Entering text into the input field will update the search result below

Cloudera: Land-And-Expand Story Affirmed At Investor Day

Apr. 14, 2018 9:34 AM ETCloudera, Inc. (CLDR)18 Comments
Gary Alexander profile picture
Gary Alexander


  • Cloudera shares have recovered somewhat from their post-earnings crash on the back of optimistic commentary at the company's investor day.
  • While Wall Street will take some time to adjust to Cloudera's new org structure, particularly possible sales disruption, the company is overall on solid footing.
  • Key takeaways from Cloudera's presentation focus on its hugely successful land-and-expand model. Customer ARR continues to grow, with the typical G2K customer generating just under $0.5 million annually.
  • The sales transition will also include a new VP to head sales to public sector clients, a huge new vertical opportunity for Cloudera.
  • With the company's guidance hinging on conservative assumptions, shares remain cheap at just 3.5x forward revenues despite the recent relief rally.

It's probably not an understatement to say that the coming quarter will probably be the most critical time in Cloudera's (NYSE:CLDR) journey as a public company. Moving past the worst earnings quarter in the company's life to date (and particularly painful for loyal investors like me, who've lost nearly 50% of the value of the stock in the past two weeks), Cloudera stands to face a giant test: can this company continue to grow at its previously rapid clip, or will growing pains turn it into one of those stale, old software companies that no one likes to talk about? (think MicroStrategy (MSTR) or Pegasystems (PEGA), two "legacy" vendors way past their prime that have mostly fallen off investors' radar).

The past week has brought a lot of updates from the company, all coming from Cloudera's inaugural Investor & Financial Analyst Day on April 12. Investors have generally liked what the company had to say, with Cloudera shares recovering somewhat to $14 (up from a low in the mid-$12s, but still far off recent highs of $22):

ChartCLDR Price data by YCharts

I've been following Cloudera closely over the past week - in part because I have my own stake tied up in the company, and in part because it's extremely fascinating how a growth stock like this can trade at such a cheap valuation (in my personal opinion - many other investors think Cloudera's execution risks are true justification for the lowball valuation). At Cloudera's current market cap of $1.96 billion and enterprise value of $1.50 billion (netting out the company's considerable net cash of $460.7 million), it's trading at just 3.4x EV/FY19 revenues - the cheapest multiple of any software company that's growing at least double digits. Even Hortonworks (HDP), Cloudera's rival in Hadoop that's been public

ChartCRM Gross Profit Margin (Quarterly) data by YCharts

This article was written by

Gary Alexander profile picture
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.