CLDR Stock Slumps to a New Low As CEO Leaves Cloudera

CLDR stock

CLDR stock is showing severe selling pressure in Thursday’s trading session as Cloudera Inc (NYSE:CLDR) revealed Q1 results that missed analyst estimates, with revenue growth mainly driven by the Hortonworks acquisition. Additionally, the company announced that CEO Tom Reilly was leaving July 31, 2019.

Q1 Results and Revised Guidance

Cloudera’s guidance and results were hurt following the delay of customers in renewing and expanding their agreements. It seems like it is an industry problem and not company specific, as Pivotal Software has also indicated having challenges in closing deals with new clients.

Cloudera generated revenue of $187.5 million in the first quarter, missing analyst estimates by $1 million. Although revenue grew by 81% from a year ago period, last year’s numbers did not include Hortonworks’ contribution. Recurring revenue was up 22% excluding pre-merger contracts with Hortonworks. The company reported a net loss of 13 cents a share, topping analyst estimates of a loss of 23 cents a share for CLDR stock.

Tom Reilly, the outgoing CEO, stated that the decline in revenue was a result of delays from customer renewal, as some customers opted to postpone renewal in anticipation of a new platform. With the postponement of renewal, Cloudera was forced to slash its full-year guidance.

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The company now expects total revenue of between $745 million and $765 million, down from the previous projection of $835 million to $855 million. They have slashed subscription revenue by $60 million, to instead be between $635 million and $645 million. Cloudera expects annualized recurring revenue to be between 0% and 10%, down from the previous projection of between 18% and 21%. Moreover, the company projects a net loss of 8 cents to 11 cents a share for the fiscal second quarter.

CLDR stock is one of the biggest losers on the NYSE and now down 41% at $5.17.  The stock made a new all-time low of $5.11 earlier in the session.

Search For Next CEO Begins

Following the announcement that Reilly will be leaving on July 31, Martin Cole will take over temporarily as the company’s board searches for the next permanent CEO. Reilly has been the CEO of Cloudera since 2013, and prior to that, he had served as CEO of ArcSight and Trigo.

In a statement, Cole said that Reilly had been a committed CEO in evaluating the progress of the company, but they have agreed that it is time now for a leadership transition.

CLDR stock is already down 75% from its 52-week high of $20.18.

What do you think about CLDR stock after today’s earnings?

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