you Atlantic of revenue new What net logos, from associated look average with customers phases investing and on that’s Cloudera to changing $XXX,XXX focus accounts that less the where of radically platform than where comes find and will focus at of I mix given to that $XX are above customers we start and expansion expansion past pattern period do the journey, where X% that that moving we that logos customer talked I have number so see use a will we add we’re to in mean is you new to

of X% So think this that a new patterns historical or and X% change much see won’t that revenue from be we our of do year, some to come back, will I

Mark Murphy

close Okay. And account as well, customer XXXX exiting did you just Global the QX?

Jim Frankola

No.

with and we consistent own both market, what likely who most Day, we’re So so expand. up discussed is knowledge Analyst buy and Global e\we’ve XXXX, the at our of using our tightened our to target data

that models. We that have an is list It’s or XXXX internal give than we update and our take much list about of now. tighter dynamically changes customers enterprises that as targeted

a is to Day are on sticky. focus in what we’re focus So that $XXX,XXX. the the pretty to Analyst go feedback accounts some good number standpoint, that was that from over We of customers show a really going metric actually

is So has The single rate churn for customers for is over under $XXX,XXX XX%. it, recap, but our customers the alluded in to to churn digits. rate mid roughly Tom $XXX,XXX

So we’re it’s on customer in account our $XXX,XXX. milestone important customer journey and an focusing those customers our over

Mark Murphy

Yeah, okay.

get how in a you a now, quarterly this a us not once is handling you customer are or give from than number So account? point going of going going year customer Are customer terms forward? to it to we’re rather accounts accounts

Jim Frankola

our if you customers represent We at XX% will north you of Day, $XXX,XXX. That of give number of look are slides Analyst shared customers revenue. those that – the we at the

model business meat customer to transparency total accounts. you’re think we’re going that yes, journey. will to trying understand better quarterly of GXK, whatever our will $XXX,XXX the we understand accounts annually we supplemental if what That’s metrics business to to on metrics allow over share add the So customer our and provide is you the other supplemental and

seven move we customers you broke try different accounts weeks show their actually like segments to through into Just how the five to expansion ago up customer phases.

Mark Murphy

got the Mike, thing it, of the percentage update us understood. just could you Cloudera And Okay, public on cloud. on if was workloads wondering last I

summary I XX%. us you number a gave think the as last

know on-prem public versus triangulate Altus. be cloud that would I I are be that do the cloud. just because market number on trying share percentage, think what specifically am we your you? that would wondering, in included think the the you guess I I Thank pubic just to

Tom Reilly

is Hey Mark, this Tom.

what’s the in jump me there. happen to Let on numbers that, closer

of So is taking That’s release both, a ago. and using public up mix infrastructure our the period our XX% public cloud. of are over service recent That year cloud a as advantage same of as the XX% customers basically in of us Altus Platform the it break we the of use And a monitoring these service, software us out. our don’t although our and report are cloud, that we visibility. gives so software figures that

that see customers the workloads can cloud we happening. visibility our move As to public

Jim Frankola

think suite that the add release than Altus got on data only we the Amazon platforms we’ve now on of offering it it thing Mark on, better a beta I either the play as capabilities two of Database would GA well, much Azure on services that The and with of web joining rather, Altus is engineering playing release Analytic together alongside solo. those beta richer

offerings us we ought well. share think promising is of that the to there help those more combination win So as

Mark Murphy

you. Thank

Operator

from question next ahead Keirstead go Bank. Please open. comes is Deutsche Your of the of Karl line your line

Karl Keirstead

total Okay didn’t you and got hear reaffirm you I and all targets? explicitly XX couple. fiscal growth; your your metrics. a term that to great, DR reaffirm still term guidance I’ve missed you on and maybe did mentioned of just do you Maybe with mind it, to reaffirming start short plus your DR you Jim XX ’XX Jim. DR intended that total plus I are on but short DR

Jim Frankola

for effect to Yes, in they much focused wanted I idea sure that to did had make so that I revenue so on revenue. as what or of doing a out numbers, last help differed one. built the What was just them better those there everyone models, overall differed in quarter don’t and numbers, guide with we their was to could movement billings, billings the

revenue. of We guide the quarter or and I’m others the going on we that middle differed shared the are transition, don’t we last the reaffirm one so to in billings numbers way this not

Karl Keirstead

sort that the then Yep, for as okay maybe win AWS offerings win time. of move maybe great. vendors. that summarize; up against and like your wondering What are services well. was you’d to offerings functionality and the of Redshift just on house could I big mentioned a referring Cloudera Mike and your rates you can this that you were stack house rates like partly I And take advantage to of Tom, is if over improve the on have and GCP. cloud improve you the maybe EMR query presume question those gaps

Tom Reilly

this is Yeah, I really where excited. get

discussing all cloud time, center I’ll for with road and year call, pitch with public a you it’s was cloud, your bank Yes, before take offering. Last CIO every hybrid yesterday, them and to right, meet we So Silicon the want I and discuss a to data sales advantage they of we advantage our financial and year. whole required. in had want the executive take large customer tech of their show – Valley this in weren’t I that’s team a think [inaudible] it

So need to the know which today public you have in center all Yes. same multi do cloud No. a be offering? you to features in you available want use? those the you Do want that your enterprise data public Yes, you cloud cloud.

or Yes. are okay, portability? cloud private the of you Microsoft have lacking Azure. that going to the go not that. you while offer are against When nor want GCP you and have Azure to are on you to for you advantages. few these thing then choices not Amazon many future? enterprise are in give so shifting on you going going they comes a The Are offer capabilities premise I the the it securities Google, and and we the we So capabilities, same on-prem, when players might to cloud down features. run they GCP competing many on is

effectively. machine we ramping of marketing will our is general compete capabilities and number one we with awareness Our awareness, our up what manager think learning, to our teams create very disadvantage are that’s and

Karl Keirstead

Got it.

hear little open see questions this Tom to just are technology And these I earnings could software, the from call Tom forcing to either I’m out I the even IP or beginning wondering where that wondering Okay, those world sort shift whether the even that’s for finish core the an moving Cloudera’s Thank proprietary listen of are you. pivot elements a Mike. that with away when source Cloudera core more Hadoop and whether to shifts centric website to just anymore. call, almost Hadoop it about go of laid roots? Tom, a don’t helpful I Hadoop those cloud, faster accelerated from does ML if I at thanks. workloads you I and of pivot bit don’t awry anymore, motivate more talked you Mike, to When I’m different perhaps

Mike Olson

that we HCF, system, of Karl, But in and they you [inaudible] bunch. Hadoop. of thank been those it’s we taking Kudu Microsoft We’ve got just and when rich on Today of platform. no IoT No, storage, not in suite one were engines a stated percepted element storage analytic spark query had with It its that projects, storage got native native scale years processing reduce Apache on for that storage, native a technologies, model and HDFS storage a collection about way on. our our still is folk distributed of but our we’ve rich ADLS SX we’ve all are and demand the foundation processing question not workloads for Look, and project. our ago the training ashamed engine, company. XX scale the a core receiving power Amazon for so of even we a

a much pioneered, architecture. just it’s shared all out, the architectural principals and before. use that same is design than scaled the of that What interesting So distributed, more platform technology Hadoop market of shares

data, SDX all our it’s produce spark security compliance share governance, the experience, across you you can your your our can data, data You those you can now workloads. via empower same your get data, data. can But

who it’s days, still ran models, these So Hadoop you It’s platform. just more the lot interesting is is important, where not there capabilities. trained is in. more who who queries, the way these in but action platform prepped but in know interest a newer a

Karl Keirstead

all helpful. Okay, Thank great you much, that’s very insight.

Operator

Your from is next line question Michael Raymond the go ahead, Please comes line Turits of of your James. open.

Michael Turits

– was analytics to it a just specified, might would it than you data competing that last general engineering my lower that for Maybe warehousing, you was clear, cloud. on the data you more like or the or come I’d little Hi, the side bit back where to taking for make were was that win be and example? on that in produced to like questions. the but guys said you thanks fact I question, rates

Tom Reilly

more is then every track loss no know win things. evaluate type compete we We The you in and comment general. know decision you

win are rates, our an tacking rates, know that area other. on-prem so to the So you not our we cloud one win all relative than in Michael traditional

Mike Olson

or wins on When is win Amazon, on just this workload Michael Michael, well. we one win vendor Google when the Azure, and a cloud we as thing. add a want I workload to

example paying So and able the drive, our we the platform. to revenue at the of workloads vendors, we drive because substantial those for drive of Amazon, is cloud strength that consumption their we those that up are part as Microsoft them compute storage to partnerships at help wind of

a not we compete going the but basis EMR are say Amazon, on point workloads. yeah, on just the with we So MR after

move ability one, We to into security customers of across them and the governs broad who cloud who are workloads processing and requirements need regulatory analytic have the range data those and a many their going win compliance more cloud, centers want after of a to again might we from cloud, deals see the to make share. We want want in later for we our more that often whatever compete the back difference. in reason then business to fair all

Michael Turits

machine and customers number I And how for work you back Tom or may that actually said guess about are attach a platform. you maybe you that I I talk and Tom. that Mike I put you Mike, Does have to be describing you their for go had the then on? mean that that of AI not but got certain think number and could mentioned, numbers, that bench may check taking defining that those are standardizing are of actually customs the data science if platform and are rate learning

Tom Reilly

the about me talk our understand the of we standardizing when blocks building let so this. Yes, on platform,

and is data of links learning the Spark at. data You is machine defective and so compute for engine need kind Apache training. data where model

do We Cloudera well Fast not secure moving and talk a them, productive, we Cloudera Data from Workbench sets is available our our we make more doing to data data first to as and expiration we make scientist more to them to bigger giving data the governed to the almost link, a Spark, Data When make but they to development we what are environment, all about Workbench data customers we Science Labs, talking AI research those productive. Labs. machine into access had ever before, way automate they scientist Forward And learning commercialize our Forward and that then about are what capturing is have are Science by Apache just to Fast production that. which than

Mike Olson

Michael. that would additional I one add point just to

doing for years. many We machine customers have had learning

which insurance So using table fraud learning ability much companies those Machine workloads early were do on getting consumption, announced well those as platform a when We’ve platform to it advisory platform sense.io our us for produces quarters solid of the platform up the release out conclusive easier revenue and workloads. intended workloads, folks learning drives and who to machine the us made much interested way I on pointed big our and more the on-board any on for spark. that with be acquisition Fast science supportive as Forward accelerate us the of Two to Labs by is our to growing our our training to data let doing now development our money and in workbench getting detection laundering acquisition on clients back banks our want platform gives machine of environment, a that’s we that [inaudible]. learning. our enterprise back platform models

Michael Turits

Okay, thanks guys.

Tom Reilly

Michael. you, Thank

Operator

open. question next is Radke Citi. the ahead of Tyler Your from go Please comes your line of line

Tyler Radke

be thinking for how Hadoop win reason of you comes easy questions; use. and cloud this just down is kind was win Microsoft on Cloudera cost to your Pizza much sales hopefully the and hiring about kind you say Tom, messaging to referring on cloud you essentially I improve of having match it example. just the I’m comment mentioned why to my when that you to were I interrupt down. and like are in rates? leader remarks the EMR looking taking for effective, what prepared to Question to finger to Hut win to on the thanks drives or if cost rates as know have of and Hey, curious a like for put you looking How rates, of costs you of their are may effect kind your are are that to like service. you want you the

Tom Reilly

I’m tag Thanks out thank Hut. line, Pizza Tyler. is for challenged no I pizza’s very calling to hut, and that. with happy the out Alright, Pizza your use one sure Hut was you

a the – the dynamic how put cloud are where we nuances responsible are not new for our the place completion, we nature cloud builds to understand hiring But pubic who product infrastructure. who leader. field sales cloud of general out specialist, to field a drives understands a place putting who cloud. off, We business are manger of going the of in enabling cloud our roadmap, we case first and So and in who’s the new move workloads

on So compete the we things, the not price. one we cloud are in of loosing when

the and new meditative easy win our premium the very that for in price guys competitive in the data, not for win capabilities, that about have the rates competitive cloud the and our securities talk any cloud cog against cloud the cloud going capability. competitive is able traditional And SDX capabilities and management, up. to sell of the governance slight the premium quite the in have multi us. When to I SDX we guys the rates, have were and an no get lock are are of we We a do which frankly means because

like We and have the Greenplum traditional Verticus. NPTs the Azteca marts competing data data no warehouses, trouble with

Hortonworks have very, extremely plus We competing problem well. you are no the partnership. very are All we that – Hortonworks, traditional MapR, doing we our competitive, IBM called with know

to but improve rates to cloud our guys not think to the high as customers our we’ll are take our and it take rates, rates there. win cloud win see as win cloud focus quickly, traditional to Our our those in the we capabilities directly

that wanted they guys, long. as just high there decaling. So the I were our not share to been haven’t as rates we didn’t I mean traditional win are to weren’t competing – because say they that there

Mike Olson

Mike. consumer partnerships one is deliver them storage, cloud more withstanding more is not to make of and allow competitive, some into the cloud them compete. point on these of to excellent the governance, dynamic enterprise competitive regulatory point last well. need cloud cloud, the with all with and this as we When bring so workloads, that all to capabilities just vendors. I on the we got compliance, those and that data want Tyler, support point point margins, We’ve

So and need so our they to compliance we’ve relationships the drive driven got without service the that bring on excellent by with to more have consumption support at regulatory storage, cloud in computer governance, vendors the these other would leadership and its and workloads then those clouds cloud enterprise ability Big cloud. on much taking and than X consumption

Tyler Radke

Jim. thanks Great for a follow-up and

performance you I talked fiscal question think bookings returning, about reaccelerating, last QX maybe or ’XX. in of QX

curious Just still are if you that? expecting

Jim Frankola

historical the that Yes, we are seeing return getting I looking so field we in in year forward business, is are to will the as Tom now we right peak the right levels. to the and the period of of we making discussed so transaction in across expect beyond middle think back which the that half the start about disruption performance of back are

Tyler Radke

Thank you.

Operator

of comes of ahead Craig-Hallum. from Your next Please open. go line line question Bennett your the Chad is

Chad Bennett

questions. my taking for thanks Great,

kind after. the of going and at this ML on push, and up the guys angle try you whole different I’ll AI are maybe the stack push analytics So and

So workbench months seen. growing talked you’ve science gate you or at fastest product event your XX the being first the data out of the even investor that about fastest adopted think I

split and it lump I all we your if workbench and look Fast if bucket Labs customer way So ML and one up. science data AI and you at in the base Forward

north Fast buckets AI at over you rate data customers science million. the those penetration have XX or your ML customers in Forward today? in What $XXX,XXX of Labs, AAR is So a better for and over workbench, XXX then capabilities

Tom Reilly

exact that don’t front in penetration I of me, rate. have Chad, So the actual analysis what’s

investment is those use new to lagging exciting exploring underlying scientists ML bringing those new data that that’s what use is to we developing seeing for and growth going other The data we getting CBSW, expansion have so data don’t data making right into of business, is as up about customer them our start in cases basically of businesses, reveal we rate. to them we these sell we for is data the sets talking productive, to and expansion our of last the tools real-estate are line product. itself cases. or business to scientists, to and technologies, and to that in side part them out hubs customers However the and when we years, a this we are and then are drive been platform, get that getting us that the the There the go productive effect is line links more give And few what’s and emphasis when large are adopt their AI largest the allows our why to building want data making; scientists seeing exciting bringing that to in wanting now. we that it’s

Mike Olson

and rich our as base means large In data our big platform large and well. and the Chad, you science an collection are only data you a customers very would is a I analytic customer. of workloads, you add are not to when all broad the or point of are plus using Cloudera, of database by analytic customer, with get science general, capabilities a that million an different data

Chad Bennett

up Got towards you it, ML type and from go-to-market standpoint, on again touched okay, that in Tom, in makes Maybe applications. stack this and a focused AI the from workloads as we chance are sense. then And the the more that in you’ve maybe of or Thanks? sold addressing past, where you before but that. field kind are have how how addressing you of are and need in to so if relative to does we seller the

Tom Reilly

are part selling. Chad, does type change of type all seller, is we that’s the someone with transition. Yeah not chaining to individual, work the in the It’s it’s and our this of so selling need of filed the because

followed our journey. you us, Phase III are So in if of we

and sell we we IT CIO the to we selling selling and the trained II our when value are to the first higher proposition and we Phase, force our and were The our to into transition. data, transition sales made get a Phase CIO we elevate

we transformative the executives, to and training they solutions our learning line look got AI as make for and and business our we well. got we’ve to a transition experts need business much the in transition. we invested help we’ve propositions, these field we’ve we’ve we machine more deliver Now specialist, have value and identified around application bring But sell can applications, are matter solutions, of that and how infrastructure more new subject are materials, sellers training industry our as sales we force that make and solution the we sellers, helping as the them

Chad Bennett

it, thanks. Got

Operator

go open. McDowell line your Securities. is ahead comes the of line Your from next Please of JMP question Greg

Greg McDowell

wanted growth. over new K. XXX you was looks I over per just Great, year-over-year XXX much. ask a questions, customers XX% to to K flipped that very basis on thank metric actually about XX encouraged It first like the that Two metric I sequential year. customers over by

the guess Jim. is I so question And for

customers have in about to on of sort over about one our you are the a and flipping that know, know specific should think you to or we go a it of those reorient it As total I and be XX made GAK difference then to customers something XX maybe looking some that customers, QX forward range was follow-up. or the we basis what QX at metric there the models should takes versus puts

Jim Frankola

to try it to quickly. let Right, get

mentioned So XX precise XX be XX%. first both you customers. its and To

to look history, you quarters deck the last at If of give you we’ll the the slide numbers. the on four want sequential website,

Regarding XXX are was and year target fits the XXX numbers so Right a sort to quarter, last our thinking between now the an GAK. each of it’s allocate we vary. year It’s to or model. XXX going within somewhere business

model where is So built. is that the business

X% there pieces; than will I and have business you some a year part encourage $XXX,XXX. which see business two quarter about in I’d to Last you less variability the in customers each our about was I model, revenue. heard the think about think You of then

go $XXX,XXX the probably then ARR really they $XXX,XXX. models quarter, your definition I on think that starting nothing basis how if you there points over lightly, seasonally down build customers are XXX,XXX to is and over about dynamic. over can few graduate a their many special But QX, be will and category time each by from than then the less point between QX that $XXX,XXX will XXX,XXX of and specifically,

Tom Reilly

other Greg, have questions. you

Greg McDowell

certainly follow-up. could bit QX mean was that flow was the little if Yeah, flow, quick just etcetera? expand a one cash real wondering highlight. I why a cash I just on on

Jim Frankola

the always nature strong seasonal very because is Yeah, flow so QX cash of of our business.

XX% We cash and QX the So We QX. collect are bookings most to collection of our in typically cash of deal, of QX. the in model our in XX% done both QX.

So we because our pay never to couple by weeks. our us a larger of decided want late number, some of to miss customers

coupled is normal of the what good happened needed with did seasonality, the in on top pay. everyone collections, so pay to And that who QX have you So really efficiencies. then

grow, where cost the flow increases, all customers positive as unit cash We efficient quarter. the are each year. The journey in more customer Cloudera economics our to getting added

Greg McDowell

you. Thank Great.

Tom Reilly

there more the though operator, couple are over if fine questions are a hour, some even there. we we out taking are Right

Operator

the comes Our your open. Abhey of ahead, is Please Mizuho question next from Lamba line of line Securities. go

Abhey Lamba

couple work you. thank traction that seeing type do Yeah, this in for in see competition taking as you of who greater Thanks a my and off what you area? a loads you times; are offering mentioned of Altus Tom questions guys.

Tom Reilly

database competition. we’ve we multi cloud data multi that in engineering data Amazon predominantly we function providers, but are the Altus, that’s analytic the now But we compete we only and where competition. we call also engineering, ADB, greatest in across our EMR, directly expand are have data engineering introduced not platform so Altus – running seen we has and Yeah, that’s against been

and Amazon we EMR. Shift on So Red compete against

up more So our multi we’ve be to also eventually SDX The technology expect we data we up function, one that is not the opening go strategies do and and next of footprint. our but area of to and that opened multi hybrid. through print only foot into cloud in science,

up release every with and get address. And workloads competitive open increasingly we cloud the in we so more we that think we can

Mike Olson

is those that Tom of governance, governance a Olson. add workloads so us we difference. of I and provide all regulatory support make our cloud can support allows Mike where point, capabilities the if also will large where to a compliance across compliance, those regulatory it us time on share enterprise, shared offering that consistent win larger matter, and one Altus We described. Abhey help first data this quarter In for experience introduced the data think

Abhey Lamba

the Thank Got which how about Two those bit few the of you, you about it. to $XXX,XXX we for to the little the variables two it That’s you customer $XXX,XXX – last quarters. over size how very up in the and helpful. they you Can landing are guys customers ramp going performing factors mark. is from plus quickly Jim, me. mark, understand mentioned a important. are talk that

Jim Frankola

change mark really rate much. landing expansion The hasn’t very and the

rate case or what QX then an the didn’t dynamic with and expansion we’ve historically the have give change first past. has in $XX,XXX of That case So average been a year seen second take. customers from use in constant that and landed

Abhey Lamba

Thank you.

Operator

question go ahead last Davidson. Please of open. Your line of the Rishi Jaluria comes from your line D.A. is

Rishi Jaluria

more obviously it’s know see question your tell then Hi to maybe how I play me you Jim. and the the for in about to housekeeping squeezing target maybe guys, market. service a partner very outside here for Tom, taking I early, the question customers have prepared this but and mentioned you of strategy, the your little my us desire you thanks thoughts develop call. can in a channel remarks out and our

Tom Reilly

cost exciting about and one can’t where selling expansions, our force, the to our are and so can the companies market benefit our can address in have there place need companies all that the now sizes. putting though effectively all with on is, a And behalf. Rishi, are we on that more we cost sale technology. technology broader today so it a applicable we our are The of constructing this address with Yeah direct channel market things of way go-to-market to many our the from is

many market have of current we outside of So X,XXX inbound opportunities and leads so that target channel are these that enterprises. kind our

detail traditionally sure many go know make are I’m support we’ll for be calls only we you to things so field So With aspects of to process, and it’s but that passing out of our talking them, you in our of putting one to building haven’t opportunities the experienced of label you market and leads bring to our to we qualification broader place we to train channels, have Incoming know to target of real it. rest channels. resources we and have build the when in these own a that the these after provide have just the use the more and here, our ability them, leader, pass we we good early, in training candidates are on kind they to to discipline board channel know good are channel. had them

Rishi Jaluria

been touched it, Got to there fully just I I the understand. and sure in kind a just on has perspective. call. earlier that’s helpful know housekeeping want I from Jim, of make

thanks. this it and disclosed new customers know from I cloud. you GCS it’s you mentioned these So a bridge Cloudera Asher of gap. decent in and delta Cloudera customers of end, metric the That’s help the metrics at XX% [inaudible] you the between just why Can my now. know of using XX% running me have you past in

Jim Frankola

the the been in of number several We’ve quarters disclosing running cloud now. customers for

So of are the diagnostic that what cloud. number to customers running be them is precise, to information in very us, who XX% report who for it is

website progression. actually we you the which our in have If go shows XX a slide you

year, customers for in QX cloud. the running of were last So, in our example of XX%

information this So historically get go the if subject. all you should website you the on you need

Rishi Jaluria

Got it, thanks.

Tom Reilly

wrap-up. Alright Rishi questions Rishi, any we other before

Operator

further audio no have We questions.

Tom Reilly

Thanks this strategy Alright, for us win you tackle do many questions today. exciting the long market thank the our your to our with to long taking address are of prepared time all market, short, We to understand long. and wanted with stayed but to you you staying happy keep we us appreciate We run. and only in not our remarks operator. we wanted

you We and you are the what Cloudera quarter. my talking as We journey. look and exciting in customers has to team here might our forward all changes, thanks Thank making to all. to the be an listening some for the exciting been

Operator

today’s conference concludes This call.

You may now disconnect.

Cloudera (CLDR) 7 Jun 182019 Q1 Earnings call transcript