Cloudera


CLDR

reported second-quarter fiscal 2022 adjusted earnings of 15 cents per share, which beat the Zacks Consensus Estimate by 87.5%. The bottom line also increased 50% year over year.

Revenues of $236.1 million beat the consensus mark by 3.84% and also increased 10.1% year over year. The uptick can be attributed to rapid adoption of its cloud-based products and services.

Annualized recurring revenues (ARR) at the end of the fiscal second quarter were $832 million, up 13% year over year.

Quarter in Detail

Subscription revenues (90.4% of revenues) rose 11.4% year over year to $213.3 million, benefiting from the fast uptake of its cloud-based products and services.

Cloudera’s services (9.6% of revenues) decreased marginally by 0.2% year over year to $22.8 million.

In the reported quarter, non-GAAP gross margin expanded 330 basis points (bps) on a year-over-year basis to 84.6%. Non-GAAP subscription gross margin expanded 200 bps year over year to 91%. Non-GAAP services gross margin expanded 730 bps year over year to 25.3%.

Research and development (R&D) expenses increased 6.7% to $48.3 million year over year while sales and marketing (S&M) expenses increased 3.2% on a year-over-year basis to $77.5 million. General and administrative (G&A) expenses rose 21.5% year over year to $29.6 million. As a percentage of revenues, R&D and S&M contracted 70 bps and 220 bps while G&A expenses rose 120 bps.

For the second quarter of fiscal 2021, the company reported non-GAAP income from operations of $44.5 million compared with $42.5 million reported in the previous quarter and $29.8 million reported in the year-ago quarter.

Balance Sheet & Cash Flow

As of Jul 31, 2021, Cloudera had total cash, cash equivalents, marketable securities and restricted cash of $796.1 million compared with $902.5 million reported in the previous quarter.

Moreover, reported operating cash outflow was $12.1 million compared with cash flow of $32.4 million in the year-ago quarter.

Zacks Rank & Key Picks

Currently, Cloudera carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector include

Microsoft


MSFT

,

Cadence Design Systems


CDNS

and

Texas Instruments


TXN

, all carrying a Zacks Rank of 2 (Buy), at present. You can see

the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

.

The long-term earnings growth rate for Microsoft, Cadence Design and Texas Instruments is currently pegged at 11.09%, 11.68% and 9.33%, respectively.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report

To read this article on Zacks.com click here.