CLDR - Earnings call transcript Q1 2021

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Operator

Good afternoon, my name is Oren and I will be your conference operator today and welcome to the Cloudera First Quarter Fiscal 2021 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. [Operator Instructions] Please note, this conference is being recorded and your host is Mr. Kevin Cook, VP, Corporate Development and Investor Relations. Mr. your begin may you conference. Kevin,

Kevin Cook

Good Thank first welcome Cloudera's and fiscal you, XXXX operator. quarter financial to call. afternoon results conference

We announced results after discussing press be issued today. market in release close will our the

Chief Cloudera also Officer; Bearden, accessibility investor website, Officer; release, to Arun conference Cloudera's Executive provide today's have materials our as President information Marketing From combination relations posted and Chief quarterly which remarks Murthy, We Chief supplemental and with prepared Frankola, well Rob on Hollison, Financial Officer. additional with and Chief in Mick me are press today's Jim as call. greater Officer; Product

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

you and exclude present are non-GAAP These non-cash we operating we Non-GAAP to GAAP measures extraordinary to non-GAAP any. All acquired call, assets, measures to to be real stock-based are considered intangible substitute for, this financial measures. superior Cloudera's or both performance. and a financial to results non-GAAP when impairment and if intended estate amortization analyzing expense, of charges, income. from, encourage our references consider compensation measures will income not in During GAAP isolation operating all

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

or our a We result the to us as the relate them impact which will today forward-looking new beyond COVID-XX in statements that the the future please future economic as call that our macroeconomic we our our limited these and changing conditions. this today could related environment this the make on including In impacts in social COVID-XX time partners. modify those be reasonable we is but based including assumptions these to that believe guidance changes update the the frames and distancing and are operating. and COVID-XX as as rapidly, for June to customers we of requirements Those events. on control of statements of forward-looking our to guidance. addition, other will are conference and related assumptions provide no matters date, and on of to assumptions Many severity is know are XXXX and date The to of global be business today. mitigation based Significant any of note assumptions on X, we on based to not cause that we of facts obligation information to undertake

CEO. Bearden, Rob Now,

Rob Bearden

depart operating in from Thank quarter the of you, Because areas, we interest. Thank that will fiscal XXXX results. to few extra to a of be we're extraordinary most Good everyone. Q&A key time for our for discuss format first leaving focus you to usual sure Kevin. this all call topics afternoon environment, the we us cover on joining an thoroughly

quick COVID-XX a Data our responses on provide and will highlight Cloudera performance, implications, discuss quarterly and update Platform We progress.

CDP hybrid set. As is and you our know, solution new multi-cloud

in representing income So beginning QX, Total And difficult these more that business are at being very first fiscal about we ARR number our enterprise than not resilience than the immune resilient reaching solutions. well of but an ARR half who results, growth. this by in higher exceeded with caused turning of of pandemic to the now Each XXX. the some was million, revenue the recurring of subscription at software is who economic typically and model exceeded the million nature executed of case was particularly proven quarter expectations. $XXX was Annualized during from to in $XXX was expected, to QX, XX% obviously, in expected, out was revenue quarter, companies. to than results of million, stronger level effect business was for than it customers most as is X,XXX. crisis our than $XXX,XXX $X Early COVID-XX, million. as organic non-GAAP is our the the also year-over-year $XXX downturn our of relates performance we extremely circumstances. indications in number the total It was customers full obviously and was The midst financial quarter. conclusion as more generate the operating greater XXX of $XX pandemic, million the And revenue excellent growing the are

our importantly, gives use affected, including visibility model fiscal the and heavily on 'XX of contractual of revenue be software transition they net on based solutions to software as substantial and since to recurring are degree more critical year's highly into our integrated, of critical focus supporting historical diverse, commitments to applications multitude in benefit less and for and average revenue These a our their primarily depend mission our retention, delivery us but is we common First, a customers this model applications. revenue support mission It's often creating customers on from CDP. likely high a solutions subscription for existing the stickiness. cases Furthermore, to are applications customers.

We with are long-standing to new have winning not of And support customers these existing with plans. many them relationships business from since it's new to we our achieve substantial and remotely. on reliant engage financial customers, easier

for To has as not be forecasted, is that personnel For be the be necessary subsides. our essential extent and customers is pandemic it business customers, expectations services revenue for until the adjusted we've the to on-site personnel on-site it slowed, most part, organization field or to effective. that for to with services with our

that do revenue global to by the These not usually large meet customer our from coronavirus. concentration It's predominantly exposure to to customers we and credit addition, material In profiles stems important obligations. most tend enterprises. have note nor have the strong industry affected their verticals

let's terms specifically observing in we're customer So discuss with what that of backdrop, behavior.

the generally renewed in data digital engage strategies analytics long-term in QX the in rate for transformations. customers have Our modernizing second planning quarters. multi-year their These at highest customers and last five architectures, and

they that not So changes these anecdotally, we've workloads. projects heard expect production current from to plans do remain intact and customers and

typically the data working stress, We and on during an architecture have analysis, solutions. Nonetheless, heightening design value environments importance the current placed investment. which of limit also that freeze is of times from understand of and customers data hybrid new and data, economic criticality projects remote data security, customers cloud increased

now taken no clear, is at this be This personnel we and of projects. to across These have are and new We ensure we be while plans. we've built use and as existing actions less expenses out levels a of areas, different action believe prudence. assume we we including aggressive control to us took contain we reason actions economy. to these applications a have judgment our But and business will Among to operating our And steps, that prolonged margin of outside will will believe many the funded accelerated workloads position result, that likely multiple downturn for meet weak inertia reduction severe costs commitments. into contractors. be

customer indications significant We have in not pipeline seen slowing or of interactions a development.

who product new when the small of of This build continues of and using momentum last CDP, metrics offerings. these ancillary off are of base tripled CDP notwithstanding dozen is reported, number offerings, customers actively customers ahead we to the We've purchased are more the to now Cloud but for have Turning number customers CDP a Public than our pandemic. our or a plans. internal

Cloud and on in with For joint intend on a advantage that CDP can customers our the track of to leveraging is to since CDP CDP making and CDP make it our example, complete available and integrate announced for Public the infrastructure Also, private enabling for end joint hoped we CDP QX. the easy availability now value who expanded to for on CDP enabled doubled means of cloud Google time select Azure this We're year, be we use on GCP May, as GCP. friction-free what our our we customers fiscal it cloud. which will the Cloud to Microsoft excited is our who GCP plan pipeline customers for has to workloads. data last Azure Cloud are procurement. on-premise Marketplace, for was types and enables of our expect enhanced warehousing CDP CDP, Cloud Public at has CDP CDP and with and March, for architecture the Google of for CDP integrated cases. had with accomplishing and billing using Marketplace, development of discover that for form cloud available proposition tech we Azure partnership services Microsoft preview we the customers take We with and CDP time partnership Private offer Azure Azure for customers. and about in run a data accelerates learning on have public Other Marketplace two to multi-cloud Platform. engineering, hybrid exactly respect certain Cloud on Likewise, and provision to reported, Cloud fully first implemented. credits factors Cloud expanded data of on it And Google our Platform. the In is public significant product very By vision we that to enterprise machine Cloudera customers simple end cloud easily Private with

cycle learning ongoing new I'll CDP CDP's share AI-driven CDP and round and a build machine the MLOps life introduced out to businesses. customers to to use discrete investment service. our features These cases And our repeatable, part cloud-native governed enable innovations and deployments to wins. update, learning month, reflect Finally, we're customer transparent scale Machine Learning model machine management with extended as cloud few we highly SDX competitive, capabilities models last making offerings. the of the

They investment their long-term objective management visibility their customer. This chose and to worse. global a sources, a had life the data into streaming, Their efficiency for all CDP as was disparate is the operational challenge firm and lack solutions, learning was systems example multiple it cloud of growing against in to integrated multiple siloed Furthermore, sources operations. enables a because challenge. cloud, and data cloud-based. be first was services Our situation a point cycle set CDP's new be will data of unified entity's analytics of they machine making data across data which a their clients' run warehouse solving immediate support

the they integration Our moving service now of of hybrid manufacturer's and to connected meet pre-processing Public was could analytics. a well are data automobile that has initiative option leading on-premise through ambitious specializing CDP life Cloud, manufacturer and offerings the high-performance advantage in way vehicles. taking This to demanding spanning collection POC, specific cloud next very is CDP's certain other determined their superior car a cycle use After from development cases use successful from to cases and ingest timelines. architecture. European under requirements, They only data example CDP

They central security that IT exhaustive central cloud. certification is and data companies, and participant, to concerns. life as HIPPA to maintains is PIAA its highlight to multi-cloud for for process security the as on multinational hybrid combat final move which industry they services security and hybrid across shadow And ability model and Like meet and data across the to chose cycle customers technology a Their data IT organization. lines want After as a CDP demonstrate they by data and certification of importance Azure IT requirements. selected begin AWS, its expanding a Our stories more based they CDP CDP of evaluation, is and must for example well strengths operate governance business on individual a place selected analytics to likelihood their company. be competitive. as architecture. healthcare cycle for objective In data via capabilities, an customers strict also regulated workloads agility management. many around increase CDP cloud, to move warehousing, life the CDP These the on-prem. being organization's cloud also the a our They increasing helps their

Now, and we'll get questions. take then let's some through Jim Jim? the have numbers, us to

Jim Frankola

website. trends Hello, an a release revenue recurring million, $XXX revenue was increase Annualized or definitions everyone. for strong and fiscal very respects. Note, an $XXX in supplemental on regarding expectations was be today's up the materials year-over-year. increase year-over-year. in was relations information Rob. Cloudera's press and Total XX% year-over-year. QX QX revenue XX% million, million, investor can found $XXX quarter exceeded XX% of of was Thanks Subscription all

we with greater dramatically, again who $XXX,XXX in QX. We increased to This Renewals X,XXX concluded driven expected introduction Private technology. customers in to strong at from expanding growth of these confidence CDP ARR. adds grown million ARR in ARR with at XXX customers The for primarily were existing the our Cloud, delivery to strength As ARR increased a $X based than Public million on Cloud higher The by renewals together investments a key customer Rob set. and was customers rate of new in customer was representing record CDP Cloudera started solution quarter. in $X QX a heightened more XXX. have of indicated, of or than is

As to in results the remainder income reconciled and earlier stated, unless all operating the release references I non-GAAP that today. to GAAP a otherwise press review of note basis. Historical the on expenses results statement, issued are results are non-GAAP

XX% estate compared $XXX of margin quarter, for amortization M&A-related to in of improvements 'XX operating gross year million real QX in expense last the of and and were constant quarter, year were from of evident substantial operating across and of P&L strong first from a to all $X.XX compared the more year last to $XX but lines synergies, points flow for collections of operating gross XX% from Our were for intangible compared charges. of year better continuing was year. XX% the initial year expenses the margin of than first first our Total $X.XX and non-cash merger total 'XX as XX%, Overall first of XX to million. percentage good by the Diluted total quarter Operating stock-based any subscription was fiscal were the activity, Total XX% QX only fiscal of year. QX improvement a the substantially quarter These the driven per million of representing and trend Expense share XX% QX in share than last in XX% exclude flow X%, for fiscal post-merger initiatives. non-GAAP measures margin extraordinary cost cash first compared QX of benefited Cash assets compensation, was quarter, XXXX. through of improvement fiscal $XX period. loss driven of was income in expense in an up revenue in impairment process per renewal better-than-expected of 'XX QX reduction ago earnings management. expenses structure. revenue improvement a in not operating year,

was up conclude I RPO the grew year-over-year. forward-looking end million, the to $XXX comprise contract subject RPO in Total in provided expenditures will to providing balance cash, liabilities the $X securities revenue QX and first with year-over-year. Current which exited cash contract XX% information. of XX% conclusion fiscal QX. up We from for fiscal $XXX million at were the beginning year, of the the at guidance restricted the sheet. million liabilities, of at the for by call deferred other QX initial $XXX turning were marketable Now, cash, quarter. disclaimers equivalents, and million million which guidance and the $XXX is Capital quarter. updated regarding

with QX up associated pandemic growth global The $XXX services last slowing approximately growth range revenue professional We is to between million and be million, approximately to projected X% $XXX expect recession. million, in of year, to million revenue total and rates in subscription XX% compared driven due by in primarily year-over-year. of QX $XXX revenue to representing a $XXX the difference the

down This Specifically, slightly we to expect QX QX be the and revenue means revenue for services will decline to year. QX levels until at in economic an from from services and recovery. year last remain fiscal levels see XX% we XX% QX our in

adjust to actions cost structure appropriately. our taken have We

bottom-line operating As income primary non-GAAP our as a reminder, adopted have metric. we

expect quarter million range roughly in per of We XX% operating $X.XX. or $XX to $X.XX the QX be for be share is $XX to Earnings million the to revenue. second for projected income to of

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

revenue are the and Our coronavirus the economic QX QX. of on moderating in peaking and based impact QX projections in

As would second the of the year. in such, rates software begin growth slow to revenue half

Specifically, the X recession by in expect to impact and revenue rates QX. percentage we X pandemic-driven growth to subscription points QX our

projected to be for XX% to We million $XX Earnings expect of to million per or be $X.XX revenue. operating range for roughly to in fiscal of $XX the fiscal income $X.XX. 'XX XXXX share is

minimized the number this and significant contractors As we G&A sales the we a indicated, the steps certain in quarter, recently we use on last operating company to generate efficiencies Rob operational have to R&D, discussed And in periods. and Building taken income ratios outside anticipate position roles and consultants. fiscal year. substantial marketing, of we of have future and improvements expense eliminated

global back-office for services, all outside Area these of shared of Excellence, we or hiring in functions. We've accelerated functions the Bay business part have created actions, and streamlined processes. Centers As have

We consolidating cost are Bay Francisco the high real estate in also San Area.

improvement of next year. result course several the the operating Rule growth of initiatives Again, years. the cash the the flow and expansion expect these we margins We be XX a steady non-GAAP for expect over guided sustained margin by and to in remain

fiscal Specifically, this expansion we are of us further a XX% on position track by at for margin will QX in year, margin which to least operating 'XX.

our revenue that balances operational As flow cash we structure generation. believe from sustained outlook, strong our growth very with current apparent

Finally, an share repurchase our update program. on

of after worth shortly our $XX As XX-K, March, the in Form disclosed authorization. $XXX in million repurchased we stock million announcing

currently to Rob. I'll With are in back that, turn We active share it repurchasing. not

Rob Bearden

Jim. QX solid Thanks, our highly the pleased challenging for We easily process with as midst productive, our to remote We're initiatives working in time and well on supporting and very new customers a as innovation. performance progress and delivering of remained growth everyone. engaging with our a have product transitioned remotely

Cloudera a For for enabling also their from data a life managing My and in the vendor cycle to the cases. community continued we're multi-cloud partners, true our thank management on-premise architecture for use data modern mostly employees a their want customers, platform to hybrid, support. enterprise data customers, I enterprise to for company. data our transforming thanks and our dedication multi-cloud entire of

Let's Q&A. the pause also here Chief and take for are Chief Marketing call. Arun line and the Hollison, Operator, our Product and of please some questions. portion begin available our And on as the a Mick Q&A Murthy, reminder, Officer; Officer

Operator

Yes Morgan question our Stanley. sir. Instructions] Mr. comes [Operator And a Singh from first with

Sanjit Singh

the have in congrats some been of the sort activity? that of first seen then we wondering to would could half through And transitioned of walk question. I you quarter trends Thank were if parts my June, early the first Where second a since was quarter demand as have then? the bookings the of Rob, QX. quick on you have you might of questions and taking seeing strong some for of the how the That trends quarter. as then into half terms be And I in follow-up. a get degradation us you

Rob Bearden

the force, first sure first couple And for joining the of and trying was pandemic this would obviously really and full for understood were when the It an of going what Okay, the quarter evolutionary of Singh, thanks phase we moving were be. us the weeks impacts great. the call. I really awe into started to shock to a make of bit what meant, all quarter.

pause, They and deep Our were, we dependent, the impact how great customers understand and to very, be they they were realized was their performing out how use phase on customers the the began in really shape, took engage in customers their went and that that make the through very were businesses use they and sure had resides but that Phase at how and transitioning we only model together. disruption reaching platform, better platform. very opportunity that very how to them, model, platform. really to making big our they how we more to they then in through needed as we point get out see trying pipeline see. very on insights all very I'd we deliberate, to much a sure exactly out wouldn't understood, critical to model to they aggressive for into of them environment over to understood we that cases, were functional terms data engage more we were ability data to their their a was in work-from-home cases, what customers, their in that first point the that a what support weeks. in was many of II, couple about wanted played trend was could very products, service, to And It

gave excellent and how give CDP to insights, team them us road we to help the on, more the workshop customers better to So, visibility platform. public into understand our process ability with did work with and CDP map workshops And move to of and them them use, through private. or what how starting leverage value more our was get the a work it out did it, an more also job of those either to plan where to workloads

back and Mick in planning the going Scott private demand many of strong did solid solid their migrate and phase around the And expansion excellent phase really to we're renewal getting the both very data seeing in and cases to an security saw and which certainly they're incredibly new for pipeline in important an us demand from data much in process, what very and as really security an that we're turned has adoption the the quarter. and CDP, much software and out models well expansion to and data work are to around issue to great able like importance we say they're net core planning I'd insights be the data, into job have it look become a customer of lot great do with engagement. and because levels So as a, Phase how of III, now, customers early the a value of learning expansion. created a

light architecture And it let's higher, in the what importance them strong seeing done learned data to right on of that phase data that the is that's data. a and a we're has beginning life from CDP, entire in they've the cycle remote this even an is enable importance architecture, basis the surprisingly, reception we're an all what just seeing of takeaway securing enterprise also, now. and receiving hybrid services architecture around of So the really great this of on hybrid the a shined

to seeing a really really base really settle plus have socket we're And executing working And our we're get job so the Scott coverage of to really, those into this quota with they're we operating to. environment, I that. going track in has the year stayed be with be think engagements customers. been a from our nice on to kind customers done need to Pipeline a and productively to accustomed going customer one has standpoint. to have productive it where is general. And

Sanjit Singh

I metrics It's wanted of get early encouraging great. CDP. about your, the a dynamics which a your But released, one you With on to view a going in Cloud. some can sort great ask that contributor? I to the wanting of pipeline or is to be may hand, of be to on business. as There's Cloud sort uptake. then some framework lot Public on the Private about about That's CDP view quicker going and think accelerate, what sophisticated to there's environments get customer well. was revenue to adoption cloud handle the on-premise CDP pretty spur that base cloud a have of Because may

do between and forward? two Cloud, CDP about how Public between think So going traction we Private Cloud those

Rob Bearden

Sure.

ability So, from you fiscal quarter. as seeing. about for on Private to enable the the with very, data of base. reception the life the that it data gotten out, lineage single common architecture of CDP to they're have from hybrid a our governance GA of what end the with we're pleased to our factor manage data glass. cloud us and and and entire very to it give super And track and point Private fiscal cycle The the be pane completes It deploy And QX end customers form manage customer both Public late customers and for will on out. all security we schedule the of enterprise come for summer at Cloud excited it. We're are has great beta

customers. we're our so customers move fast, think has data of as improved environment to we it and as engineering. ease in Hat in the terms data able hybrid AI and as deploying to engineering with as warehousing, the has adopting leverage sure from OpenShift really in platforms, make through Red how we're for Private. good very, terms closely public services CDP native and we've as and all because, in the streaming those successful cloud be really And and to really a both led the providers our ability CDP very this a going worked and how And driven be were relationship IBM cooperation we're it's constructed their that measured both go-to-market that we And with customers core to how leveraging container of Private and to migration, migrate of have very of as we're and partnerships to our and been along Public the for of successful supporting partnerships that design use, be platform there but the around architecture, principles and experiences well very, for the will we've services hybrid our

part much you'll we contribution the I little that we're We us factored bigger customers the hybrid and think workloads toward is percentage year adoption is private public of the through extend very move the and seeing think and to well. generally. way fiscal to is this as for and move that last is your from a our what majority market the see revenue trend I around that want to think of and deploy that's question in asking the CDP -- what then and play to first

Sanjit Singh

you. Appreciate thoughts, the Thank Rob.

Operator

question from Mr. our Wells Phil And next Fargo. Winslow with comes

Rob Bearden

Phil. Hey,

Phil Winslow

Happy flow data back. on of the what on focus you and telling get one to favorite I you. product in Rob, and customers good update and are Thanks. side chat flow. On data to just my products I too, just -- noticed to streaming that with on you're Really yours general. want an wanted

Rob Bearden

that to from and being has It's AI predictive in being gas And out efficiencies out not, origination. in and all have. lines real data Yes, be and learning go and the able the the the real-time. to We're happening. those of to oil able and one events to edge, and -- that against their they in differentiators able in platforms sure. get being data It's of drive data the interest fastest seeing that real-time CDP go as strengths bring drilling believe analytics bring of to product under significant able able space, management we significant be growing are real-time one We're it to machine to to way high ROI are on sets really able stream significant seeing, particularly to the drive models. velocity the or point

from edge of oil growth to NiFi next And line one there continue streaming leverage significant real-time in have five CDF are use back. product go that have most over the real-time the industry, could endpoints a XXX,XXX months months, significant that data every service of across But probably cases four streaming We service. the I to out the within others. deployed that is of providers going on the outperforming we that see

really introducing customer use those we're the to we're that and in leaning new So making base. sure cases

Operator

our and question from Mr. Walravens JMP. Pat from next comes Okay a

Pat Walravens

and working I very questions I through for you. you Great, Rob, much two on thank QX. have congratulations guess

of it of my just that? it the the to caught attention your then part? to learning want solution driving that to sort is changes out question, and And sort really then maybe and think I'll landscape it the you said, so, if it and when on a customers like is out new for wondering of if you the what's these Cloudera upfront CDP, competitive put public. what could would it just second private lay First, is before feels how be competitive I'm for both first like days And sort the environment you? helpful for I after move us

Rob Bearden

Yes, those I'm kind together. sure. Well, of going both blend to

much, to risk applications in embedded to focus their cases. many use data driving market solutions mission fraud to are it'd be tend critical in enterprises. critical that They very up, in drive to They our to also And mission biggest our recognize customers the tend data and models. industries highly they be workloads, XXXX, is regulated whether their driven both the management, sets platform be target they data So Fortune core with large models, detection. driven very be to frame

in to SDX public private to through to workloads to we most and services what use cases management the and they that tooling able then that to that's them they do the able so the use the the different and to over base environments, take put workloads to cloud, today analysis public whether net most hybrid so back most the place cases architecturally new of be service. data tier that and that's the the expand is the is for them the And then run to and at move our incremental a tier. want to environment appropriate is that's customer tier. And on effective to on-prem existing natural tier whether what's Most deploy be whether to the do types have motion public private in appropriate ability edge, workload of to tier, and on-prem, workloads and manage financially and give will again

streaming, that deliver so, deliver through machine those we're to platform to be and the And data security data data from can rest services, will consistent the then and way the store and truly any ability ability from that the the data AI in a the until edge, comes through the or data through that manage that a and data cycle data and governance hybrid give data whether of and engineering, life only environment. learning a models the to of warehousing really operational can manage the traditional whether secure warehousing, entire architecture be an entire all competitive ability standpoint, a life through give the apply cycle them through at framework and

how entire of don't single-use solution about manages we data case that to terms solution And so, in partner of about data. And compete the of with with think it private, focusing tiers case Amazon point of we a but Microsoft Services. We're life think public, we point not Azure, basis. as platform OpenShift; the Hat And the and trying GCP, at about competitors, in Web on company the cycle of obviously, versus think on partners the in each the them case competitor. Red we

Pat Walravens

Okay. That was helpful. you. actually very Thank

Operator

next a Chad Mr. question from our And comes Bennett.

Chad Bennett

taking my for Thanks questions. Great.

I And the self seeing, maybe change of of, churn with either a provide in the were guys' I for renewals stated still think here, a the bit terms a in now pricing execution ago still new both and/or safe unique healthy one pricing a from boost environment you strong improved are you, guess, again of can layer assume and that just supporters we in you and the little Are side. but then, the kudos somewhat seeing great everybody in your you tailwind now? implies of obviously, hopefully, year? even more quarter. possibly change of on licensing So, probably for another from maybe quarter. Jim, again, we just, change I But, months and to in respect is Jim, that we're maybe

Rob Bearden

you Jim, take want to that? Yes, do

Jim Frankola

Yes, one. I'll start with that

pleased Rob or of past the as renewal the very the see in a so. there we The we're best you half that performance with quarter, over continuation said, a yes, second what year QX. themes are So, and saw in

fully we've some So are The late minimizes early off. continue merger to renewals, changes from an in in terms and we standpoint, operating renewals. are excellence and to paywall past renewals, business licensing cadence and operational of made that cases, that drives the and pay

detail, churn the back So, to decreases going have each discuss moved are they customers in and quarter. rates, averages. number of that not say but to to self what I'll historical rates is, Churn support we're

churn. to So stabilized we're terms there is customers want CDP of step point, good we've and will churn focus rates the getting pleased and place have this to our land cloud, rates. public when that at next renewal the a improving into out and the And that further move they be in having

Chad Bennett

Got it. me. And from then, maybe one follow-up

I'm But guys But about in QX actually QX. first at to guess reconcile happened I guide this pretty talking trying least to well, in the everybody just environment give to appreciates quarter-to-date headwinds guide, all, you're business. I of the how seeing what and service a is the in are you on heroic. Just fully think what

in Your betting has pipeline, challenged, is frankly, heading been Understandably, been but weren't quite new was I And has deal the billings no were change better into than activity. on RPO in like the There year. good. no Renewals quarter. net anyways good. it expected there that have change. been seems you

know I So, growth impact better, in and to the of Jim, that's you data? half. be Any I'm second color understand know, about it? thinking COVID-related Or don't that there you factual a is that would kind actual just we're cited just in and trying Thank subscription you're you X% a X%, what to guess, to how Is you. don't very unique great. from environment

Jim Frankola

Yeah. There's a lot to unpack there.

than the saying our start have a me is want numbers customer with With we the and And we to an prudent. we said, enables and are be the let that profile environment to us you more resilient we that in other So, be of that more good tech companies. fortune having in do software confident perhaps way and piece. in that think see software uncertain

guide the than our essentially ago hit. year on the we XX right It's So, software were days really pandemic where before is for consensus. better

back progress estimating causes in is will in be or those an the to bookings And having and which we X% pandemic, right to we it headwinds for our to despite based part through think and do have the of what similar of reports pre-pandemic. in to to get at lower that's generation the a that -- roughly read new that is that extent QX impact obviously Where and gives and that's business, quarter all in growth And there services of as of primarily due the -- year modeling QX. I'll essentially very on of business. the that on And are in that confidence half softness see causes we're revenue it year. -- be customers the software harder is pipeline, to all to impact And And And revenue that reflection software then our QX. the the we the the software same entirely So, was you business think is first almost be the external we number us the quarters, X% environment. less. QX. you of this our now, revenue the in the what call the QX looking be in our that pipeline through

they add the or postponing largest or third-party and and of maturity able partners. of with point no The from are us to or shrinking cases on most are many our are expand that new expansion news use good opportunities. is, front customers the help successful at little services customers Some

headwinds the despite point the services recap, pandemic. line. hit, have we then, the the And of the in to looking resilient is the but a So structure getting very cost the software the last on there. appropriately business this reacted bottom And is is, proof of is business

the of So, software our is most profits. business what generates

strength the based our that were on that fact guidance software the to increase for margin see actually year of can the You able we business.

Chad Bennett

the for you Thank Great. color.

Operator

comes question next from Jack Andrews with our Mr. And Needham.

Jack Andrews

to with have $X the hurdle terms you. see customers over more little afternoon. and along incrementally the results. for million color a them color congratulations that of on threshold in impressive what common Good or cases Is that XX if in use taking Thanks vertical my anything you that you any crossed group question, could of spending the there concentration, provide on provide lines? drove wanted I on terms those

Rob Bearden

you take do that? to Jim, want

Jim Frankola

customers are they we've slightly quarter, XX the Yeah, say say that in weighted the the I'd good seeing talked domestic sector confidence verticals I'll but that it's in in in the their that chunk platforms services, are in in I'll that not telecom. of unremarkable. relatively investments not It's somewhat We level. biggest public right terms respects, are in customers continued What those majority, the is, tech some of continued their about in profile financial take quarter followed million the CDP $X their had of that. by strength with a our than what at it's and now, of the this existing -- platforms. validation because new line Cloud product $X internationally -- a investments matches are of set majority more growth They that -- the, plus. legacy CDP that's million driving Public the good terms

Jack Andrews

in perhaps, this over as that just importance expecting how speak question, impact how Rob, if think wondering And if important Ops you follow-up particular, and of business then, new the on sort a of your offering, ML penetration your could, to we you is? what time? you're could was I should And about

Rob Bearden

with data Ops talk ML driver models a earlier datasets I to the learning do By to let little run really allows those into driving is It's the cases back the the massive an touch data a as and ML is what analytic does, and what that datasets, helps it's because customers it even value events, on that can processing decision does Ops and it Arun action ML us do that's over on require or real-time what have. but Sure. Arun, use things happens those changes, the some flow. incredible really Ops doing about an to and this specifically big to you that, more the a machine process streaming SDX? maybe this of bring will significant back they efficiency, value those it on drivers, question models of to want into and goes don't one get our dataset real-time event We to driver. real-time come for real-time take stream very it. do and

Arun Murthy

Yeah, absolutely. Thanks Rob. Hey, Jack.

represents And sure this the so of and past, broadening like make the audit can sure charter that that, platform. that As that we secure in very One learning make of make does, CDP, model, model to take Rob go run the to and sort can a or the we the a governed sort a the the fundamental fashion, there develop is but the things make of develop really this of lineage sure value CDP of actual it the from we goal we a smart of the to is talked in sure And for is saying, to or April into public huge added right? and in we've to track monitoring. get SDX fashion insight entire is our, ML the year, capabilities one journey made production actually a sort Ops math the of which enterprise. the we the was platform and was is a, analyst SDX to a capabilities, statistician thing here hey model, machine say, a to look, it's

your example, then, pop for the imagined start new today are this models of be to not see there's where might drift to example newer have your is we And pandemic. and it seeing we a insights be. of data, with efficient you because if as So, you to sorts all We're model as great up.

qualitative can the edge loop, make platform run and the your and complete sense, data, sort enterprise. to a Ops you actually this math the something Does from the Jack? make So of your quantitative scenario to take that is way this the statistics all in for allows to where and of really it's sure new sure you effect production-grade that you learning make all get machine ML

Jack Andrews

It you does, that. yes. the in thank Got detail around color it. And for

Rob Bearden

to models. the learning part what's, set do CDP massive that hybrid and a of a again, drivers, And value being is for across data multi-tiered differentiator machine key able the service

Operator

And JP from with question Mark Murphy a our Morgan. next comes Mr.

Matt Coss

We've more not this know on for this baseline happening expectation expectation? can on Jim, It's your that the your you spending expand model. see cause Matt faster of of going the than behalf seen great. point, or forward sort built either good operating slower Hi, margin in to Murphy. This margin it operating at great. afternoon. expansion meaningful? as could Coss What, is Mark is already And of CDP move model that revenue you a second one, does mentioned comment customers you start uplift When get there's And into to Thanks. I meaningful any to year. CDP?

Jim Frankola

Okay.

the we've post of and is, In profile, margin merger terms this the of year. actions what through May last year through done

non-headcount mean basically slightly the of structure I will remainder year savings, have cost the relatively will that we consolidate growth. over shrink our as get facilities, but what the by additional cost it's support some stable. And We structure created that profitable is revenue

to be growth of we lower or revenue have see bookings increase increase bookings rate growth is costs, that that to will at much support So If place faster excess able than you in to be our what to revenue assumptions. will we'll in would infrastructure growth. cause margins expand because than occurs, here a and the but costs what

of that's extent offering, say it's, clearly the to product to what the is, CDP and I'll it pandemic, a is an because Regarding easier it's new economy. in new spending be going revenue, IT and to a a in budgets to CDP access function sell be easier spending that and get of will levels the the customer, general to spending are bigger environment that

QX from from economic standpoint, will primarily Private contribution. perspective. year CDP product start in fiscal into Cloud of being will terms heading fiscal revenue Public CDP 'XX So be year And a I a think meaningful in 'XX, really Cloud

Operator

your question And next from Rishi line of the from much Davidson. question. that very you comes Thank for

Hannah Rudoff

could Could and cloud mean for the guys. my public you? little vendors Thanks Rudoff for This more provide And expanded vendors? bring the maybe you additional Hi, front with do on left taking Rishi to questions. color partnership public on Hannah it adoption much the is what what today. with for a on how in the partnerships cloud

Rob Bearden

joining Sure. for Thanks call. the

starting low focused are the CDP them, So lower those cloud of security really all their ongoing partnerships. What very and on the a being and linked, systems. from services we're work intrinsic within at on side, we SDX continues we're specific optimized sure, models engineering of from making optimization. it some that lot been security level competitive tone environment. done optimized in that engineering calls use the has has There's of to file level an fashion. the their this a is sure changed done with are an runs making And an public correctly works environment optimal standpoint, And that in for that

it as Coopetition heavier being classify coopetition. So, much, would on I cooperation than a much competition. focused

We have grows XXX,XXX from are customers. data center course, There of management. And that servers paying quarter. X data exabytes under of every

want move huge on-ramp our for we to they prepared the and an make seeing of standpoint. We that. the pipeline our Public and through talked have tripled to usage hybrid customers of about are run earlier make -- -- an has And quarterly tooling. last sure leverage about IAS more of And that the than benefit and sure our CDP we they report. to CDP I to terms the make process our ability sure in architecture, quarter, has some cost-effectively remarks beneficiary. efficiently want are obvious in the now customers to that's to And they from want that both the the in since we doubled. of As Cloud

probably next that For frictionless CDP is now, move spend. -- And then, Xx make accelerating But that's process. every I in it leading to our transformation effort in they our of pay -- to we're CDP very a with our migration doing easier digital can for put to track to faster as Those for way, a cloud, through customers also the that CDP. Xx of make on we're inside phase customers And public We're the board even prepared it provision to our procure And dollars on of in is Azure dollar easy the mix remarks ambitious to purchased and that were goal, also. goals IAS and make talked they've What in sure for services were in every make place. the their CDP about us to self-service trying going down the and credits there's customers to customers exactly into company. going says burn that CDP. part sort what we principles It's marketplace and to now and directly marketplace. services. committed and now that can Azure the we're leverage the design

architecture have to. then All so economics things and to better hybrid ability get faster, are of accumulate efficiency, that the the these deliver into anxious drive more clearly and to they

accelerated to these adoption continue things. an So as progress, culmination all it's of a see they of further And adoption. we'll and

from revenue I'm out And we our question, be. we're of exactly pointed proud year in where they've And Jim generally. more executed last fiscal we'll CDP for well tracking the meaningful to there. see next team As really how wanted

Operator

comes of a line Barclays. the next And our Pree from question Gadey from

Preetam Gadey

Private Private color basically, expect out it Cloud? bit be because are do the expansion was more it roll do technology upgrade when the spending on to your Is kind offering you I a CDP CDP people little hoping increases going or they about maintaining to more get you more of that Cloud. the to rate,

Rob Bearden

doing. think, what to to platform economic life platform either. design is, again economics, want technology principles. the It's to what Happy about hybrid assume of on entire the it model, do the talk going ability back you from it answer terms the economics in a I foundational of cycle be manage is to I to talk is, an versus the the of and be the the with manage more much about goes easier, designed Short But data to architecture enablement CDP to faster and data. it's

to customer, yes, CDP, solidify now it, it terms set and move clearly you're public, cases, of think services that now, to then they'll a lines I only seeing is have this tier more of more in use to driving bring more it but rate with under because use course of those because our opportunities on some more it CDP and does data in but churn in of renewing security will naturally as of easy drives they'll and the so, again, capabilities, of intent they're what data warehousing happen renewal, that's Private the more the helps bring and cases data the lot not that management, course, management customer fabric and private, improvement essentially renewals, entire then which renewals machine very expansion under will not then, for that drive is the will engineering, expansion native that will dollars, migration because help? that life Private will data platform of they cycle. services management, workloads certain the lead provide, have. expansion data that CDP services will But Does with, and path Cloud learning only and plan and also to the also And be to those, the public through well. business to models begin that And appropriate public from also cloud run it to that and that leveraging governance the make in SDX naturally

Preetam Gadey

hopefully Public revenue expansion I fiscal subscription is way and for Perfect, a question, really but small more Cloud kind right guide thank where to guess the know high I next follow-up kind it, with CDP quick of too market right of things leading fiscal you. bit bigger much should toward going on 'XX more a now, and CDP equal, the mid footprint I go mean, but to year. to and relatively all And little teens Private just not you're a much early run Cloud now. it's

Rob Bearden

that? Jim, you want get to

Jim Frankola

yes. Yes,

complete So a be grow able that transformation, significant product and our CDP what growing do with the pre-pandemic transition should believe say roughly the a we was is market market we once and XX% it's to I'll we to year.

XX% terms revenue operating give for many profit So the company, The company run in the business lagging we ready XX% thing growth of the ourselves We're guidance a pandemic year in a our to longer is not of starts a to fiscal indicator. reasons. is in think as of balance. 'XX middle We're second even once grow,

will for and some start to we'll in take bookings So then it in show up revenue. time growth seeing it

be to should think So, industry. number next certainly once ready growth once the we through We transition, able not the over, product call revenue grow with for do pandemic to we're the is year.

Operator

we have at And no time. further this questions

Rob Bearden

All quarter. Thank we all right. stay look being joining the Take next forward call safe, you to very for healthy. back and good. care. Stay with Well, you

Operator

And this gentlemen, conference today's participating. you conclude does ladies call. and Thank for

You may now disconnect.

Cloudera (CLDR) 4 Jun 202021 Q1 Earnings call transcript