Cloudera stock drops more than 10% as losses widen following Hortonworks merger

Cloudera Inc. shares fell more than 10% in after-hours trading Wednesday after the company said that losses in the fourth quarter were wider than expected, and forecast more red ink this year as Hortonworks is integrated. Cloudera, which closed its acquisition of rival Hortonworks in early January, said fourth-quarter losses totaled $85.5 million, or 45 cents a share, on sales of $144.5 million, up from $105.7 million a year ago. After adjusting for stock-based compensation and other effects, Cloudera reported a loss of 15 cents a share, worse than last year’s 10 cents a share loss. Cloudera’s fourth quarter included about a month of Hortonworks operations, as it ran through Jan. 31, which Cloudera noted would affect comparability with the year-ago quarter. Analysts on average expected an adjusted loss of 11 cents a share on sales of $121 million, according to FactSet. Cloudera’s annual forecast suggested that it will continue to have higher revenue totals but also larger losses than analysts expect. The cloud-software company predicted it would finish the current year with adjusted losses of 32 cents a share to 36 cents a share on sales of $835 million to $855 million. Analysts on average were modelling annual losses of 26 cents a share on sales of $538.4 million, according to FactSet, though it was not immediately clear if all of those analysts were including Hortonworks in their estimates. Cloudera stock closed with a 1.7% gain at $14.61, but shares dropped lower than $13 at times in immediate after-hours action following release of the results. The stock is down 27.5% in the past year, as the S&P 500 index has gained about 1%.

Source link