Hortonworks (HDP) reported on the December quarter of 2017 today, and the headline is Positive cash flow for the quarter!!! Here are the rest of my notes:
Revenue: $75M, up 44% YoY. This was a $4.54M beat.
Subscription revenue: $58M, up 63% YoY
Adj. EPS: -$0.24 (in-line)
Total Deferred Revenue: 275.2M! This is up 48% YoY
Def Rev this quarter: $44M! (Wow!)
Positive Cash Flow From Operations: $6.4M
They had TWENTY $1M+ projects in the quarter. The most they’d ever had in any quarter before this one was TWELVE.
Dollar-based net expansion rate: 122% (over the trailing four-quarter period) – this ticked up this quarter
Avg Deal Size: $207k (this was the largest average deal size for any quarter in 2017)
Hortonworks may not be completely finished burning cash, but a cash positive quarter shows they may be getting close. They still have a LOT of dilutive SBC…that’s just the model. But the shares are priced accordingly, and I think long term, they’re attractive.
On the positive side, the 63% growth in subscription revenue, the huge increase in $1M+ deals, and the cash flow positive quarter add up to a company that is heading in the right direction FAST.
I’ll be adding on any pull back, market-driven or otherwise.