Cloudera shares fell more than 28 percent after the company released a forecast below analyst expectations. But for the fourth quarter of fiscal year 2018 of Cloudera, which ended on January 31, the company exceeded estimates.
Cloudera expects a loss of 59 to 62 cents per share for the full 2019 fiscal year, from $ 435 million to $ 445 million in revenue. That's below the FactSet consensus estimate for a loss of 59 cents per share excluding certain items and $ 460.5 million in revenue, StreetAccount said.
In the 2018 financial year of Cloudera, the losses were also declining despite considerable sales growth. Excluding certain items, however, Cloudera reduced its loss from operations to $ 96.6 million in fiscal year 2018 compared to $ 140.3 million in the prior fiscal year.
Cloudera began trading on the New York Stock Exchange last year. The company's competitors include Hortonworks and cloud infrastructure providers such as Amazon, Google and Microsoft.
Most of Cloudera's revenue comes from subscriptions. In the fourth quarter of the fourth quarter of fiscal year 2018, Cloudera increased its subscription revenue by 50 percent.
Cloudera CEO Tom Reilly, however, said in the fourth quarter that the company could pursue too many new customers outside its target market and backlog, especially in the areas of existing customer expansion. The company also found that it needed more money to acquire new customers and increase spending on existing customers.
Cloudera will make changes to its field organization, with specialists focusing on cloud computing, machine learning and analytics, Reilly said. The company is also looking for a new sales manager who can bring the company up to a billion dollars in sales.
The corporate changes will bring "some inconsistent results", especially in the first half of fiscal year 2019. said Cloudera's CFO Jim Frankola. The company should benefit from the changes in the second half of the fiscal year, Reilly said.
The company is optimistic in the long run, "but we want to be cautious and reflect on the potential disruptions associated with the local changes." Frankola said.