Cloudera

Good 2Q results, stock up 15%. After hitting $5, the stock is nicely rallying on Ichan’s purchase and now on good results.

  • Revenue $196.7 beat consensus of $182.3. Subscription is $164
  • Significant beat on operating margin; OP Margin of -3.8% exceeded consensus estimates of -15.3%
  • Added a net 24 new customers who exceeded $100,000 of ARR with number of customers with over $1 million in ARR remaining stable.
  • Raised yearly guidance
  • Other point that came out in the announcement is deepening relationship with IBM (IBM could be possible future M&A)
  • Compared to the recurring revenue the stock is trading at 3x; Meaning if the market thinks there is a turnaround and there is excitement about their product launch, the multiples can easily grow higher.
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