Cloudera Inc(NYSE:CLDR) reported a decent second quarter of fiscal 2018, with overall revenues rising 39% yoy to $89.8 million. Their Subscription revenue surged 46% yoy to $74.0 million, which now accounts 82% of the overall revenue, against 79% in pcp.
The group is strengthening its position in machine learning, analytics and the cloud to leverage their expertise in these areas. Accordingly, they acquired Fast Forward Labs, which is a machine learning and applied artificial intelligence research and development company. Cloudera is also identified by Microsoft for machine learning and analytics on Azure; named 2017 U.S. Enterprise Partner Group Data Platform ISV Partner of the Year.
For the third quarter fiscal 2018, they guided their overall revenue to be in the range of $90 to $92 million, which is 34% to 37% yoy rise while Subscription revenue is forecasted to be in the range of $74 million to $76 million, which is a 40% to 44% yoy rise. Non-GAAP net loss per share is expected to be in the range of $0.25 to $0.23 per share. For total year of 2018, overall revenue is forecasted to in the range of $355 million to $360 million that is 36% to 38% yoy rise. Subscription revenue is expected to be in the range of $290 million to $295 million, which is 45% to 47% yoy rise.
Analysts from Stifel Nicolaus reiterated their “Buy” rating on the stock. Even Mark Murphy, JPMorgan analyst, reiterated his Overweight rating on the stock with a better price target of $24. Mark sees that the group would benefit from better big-data related secular trends, wherein their customers are generating >$1M of ARR. The group’s growing at over 50% y/y in the international markets. Moreover, the analysts sess solid Billings growth while Fast Forward Labs acquisition is a long-term strategic play that would boost the group’s machine learning and AI capabilities. Mark reported that Cloudera is on track to close 120 net new G8K logos in FY18, as it has already closed 60 during the seasonally weaker first half of the fiscal year
On the other hand, the shares of Cloudera fell this morning by 1.3% (as of 11:21AM EDT; Source: Google finance) after a positive start. Investors must be booking profits in the stock which generated over 22.2% in the last four weeks.