Is Cloudera Getting Enough Out of Its Q2 Results and Guidance?

When Cloudera Inc. (NYSE: CLDR) reported its fiscal second-quarter financial results after the markets closed on Wednesday, the tech firm said that it had $0.10 in earnings per share (EPS) and $214.3 million in revenue. Consensus estimates had called for $0.07 in EPS and $205.5 million in revenue. The same period of last year reportedly had a net loss of $0.02 per share and $198.29 million in revenue.

Management noted that the company achieved another major milestone last month with the general availability of Cloudera Data Platform Private Cloud (CDP), significantly advancing its Enterprise Data Cloud strategy,

Specifically, with CDP, the firm is participating in the fastest-growing segment of the market through cloud-native services. At least this is what management is saying. Uniquely, the firm also benefits from demand for hybrid and multi-cloud solutions that allow enterprises to optimize the performance, cost and security of workloads and use cases.

During the latest quarter, subscription revenue was $191.52 million and services revenue totaled $22.81 million, representing an increase of 16.7% and a decrease of 30.0% year over year, respectively.

At the same time, annualized recurring revenue grew 12% year over year to $739 million.

On the books, Cloudera cash, cash equivalents and marketable securities totaled $431.5 million at the end of the quarter, up from $361.0 million at the end of the previous fiscal year.

Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $0.08 to $0.10 and total revenue of $207 million to $210 million. Consensus estimates call for $0.09 in EPS and $214.35 million in revenue for the coming quarter.

Cloudera stock traded down 8% to $11.84 on Thursday, in a 52-week range of $4.76 to $14.20. The consensus price target is $12.21.