When CLDR reported quarterly results the results were quite good. However the stock price dropped 40% on the estimates. On 16 April a TMF article, https://finance.yahoo.com/news/cloudera-stock-plunges-earnin…, explained that the forecast was culled back not because Cloudera thought they were having competitive pressures (that would have been nice if AYX was the guilty party) but instead because Cloudera said they were going to have to shift their marketing thrust from getting new customers to upselling the existing customers. Author Billy Duberstein (whom I do not recall) had this to say The explanation given by management is fairly concerning for several reasons. One, Cloudera has a “land and expand” business model, where I (and apparently others) had assumed that the bulk of Cloudera’s sales force, which is the company’s largest operating expense, was deployed toward landing, new customers, and that the expand would come from increased usage without much extra effort. Apparently, the “expand” part of the equation actually requires more sales and marketing than previously thought. I am curious as to whether AYX will have a similar story. I did not experience a similiar drop out of “contagion” when the larger Cloudera reported.
Dave