Cloud stocks have been somewhat of a disaster for investors over the past little while. The latest company to fall apart was Cloudera , which saw it’s shares plummet 32 percent in late trading Wednesday after the company reported continued losses despite growth from its cloud software sales alongside the resignation of their CEO, Tom Reilly.
Overall, the company posted revenue of $187.5 million for the quarter while annualized recurring revenue came in at $672 million, an impressive 21 percent growth figure.
However, the company also expects to see a full-year non-GAAP loss of around 30 cents per share. While investors are getting somewhat fed up with companies that still struggle to be profitable after going public for a couple of years, Cloudera’s losses were actually not as bad as what analysts had first expected.
But what really hurt the company’s stock price was the second announcement made today in which their CEO, Tom Reilly, will be stepping down. The move was described by Cloudera as being “mutual” and that it was a right time for a change in leadership. However, most investors have taken this announcement as a bad sign.
“We thank Tom for his contributions over the last six years, including leading Cloudera through its substantial fundraising, strategic relationships and acquisitions, as well as its IPO and merger with Hortonworks,” said interim CEO Martin Cole. “Tom and the Board have always been committed to continually evaluating Cloudera’s progress and ensuring that we are executing to drive long-term value. Accordingly, we have mutually agreed with Tom that this is the right time for a leadership transition.”
The relatively weak performance from Cloudera comes as another similar company, Pivotal Software (NYSE: PVTL), also saw significant losses the day before, plunging around 41 percent since the decline first started late Tuesday.
With this barrage of disappointing results, investors are beginning to question whether the cloud sector really has that much potential or whether they should take their money with them and leave for greener pastures.
Shares of the company fell by 3.4 percent across normal trading hours before the news announcements were made public, where they fell by another 32 percent. Overall, the stock ended Wednesday at $6, the lowest price in the company’s history.
Throughout the past couple of years since Cloudera went public, shares have been fairly volatile, but steadily trending downwards from around $20 per share to their current price range. It seems unlikely that the company will stage a turnaround as the industry overall has been struggling quite a bit.
Cloudera Company Profile
Cloudera Inc is a United States-based software company. It has developed platforms for data management, machine learning and advanced analytics.
The company’s platform enables organizations to use vast amounts of data from a variety of sources, including the Internet of Things (IoT), to better serve and market to their customers, design connected products and services and reduce risk through greater insight from data.
The company’s platform addresses three new transformative markets, Dynamic Data Management Systems, Cognitive/AI Systems and Content Analytics Software and Advanced and Predictive Analytics Software. – Warrior Trading News