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Tom Reilly, President and CEO of Cloudera Inc., speaks at the company's initial public offering (IPO) on the New York Stock Exchange (NYSE) in New York.
Michael Nagle | Bloomberg | Getty Images
Cloudera shares plunged 43% Thursday after the announcement of the departure of Tom Reilly's CEO and the lowering of his revenue forecast for 2020.
Five months after its merger with rival rivals Hortonworks, Cloudera continues to waste money and strives to generate steady growth, raising concerns about the future viability of its analytical technology. Datas. The company, valued at $ 4.1 billion during a round of financing led in 2014 by Intel, represents only $ 1.4 billion, even with the addition of Hortonworks.
Analysts at D.A. Davidson called it a "disastrous quarter" and Wedbush cited the "trifecta dreaded of bad news" – weak results, poor guidance and departure of the CEO.
"Last night was the last straw for many investors and believers in the history of Cloudera," wrote Daniel Ives, an analyst at Wedbush. He maintained his "neutral" rating and reduced his price target from $ 16 to $ 7. The shares fell to $ 4.96 on Thursday, after closing the day before at $ 8.80.
This is the second consecutive day that an emerging technology infrastructure company has lost almost half of its value. Pivotal Software, which sells subscriptions to software designed to help companies deploy applications across multiple clouds, dropped 41 percent on Wednesday after lowering its forecast for the year.
For Cloudera, the fundamental challenge has been the same for years, namely trying to make money by selling an advanced version of open source open source software called Hadoop, a platform for storing and processing large amounts of complex data. and disparate. The merger with Hortonworks in January was aimed at bringing together commercial and marketing resources and reducing the costs companies were spending to compete.
But the company remains a fight. Another competitor, MapR, said last month that its laid-off employees could be shut down if it did not find funding.
Asked on MapR Wednesday, Reilly told analysts: "We see their customers as an opportunity for us and this is part of our growing pipeline." He added that the Hortonworks merger had resulted in a period of uncertainty and that Cloudera had been faced with increased competition from cloud providers.
Its pipeline is not materializing fast enough for investors. Cloudera said he expects revenues of between $ 745 million and $ 765 million for the full year 2020, down from previous forecasts ranging from $ 835 million to $ 855 million. . The net loss will be 28 to 32 cents per share, the company said.
Reilly is temporarily replaced by board member Martin Cole, a former executive of Accenture, while Cloudera is looking for a permanent CEO.
"Tom and the board have always been committed to continually evaluating Cloudera's progress and ensuring that we have long-term value, so we agreed with Tom that the time was right to a transition from leadership, "said Cole in a statement.
Mike Olson, Cloudera's strategy director, co-founder and former CEO, is also leaving the company.
– Jordan Novet of CNBC contributed to this report
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