Cloudera Delivers Beat And Raise, But Growth Remains Lower Than Industry Rates

Cloudera Inc CLDR delivered an all-round beat in the third quarter and raised guidance for the fourth quarter and full year. The company’s business seems stable, but there is limited visibility into growth accelerating toward industry growth rates, according to Raymond James.

The Analyst

Raymond James Michael Turits maintained a Market Perform rating on Cloudera.

The Thesis

Cloudera reported revenue of $198 million, ahead of the consensus estimate by $9 million, and management attributed the beat to an improvement in sales execution and higher renewal rates, Turits said in the report.

He added that the number of customers with more than $100,00 in annual recurring revenue (ARR) rose to 977, from 953 in the prior quarter. Moreover, customers with higher than $1 million ARR increased from "over 150," from "over 140" in the previous quarter.

Cloudera released the converged and rebuilt Cloudera Data Platform for both public cloud and on-premises data center and its business appears to be stabilizing, the analyst mentioned.

Although the Cloudera Data Platform was not yet driving any paid business, customer and industry feedback suggest that the company would be able to compete more effectively with cloud service provider and third-party cloud data platforms, Turits said.

Price Action

Shares of Cloudera were up 10.34% to $11.04 at time of publication Friday.