CLDR Stock Price Increases 7.17%: Why It Happened

By Amit Chowdhry ● December 7, 2020
  • On Friday, December 4, the stock price of enterprise data cloud company Cloudera Inc (NYSE: CLDR) increased by 7.17%. This is why it happened.

On Friday, December 4, the stock price of enterprise data cloud company Cloudera Inc (NYSE: CLDR) increased by 7.17%. There were a few triggers that caused the stock price to increase.

Positive Stock Price Trigger – Q3 2021 Results

Prior to the stock price jump, The company had reported its Q3 2021 results. These are some of the highlights: 

– Total revenue for the third quarter was $217.9 million, up 10% compared to Q3 2020

– Subscription revenue was $197.4 million, up 18% compared to Q3 2020

– Annualized Recurring Revenue grew 12% year-over-year

– GAAP loss from operations for the third quarter of fiscal 2021 was $12.3 million compared to $82.5 million for Q3 2020

– Non-GAAP income from operations for Q3 2021 was $49.3 million compared to a non-GAAP loss from operations of $8.2 million for the third quarter of fiscal 2020

– Operating cash flow for Q3 2021 was $18.4 million compared to -$5.9 million for Q3 2020

– GAAP net loss per share for Q3 2021 was $0.04 per share compared to $0.29 per share for Q3 2020

– Non-GAAP net income per share for Q3 2021 was $0.15 per share, compared to a non-GAAP net loss per share of $0.03 per share for the third quarter of fiscal 2020

– As of October 31, 2020, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $567.5 million.

– Annualized Recurring Revenue at the conclusion of Q3 2021 was $756 million, representing 12% year-over-year growth

– GAAP subscription gross margin for the quarter was 87%, up from 82% in Q3 2020

– Non-GAAP subscription gross margin for the quarter was 91%, up from 86% in Q3 2020

– Outlook for Q4 2021 (ending January 31, 2021): total revenue in the range of $219 million to $222 million; Subscription revenue in the range of $199 million to $202 million; Non-GAAP operating income in the range of $35 million to $40 million; Non-GAAP net income per share in the range of $0.10 to $0.12 per share

– Outlook for fiscal 2021, ending January 31, 2021: Total revenue in the range of $862 million to $865 million; Subscription revenue in the range of $775 million to $778 million; Non-GAAP operating income in the range of $131 million to $136 million; Non-GAAP net income per share in the range of $0.40 to $0.42 per share

– Share Repurchase Authorization: Cloudera’s board of directors has authorized the repurchase of up to an additional $500 million in shares of our common stock

“In the third quarter, CDP Private Cloud became generally available, we announced three new upcoming cloud-native services on CDP Public Cloud, and the number of CDP Public Cloud paying customers increased by more than 40%. With CDP Private Cloud now in-market, our hybrid multi-cloud offerings can be implemented by customers and our Enterprise Data Cloud vision is nearly complete. We are beginning to see an acceleration of migrations by existing customers from legacy Cloudera and Hortonworks platforms to CDP,” said Cloudera CEO Rob Bearden. “We believe that Cloudera has never been better positioned to capture more of the rapidly growing data management and analytics market opportunity for hybrid multi-cloud solutions. As a result, we have announced today that the board has authorized the repurchase of an additional $500 million in shares of our stock.”

Positive Stock Price Trigger – Price Target Increases From Analysts

Cloudera recently received price target increases from Citi and Barclays. Citi and Barclays both increased their price targets from $12 to $14. 

Citi analyst Tyler Radke kept a Neutral rating on the shares following the Q3 results. And Barclays analyst Raimo Lenschow kept an Equal Weight rating on the shares.

Disclosure: I have a small Cloudera position in my stock portfolio.