HDP management shake-up and guidance raise

HDP just announced some management changes. They also raised their Q2 (quarter already ended on 6/30) revenue guidance from $57M to $58-59M.

Stock down 8% after hours on 90,000 shares. Average daily volume is about 10x that.

http://investors.hortonworks.com/phoenix.zhtml?c=253804&…

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My apologies for the duplicate post Chris.

I recall my early Fool days reading an article by the Gardner Bros. re: when it’s time to sell the stock of a company. A significant leadership change was one of those times. Not knowing more details about the HDP shake-up, it will be most helpful to have more “decision support” to decide if this is a warrented time to sell HDP or not.

sjo

I recall my early Fool days reading an article by the Gardner Bros. re: when it’s time to sell the stock of a company. A significant leadership change was one of those times. Not knowing more details about the HDP shake-up, it will be most helpful to have more “decision support” to decide if this is a warrented time to sell HDP or not.

Only Rajnish Verma (was President and COO) is leaving. Not sure how integral he was to the operation. CFO or CEO leaving is usually more concerning. Seem to me that they went to lengths to spin this in a positive light. And they raised guidance after Q2 has been done so I expect that the actual revenue was between $58M and $59M.

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I thought Rajinish was being groomed to take over as CEO.

Only Rajnish Verma (was President and COO) is leaving. Not sure how integral he was to the operation. CFO or CEO leaving is usually more concerning.

Verma was just hired 6 to 7 months ago so it can be inferred he was not an integral part of the company. HDP did have personnel issues on the sales front prior to Verma joining and IIRC he was brought on to help tidy up those problems along with expand internationally. His resume featured leading another sales force from $200M to $1B in revenue.

I’m not so sure this is a huge loss to the company simply because of his short tenure.

But I’ll remember next time I want to post positive things about the companies I own such as yesterday’s post about the 10% pop for HDP. Always seems to come back to bite me.

Take care,
A.J.

Verma was just hired 6 to 7 months ago so it can be inferred he was not an integral part of the company.

He was not hired just to tidy up the sales but eventually to take over as CEO. Evidently, something has changed.

Probably, this may not be a big set back.