Wall Street was thrilled when it learned, in October, that cloud computing company Cloudera (NYSE: CLDR) was planning to team up with its rival Hortonworks in a $5.2 billion merger . Investors are even more thrilled, though, with what Cloudera just managed to accomplish all on its own.
This morning, Cloudera reported third-quarter 2018 financial results featuring a $0.03-per-share "adjusted" loss where Wall Street had expected an $0.11 pro forma loss. Q3 sales came in at $118.2 million, also ahead of estimates. Shares of Cloudera stock are up 10% as of 12:30 p.m. EST in response.
Wall Street likes what it sees in the clouds today. Image source: Getty Images.
Cloudera's revenue rose 25% year over year in Q3; subscription revenue (considered more valuable than revenue in general, because it's more dependable, and recurring) was up 28%. Cloudera did not earn a profit, but its $26.4 million operating loss was less than half the amount of money it lost in last year's Q3. Calculated according to generally accepted accounting principles (GAAP), Cloudera suffered a $0.17-per-share net loss -- also less than half what it lost one year ago.
Cloudera also updated its guidance to incorporate the latest numbers. For fiscal 2018, ending on Jan. 31, 2019, Cloudera expects to record total revenues of $450 million to $453 million, up 23% year over year. Subscription revenue is expected to grow nearly as fast as we saw in Q3 -- by 27%.
Management did not give GAAP earnings guidance, but did note that its pro forma loss for the full fiscal year should range from $0.38 to $0.40 per share. Given that Wall Street had been projecting a $0.50-per-share pro forma loss, investors are taking even this likely loss as good news.
10 stocks we like better than Cloudera, Inc.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Cloudera, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .