Cloudera is the last disaster in terms of cloud stock

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Cloud Data Analysis Company" Cloudera (NYSE: CLDR) Thrown a series of bad news on investors Wednesday night. The company's first-quarter results were mixed compared to expectations as revenue growth was primarily driven by the acquisition of Hortonworks. This acquisition does not seem to live up to expectations so far. The company slashed its forecast for the year and announced that its CEO, Tom Reilly, would leave the company. "Data-reactid =" 11 "> Data analytics company in the cloud Cloudera (NYSE: CLDR) Thrown a series of bad news on investors Wednesday night. The company's first-quarter results were mixed compared to expectations as revenue growth was primarily driven by the acquisition of Hortonworks. This acquisition does not seem to live up to expectations so far. The company has reduced its forecast for the entire year and announced that its CEO, Tom Reilly, was leaving the company.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Cloudera's results and advice have been affected by some customers "decision to delay the renewal and extension of their agreements, which does not look like a problem specific to a company – a cloud company offering a platform of services Pivot software, which reported Tuesday, is have difficulty signing contracts with new clients. "data-reactid =" 12 "> Cloudera's results and forecasts have been affected by the decision of some customers to delay the renewal and extension of their agreements, which does not sound like a specific problem for the company. Enterprise – the cloud platform as such a service company Pivot software, which reported Tuesday, is struggling to make deals with new customers.

Pivotal shares plummeted by 41% on Wednesday as a result of the reduction in their forecasts and Cloudera shares fell about 30% after trading hours.

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Source of the image: Getty Images.

A mixed neighborhood

Cloudera recorded a business turnover of $ 187.5 million in the first quarter, about $ 1 million less than the average estimate of analysts. Revenues grew 81% from one year to the next, but previous year 's figures include no contributions from Hortonworks. Annualized recurring revenue, which includes pre-merger contracts with Hortonworks but excludes certain other items, increased by only 22% year-over-year.

Non-GAAP earnings per share were a loss of $ 0.13, up from a loss of $ 0.18 for the same period last year and an increase of $ 0.10 per share. compared to analysts' expectations. On a GAAP basis, the company lost $ 0.38 per share, less a loss of $ 0.36 per share over the same period of the previous year.

The shortfall was attributed to customer delays. "While some first quarter customers have chosen to postpone the renewal and extension of their agreements in anticipation of the release of the new platform, thereby affecting our outlook for the whole of the year. exercise, these comments and enthusiasm validate the demand for enterprise data cloud solutions in our target market, "said Reilly, who will remain as CEO until July 31.

Low orientation and mix of management

These customer postponements prompted Cloudera to drastically reduce its forecasts for the whole year. Total revenues are now expected to be between $ 745 and $ 765 million, down from $ 835 million to $ 855 million. Subscription revenues are expected to be in the range of $ 635- $ 645 million, a reduction of $ 60 million from previous forecasts.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This original indication was in itself a disappointment, well beyond below analyst expectations. Cloudera stock plunged in March according to the company's fourth quarter report, in which these indications were published. "Data-reactid =" 32 "> These initial indications were themselves a disappointment, well below analysts' expectations.Cloudera's action plunged in March as a result of the company's fourth quarter report, where this directive has been published.

Annualized recurring revenue growth, which is the closest to Cloudera 's proposed organic revenue growth, is now expected to be between 0% and 10% for the year – to – date period. set of the year. The company had previously called for an ARR growth of between 18% and 21%.

These client delays are unlikely to be a short-term problem, given the magnitude of Cloudera's planned cuts. This is not just a case of a few transactions that have slipped into the second quarter. Cloudera's customers could be more and more cautious because of the uncertainty associated with escalating trade tensions and fears of a recession.

The Cloudera Board of Directors will be looking for a permanent CEO to replace Reilly. Martin Cole, Chair of the Board of Directors, will assume the position of Interim Executive Director until this replacement is found. The timing of this operation is almost certainly related to the issues affecting the company's outlook for the coming year. The new CEO will have to find a way to boost Cloudera's growth.

Investors in Cloudera should prepare for a tough Thursday with a big break and turbulence in the C-suite category.

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