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8-K - FORM 8-K - Hortonworks, Inc.d346775d8k.htm

Exhibit 99.1

 

LOGO

Hortonworks Reports Record 2016 Revenue of $184.5 Million

and Fourth Quarter Revenue of $52.0 Million

SANTA CLARA, Calif.—February 9, 2017—Hortonworks, Inc.® (NASDAQ: HDP), a leading innovator of open and connected data platforms, today announced financial results for the fourth quarter and full year 2016.

“Our fourth quarter performance was highlighted by double-digit growth in support subscription revenue, clearly showing continued strong market demand for our open source platforms,” said Rob Bearden, chief executive officer and chairman of the board of directors of Hortonworks. “The combination of enterprise customers’ accelerating business transformations fueled by data and our continued financial discipline positions Hortonworks extremely well for growth and success in 2017.”

Fourth Quarter and Full Year 2016 Financial Highlights

Revenue

 

    Total GAAP revenue was $52.0 million for the fourth quarter of 2016, an increase of 39 percent compared to the fourth quarter of 2015.

 

    Total GAAP revenue was $184.5 million for the full year of 2016, an increase of 51 percent compared to the prior year.

Operating Billings

 

    Operating billings, the aggregate value of all invoices sent to our customers in a given period, were $81.4 million for the fourth quarter of 2016, an increase of 56 percent over operating billings of $52.1 million for the fourth quarter of 2015.

 

    Operating billings were $269.9 million for the full year of 2016, an increase of 63 percent over operating billings of $165.9 million for the prior year.

Gross Profit

 

    Total GAAP gross profit was $34.0 million for the fourth quarter of 2016, compared to gross profit of $21.7 million for the same period last year. Non-GAAP gross profit was $35.6 million for the fourth quarter of 2016, compared to $22.8 million for the same period last year. GAAP gross margin was 65 percent for the fourth quarter of 2016, compared to 58 percent for the same period last year. Non-GAAP gross margin was 68 percent for the fourth quarter of 2016, compared to 61 percent for the same period last year.

 

    Total GAAP gross profit was $112.3 million for the full year of 2016, compared to gross profit of $66.8 million for the prior year. Non-GAAP gross profit was $118.0 million for the full year of 2016, compared to $69.5 million for the prior year. GAAP gross margin was 61 percent for the full year of 2016, compared to 55 percent for the prior year. Non-GAAP gross margin was 64 percent for the full year of 2016, compared to 57 percent for the prior year.


LOGO

 

Operating Loss

 

    GAAP operating loss was $57.2 million for the fourth quarter of 2016, compared to $50.6 million for the same period last year. Non-GAAP operating loss was $30.7 million for the fourth quarter of 2016, compared to $32.9 million for the same period last year.

 

    GAAP operating loss was $251.2 million for the full year of 2016, compared to $179.6 million for the prior year. Non-GAAP operating loss was $147.1 million for the full year of 2016, compared to $133.6 million for the prior year.

Net Loss

 

    GAAP net loss was $57.1 million for the fourth quarter of 2016, or $0.94 per basic and diluted share, compared to a GAAP net loss of $50.2 million, or $1.11 per basic and diluted share, for the same period last year. Non-GAAP net loss was $30.6 million for the fourth quarter of 2016, or $0.50 per basic and diluted share, compared to a non-GAAP net loss of $32.7 million, or $0.72 per basic and diluted share, for the same period last year.

 

    GAAP net loss for the full year of 2016 was $251.7 million, or $4.40 per basic and diluted share, compared to a GAAP net loss of $179.1 million, or $4.13 per basic and diluted share, for the prior year. Non-GAAP net loss for the full year of 2016 was $147.6 million, or $2.58 per basic and diluted share, compared to a non-GAAP net loss of $133.3 million, or $3.08 per basic and diluted share, for the prior year.

Adjusted EBITDA

We historically calculated Adjusted EBITDA as revenue plus change in deferred revenue minus non-GAAP expenses plus depreciation. We provided guidance for each element of Adjusted EBITDA through the fourth quarter of fiscal 2016, which we targeted for Adjusted EBITDA breakeven.

 

    For the fourth quarter of 2016, GAAP revenue was $52.0 million, change in deferred revenue was $28.6 million, non-GAAP expenses were $82.7 million, and depreciation was $2.0 million.

 

    For the full year 2016, GAAP revenue was $184.5 million, change in deferred revenue was $78.6 million, non-GAAP expenses were $331.6 million, and depreciation was $7.2 million.

Deferred Revenue

 

    Deferred revenue was $185.4 million as of December 31, 2016, an 18 percent increase over the $156.8 million reported as of September 30, 2016 and a 74 percent increase over the $106.8 million reported as of December 31, 2015.

Cash & Investments

 

    Cash and investments totaled $89.2 million as of December 31, 2016, compared to $95.6 million as of September 30, 2016 and $96.9 million as of December 31, 2015.

 

    Operating cash used was $0.6 million for the fourth quarter of 2016, compared to $18.8 million for the same period last year.

 

    Operating cash used was $81.5 million for the full year of 2016, compared to $99.3 million for the prior year.


LOGO

 

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release.

Recent Business Highlights

 

    Hortonworks Appoints Raj Verma as President and Chief Operating Officer. In January 2017, we announced the appointment of Raj Verma as president and chief operating officer. Verma is an experienced enterprise sales veteran who brings more than 20 years of enterprise sales and marketing leadership. Previously, Verma was chief operating officer of TIBCO Software Inc., where he was instrumental in taking TIBCO from $300 million to more than $1 billion in annual revenue.

 

    Hortonworks Enterprise Data Warehouse Optimization Solution Fast Tracks Customers to Modern Business Intelligence. In January 2017, we announced the Enterprise Data Warehouse (EDW) Optimization Solution, the industry’s only turnkey Hadoop-powered Business Intelligence solution. This is the first Hortonworks Solution powered by the Hortonworks Data Platform (HDP™) and technology from partners Syncsort and AtScale. With the EDW Optimization Solution, customers can extend the value of existing EDW investments and overcome challenges, risks and costs of introducing new solutions into legacy infrastructure.

 

    Hortonworks Celebrates 2016 Partnerworks Award Winners and Announces Record Ecosystem Growth. In January 2017, we announced our Partnerworks program had exceeded 2,100 members, illustrating strong demand for technologies that utilize data to transform business outcomes. In addition, we announced the winners of our inaugural Global Partner Awards for 2016: Microsoft, Accenture and Dell EMC.

 

    United Network for Organ Sharing Chooses Hortonworks Data Platform to Help Save Lives. In December 2016, we announced that the United Network for Organ Sharing, the private non-profit organization that manages the United States organ transplant system, is using HDP to help transplant professionals make more informed decisions when life-saving organs become available.

 

    Hortonworks Advances Cloud Strategy with Availability of Hortonworks Data Cloud for Amazon Web Services. In November 2016, we announced the availability of Hortonworks Data Cloud on the Amazon Web Services (AWS) Cloud. Hortonworks Data Cloud for AWS enables users to harness the agility and elasticity of Apache Hadoop and Apache Spark in the cloud for powering new workloads and analytic applications.

 

    Hortonworks Powers Modernization of Health Insurance Industry. In November 2016, we announced that the Health Care Service Corporation is using HDP to modernize its data architecture and unlock the value of analytics. With HDP, leading providers of health insurance can provide better service to millions of healthcare plan members.

 

    Hortonworks Celebrates 1,000 Customer Milestone. In November 2016, we announced that we had exceeded 1,000 customers worldwide. In the six years since our founding, we have rapidly built our customer base across industries—including healthcare, manufacturing, financial services, energy, telecommunications and public sector—by delivering the industry’s only open and connected data platforms to manage data-at-rest and data-in-motion in any environment.


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    Hortonworks Accelerates Global Expansion with Appointment of Open Source Industry Sales Veterans. In November 2016, we announced the addition of Joe Morrissey as vice president of international and Kamal Brar as vice president and general manager of Asia Pacific to our rapidly expanding international team. Morrissey will be responsible for developing and executing our sales and expansion strategy across the entire international business, with Brar responsible for leading and developing the growth opportunities across the Asia Pacific region.

Financial Outlook

As of February 9, 2017, Hortonworks is providing the following financial outlook for its first quarter and full year 2017:

For the first quarter of 2017, we expect:

Total GAAP revenue of $52.0 million.

GAAP operating margin between negative 115 percent and negative 110 percent, which includes stock-based compensation and related expenses and amortization of purchased intangibles of approximately $26.0 million.

Non-GAAP operating margin between negative 65 percent and negative 60 percent, which excludes stock-based compensation and related expenses and amortization of purchased intangibles of approximately $26.0 million.

For the full year 2017, we expect:

Total GAAP revenue between $235.0 million and $240.0 million.

GAAP operating margin between negative 85 percent and negative 80 percent, which includes stock-based compensation and related expenses and amortization of purchased intangibles of approximately $105.0 million.

Non-GAAP operating margin between negative 50 percent and negative 45 percent, which excludes stock-based compensation and related expenses and amortization of purchased intangibles of approximately $105.0 million.

GAAP operating margin outlook includes estimates of stock-based compensation and related expenses and amortization of purchased intangibles in future periods and assumes, among other things, the occurrence of no additional acquisitions, investments or restructuring and no further revisions to stock-based compensation and related expenses.

Fourth Quarter and Full Year 2016 Earnings Conference Call and Webcast Details

Hortonworks will hold a conference call and webcast to discuss the Q4 and FY 2016 results, Q1 and FY 2017 outlook and related matters at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on Thursday, February 9, 2017. Interested parties may access the call by dialing (877) 930-7786 in the U.S. or (253) 336-7423 from international locations. In addition, a live audio webcast of the conference call will be available on the Hortonworks Investor Relations website at http://investors.hortonworks.com.

Shortly after the conclusion of the conference call, a replay of the audio webcast will be available on the Hortonworks Investor Relations website for approximately seven days.


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Statement Regarding Use of Non-GAAP Financial Measures

Hortonworks reports non-GAAP results for gross profit and margins, operating loss and margins, net loss, basic and diluted net loss per share and expenses in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Hortonworks’ financial measures under GAAP include stock-based compensation expense, acquisition-related items, amortization of intangible assets, depreciation expense, and other income/expense, net. Management believes the presentation of operating results that exclude these items provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also believes that this supplemental non-GAAP information is therefore useful to investors in analyzing and assessing the Company’s past and future operating performance.

Non-GAAP cost of revenue is calculated as GAAP cost of revenue less stock-based compensation expense and amortization of intangibles. Management believes non-GAAP cost of revenue offers investors useful supplemental information regarding the performance of our business, and will help investors better understand our business.

Non-GAAP gross profit is calculated as non-GAAP revenue less our non-GAAP cost of revenue. Management believes non-GAAP gross profit offers investors useful supplemental information to help compare our recurring core business operating results over multiple periods.

Non-GAAP gross margin is calculated as non-GAAP gross profit divided by non-GAAP revenue. Management believes that non-GAAP gross margin offers investors useful supplemental information in evaluating our ongoing operational performance, and will help investors better understand our underlying business.

Non-GAAP expenses is calculated as GAAP cost of revenue plus stock-based compensation expense and amortization of intangibles plus GAAP operating expenses plus stock-based compensation expense and amortization of intangibles. Management believes non-GAAP expenses offers investors useful supplemental information regarding the cost structure of our business, and will help investors better understand our business.

Non-GAAP operating loss is calculated as GAAP operating loss plus GAAP revenue adjustments and non-GAAP cost of revenue and operating expense adjustments. The Company believes that non-GAAP operating loss is a useful metric for management and investors because it excludes the effect of stock-based compensation expense, acquisition-related retention bonus, amortization of intangibles and other nonrecurring items so that our management and investors have a greater visibility to the underlying performance of the business operations.

Non-GAAP operating margin is calculated as non-GAAP operating loss divided by non-GAAP revenue. Management believes that non-GAAP operating margin offers investors useful supplemental information in evaluating our operating performance because it provides them with an additional tool to compare business performance across companies and across periods.

Non-GAAP net loss is calculated as GAAP net loss plus GAAP revenue adjustments and non-GAAP cost of revenue and operating expense adjustments. Management believes non-GAAP net loss offers investors useful supplemental information to help identify trends in our underlying business and perform related trend analyses.


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Non-GAAP net loss per basic and diluted share is calculated as non-GAAP net loss divided by the weighted-average shares outstanding for the period. Management believes non-GAAP net loss per basic and diluted share offers investors useful supplemental information, and will help investors better understand our performance and return to shareholders.

Adjusted EBITDA is calculated as revenue plus change in deferred revenue minus non-GAAP expenses plus depreciation. Management uses adjusted EBITDA in conjunction with traditional GAAP operating performance measures as part of our overall assessment of our performance and for planning purposes, including the preparation of our annual operating budget, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance.

Use of Forward-Looking Statements

This press release contains “forward-looking statements” regarding our performance within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “may,” “will,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” or the negative thereof or comparable terminology, and may include (without limitation) information regarding our expectations, goals or intentions regarding future performance, expenses or activity in international markets, including the forward-looking statements, including in the section titled “Financial Outlook.” Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.

The important factors that could cause actual results to differ materially from those in any forward-looking statements include, but are not limited to, the following: (i) we have a history of losses, and we may not become profitable in the future, (ii) we have a limited operating history, which makes it difficult to predict our future results of operations, and (iii) we do not have an adequate history with our support subscription offerings or pricing models to accurately predict the long-term rate of support subscription customer renewals or adoption, or the impact these renewals and adoption will have on our revenues or results of operations.

Further information on these and other factors that could affect our financial results and the forward-looking statements in this press release are included in our Form 10-K filed on March 15, 2016, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016, June 30, 2016 and September 30, 2016 filed on May 9, 2016, August 9, 2016 and November 8, 2016, respectively, or in other filings we make with the Securities and Exchange Commission from time to time, particularly under the caption Risk Factors.

All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and we undertake no obligation, and do not intend, to update these forward-looking statements.


LOGO

 

About Hortonworks

Hortonworks is an industry leading innovator that creates, distributes and supports enterprise-ready open data platforms and modern data applications that deliver actionable intelligence from all data: data-in-motion and data-at-rest. Hortonworks is focused on driving innovation in open source communities such as Apache Hadoop, NiFi and Spark. Along with its 2,000+ partners, Hortonworks provides the expertise, training and services that allow customers to unlock transformational value for their organizations across any line of business.

Hortonworks, Powering the Future of Data, HDP and HDF are registered trademarks or trademarks of Hortonworks, Inc. and its subsidiaries in the United States and other jurisdictions. For more information, please visit www.hortonworks.com. All other trademarks are the property of their respective owners.


Hortonworks, Inc.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

 

     Three Months Ended
December 31,
    Years Ended
December 31,
 
     2016     2015     2016     2015  

Support subscription and professional services revenue:

        

Support subscription

   $ 35,569      $ 25,555      $ 126,689      $ 77,728   

Professional services

     16,390        11,866        57,772        44,216   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total support subscription and professional services revenue

     51,959        37,421        184,461        121,944   

Cost of revenue:

        

Support subscription

     5,849        4,491        23,030        13,705   

Professional services

     12,129        11,206        49,140        41,466   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     17,978        15,697        72,170        55,171   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     33,981        21,724        112,291        66,773   

Operating expenses:

        

Sales and marketing

     46,477        37,969        183,542        133,052   

Research and development

     25,569        20,407        99,202        66,645   

General and administrative

     19,131        13,901        80,723        46,669   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     91,177        72,277        363,467        246,366   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (57,196     (50,553     (251,176     (179,593

Other income, net

     625        422        712        908   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income tax expense

     (56,571     (50,131     (250,464     (178,685

Income tax expense

     482        103        1,224        432   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (57,053   $ (50,234   $ (251,688   $ (179,117
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share of common stock, basic and diluted

   $ (0.94   $ (1.11   $ (4.40   $ (4.13
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares used in computing net loss per share of common stock, basic and diluted

     60,606,303        45,384,975        57,203,067        43,318,044   


Hortonworks, Inc.

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

     December 31, 2016     December 31, 2015  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 53,332      $ 35,748   

Short-term investments

     31,764        58,553   

Accounts receivable, net

     82,368        53,913   

Prepaid expenses and other current assets

     4,831        5,276   
  

 

 

   

 

 

 

Total current assets

     172,295        153,490   

Property and equipment, net

     19,381        15,422   

Long-term investments

     4,084        2,592   

Goodwill

     34,333        34,333   

Intangible assets, net

     3,121        4,002   

Other assets

     1,306        872   

Restricted cash

     1,316        1,308   
  

 

 

   

 

 

 

Total assets

   $ 235,836      $ 212,019   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 6,749      $ 6,365   

Accrued compensation and benefits

     17,978        12,685   

Accrued expenses and other current liabilities

     11,752        14,989   

Deferred revenue

     129,840        90,407   
  

 

 

   

 

 

 

Total current liabilities

     166,319        124,446   

Long-term deferred revenue

     55,550        16,372   

Other long-term liabilities

     2,605        3,610   
  

 

 

   

 

 

 

Total liabilities

     224,474        144,428   
  

 

 

   

 

 

 

Stockholders’ equity:

    

Preferred stock, par value of $0.0001 per share—25,000,000 shares authorized; none issued or outstanding as of December 31, 2016 and December 31, 2015

     —          —     

Common stock, par value of $0.0001 per share—500,000,000 shares authorized; 61,122,863 and 45,692,391 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively

     7        5   

Additional paid-in capital

     714,960        518,986   

Accumulated other comprehensive loss

     (1,063     (546

Accumulated deficit

     (702,542     (450,854
  

 

 

   

 

 

 

Total stockholders’ equity

     11,362        67,591   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 235,836      $ 212,019   
  

 

 

   

 

 

 


Hortonworks, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

 

     Three Months Ended
December 31,
    Years Ended
December 31,
 
     2016     2015     2016     2015  

CASH FLOWS FROM OPERATING ACTIVITIES:

        

Net loss

   $ (57,053   $ (50,234   $ (251,688   $ (179,117

Adjustments to reconcile net loss to net cash used in operating activities:

        

Depreciation

     2,007        1,438        7,244        4,499   

Amortization of premiums from investments

     135        193        856        949   

Amortization of intangible assets

     221        222        881        393   

Stock-based compensation expense

     23,263        17,220        98,823        40,939   

Impairment of promissory note and interest receivable

     1,966        —          2,683        —     

Loss on disposal of assets

     —          2        —          522   

Deferred income taxes

     27        (140     27        (140

Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies

     (440     60        (335     60   

Provision for losses on accounts receivable

     105        20        514        20   

Other

     32        (66     (43     (66

Changes in operating assets and liabilities:

        

Accounts receivable

     (5,217     (8,370     (29,584     (21,629

Prepaid expenses and other current assets

     1,506        783        949        (1,519

Other assets

     (407     146        (464     (580

Accounts payable

     (2,335     1,570        1,773        1,648   

Accrued expenses and other current liabilities

     2,877        2,083        2,334        6,154   

Accrued compensation and benefits

     2,729        1,272        5,630        2,801   

Deferred revenue

     29,830        15,233        79,493        44,381   

Other long-term liabilities

     129        (211     (613     1,349   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in operating activities

     (625     (18,779     (81,520     (99,336
  

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

        

Purchases of investments

     —          (11,643     (80,519     (102,631

Proceeds from sales of investments

     5,840        —          13,156        —     

Proceeds from maturities of investments

     15,928        41,493        89,248        118,510   

Purchases of property and equipment

     (1,716     (1,466     (12,781     (12,839

Acquisitions, net

     —          —          —          (3,541

Issuance of promissory note receivable

     —          —          —          (2,500

Change in restricted cash

     —          —          (11     31   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     20,052        28,384        9,093        (2,970
  

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

        

Proceeds from issuance of common stock

     645        1,665        9,466        10,417   

Purchase of treasury stock

     (46     —          (520     —     

Payment of contingent consideration related to an acquisition

     —          —          (1,625     —     

Payments of acquisition-related liabilities

     (1,651     —          (3,526     —     

Payments of capital lease liability

     (69     (170     (172     (170

Payment of fees for line of credit

     (243     —          (243     —     

Proceeds from follow-on public offering, net of issuance costs

     —          —          87,233        —     

Payments for deferred offering costs

     —          —          —          (835
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (used in) provided by financing activities

     (1,364     1,495        90,613        9,412   
  

 

 

   

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (561     (442     (602     (442

Net increase (decrease) in cash and cash equivalents

     17,502        10,658        17,584        (93,336

Cash and cash equivalents—Beginning of period

     35,830        25,090        35,748        129,084   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents—End of period

   $ 53,332      $ 35,748      $ 53,332      $ 35,748   
  

 

 

   

 

 

   

 

 

   

 

 

 


Hortonworks, Inc.

Reconciliation of GAAP to Non-GAAP

(in thousands, except share and per share amounts)

 

     Three Months Ended
December 31,
    Years Ended
December 31,
 
     2016     2015     2016     2015  

Non-GAAP Revenue:

        

GAAP revenue

   $ 51,959      $ 37,421      $ 184,461      $ 121,944   

Contra-revenue

     —          —          —          65   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP revenue

   $ 51,959      $ 37,421      $ 184,461      $ 122,009   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP Gross Profit and Margin:

        

Gross profit

   $ 33,981      $ 21,724      $ 112,291      $ 66,773   

Stock-based compensation expense

     1,593        1,086        5,700        2,702   

Contra-revenue

     —          —          —          65   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP gross profit

   $ 35,574      $ 22,810      $ 117,991      $ 69,540   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin percentages:

        

GAAP

     65     58     61     55

Non-GAAP

     68     61     64     57

Non-GAAP Operating Loss and Margin:

        

Operating loss

   $ (57,196   $ (50,553   $ (251,176   $ (179,593

Stock-based compensation expense

     23,263        17,220        98,823        40,939   

Contra-revenue

     —          —          —          65   

Acquisition-related retention bonus

     —          210        —          4,048   

Loss on asset write-off

     —          —          —          503   

Impairment of promissory note and interest receivable

     1,966        —          2,683        —     

Litigation and legal related expenses

     852        —          1,452        —     

Amortization of intangible

     221        222        881        393   

Advisory fees

     200        —          200        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP operating loss

   $ (30,694   $ (32,901   $ (147,137   $ (133,645
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin percentages:

        

GAAP

     (110 )%      (135 )%      (136 )%      (147 )% 

Non-GAAP

     (59 )%      (88 )%      (80 )%      (110 )% 

Non-GAAP Net Loss and Net Loss per Share:

        

Net loss

   $ (57,053   $ (50,234   $ (251,688   $ (179,117

Stock-based compensation expense

     23,263        17,220        98,823        40,939   

Contra-revenue

     —          —          —          65   

Acquisition-related retention bonus

     —          210        —          4,048   

Loss on asset write-off

     —          —          —          503   

Impairment of promissory note and interest receivable

     1,966        —          2,683        —     

Litigation and legal related expenses

     852        —          1,452        —     

Amortization of intangible

     221        222        881        393   

Advisory fees

     200        —          200        —     

Tax benefit related to acquisitions

     —          (140     —          (140
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss

   $ (30,551   $ (32,722   $ (147,649   $ (133,309
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares

     60,606,303        45,384,975        57,203,067        43,318,044   

Non-GAAP net loss per share

   $ (0.50   $ (0.72   $ (2.58   $ (3.08

Adjusted EBITDA:

        

GAAP revenue

   $ 51,959      $ 37,421      $ 184,461      $ 121,944   

Add: Change in deferred revenue

     28,589        14,708        78,611        43,856   

Less: Cost of revenue

     (17,978     (15,697     (72,170     (55,171

Less: Operating expenses

     (91,177     (72,277     (363,467     (246,366

Add: Non-GAAP cost of revenue and operating expense adjustments:

        

Stock-based compensation expense

     23,263        17,220        98,823        40,939   

Contra-revenue

     —          —          —          65   

Acquisition-related retention bonus

     —          210        —          4,048   

Loss on asset write-off

     —          —          —          503   

Impairment of promissory note and interest receivable

     1,966        —          2,683        —     

Litigation and legal related expenses

     852        —          1,452        —     

Amortization of intangible

     221        222        881        393   

Advisory fees

     200        —          200        —     

Depreciation expense

     2,007        1,438        7,244        4,499   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ (98   $ (16,755   $ (61,282   $ (85,290
  

 

 

   

 

 

   

 

 

   

 

 

 

Stock-based compensation expense by function:

        

Cost of revenue

   $ 1,593        1,086      $ 5,700        2,702   

Sales and marketing

     6,479        4,806        25,787        11,688   

Research and development

     10,148        6,942        36,540        15,193   

General and administrative

     5,043        4,386        30,796        11,356   
  

 

 

   

 

 

   

 

 

   

 

 

 

Stock-based compensation expense

   $ 23,263      $ 17,220      $ 98,823      $ 40,939   
  

 

 

   

 

 

   

 

 

   

 

 

 

For Additional Information Contact:

Reuben Gallegos

VP, Investor Relations and Corporate Development

rgallegos@hortonworks.com