Advanced Computing in the Age of AI | Friday, March 29, 2024

Hortonworks Reports Financial Results for First Quarter 2015 

Hortonworks, Inc., the leading contributor to and provider of enterprise Apache Hadoop via the Hortonworks Data Platform (HDP), today announced financial results for the first quarter 2015.

"We are pleased with our first quarter performance which was highlighted by strong revenue growth and the addition of 105 new support subscription customer logos," said Rob Bearden, chief executive officer and chairman of the board of directors, Hortonworks. "This brings our support subscription customer base to over 400 and represents over 200% year-over-year growth in our customer base. Coupled with our 143% dollar-based net expansion rate over the trailing four quarters, it is becoming more evident that our land and expand strategy is leading to rapid Hadoop adoption across many enterprise organizations."

First quarter 2015 financial highlights:

  • Revenue: Total GAAP revenue was $22.8 million, an increase of 167% compared to the first quarter of 2014.
  • Gross Billings: Gross billings were $28.1 million, a 99% increase over the $14.1 million in the same period last year.
  • Gross Profit: Total GAAP gross profit was $11.3 million, compared to gross profit of $2.6 million in the first quarter of 2014. Non-GAAP gross profit for the quarter was $11.6 million compared to $4.8 million in the year ago period. Non-GAAP gross margin was 51% for the first quarter 2015, compared to 45% during the same period last year.
  • Operating Loss: GAAP operating loss for the first quarter totaled $40.5 million, compared to a loss of $20.3 million during the first quarter last year. Non-GAAP operating loss for the first quarter was $32.3 million, compared to a loss of $15.8 million during the same period last year.
  • Net Loss: GAAP net loss for the first quarter was $40.1 million or $0.97 per basic and diluted share, compared to a GAAP net loss of $20.3 million or $5.25 per basic and diluted share in the first quarter of 2014. Non-GAAP net loss for the first quarter of 2015 was $32.0 million or $0.77 per basic and diluted share, compared to a net loss of $15.7 million or $4.08 per basic and diluted share in the same period last year.
  • Adjusted EBITDA: Adjusted EBITDA for the first quarter of 2015 resulted in a loss of $26.1 million, compared to a loss of $12.0 million for the first quarter of 2014.
  • Deferred Revenue: Deferred revenue was $68.3 million, a 117% increase over the $31.5 million reported as of March 31, 2014 and an 8% increase over the $62.9 million reported as of December 31, 2014.
  • Cash & Investments: As of March 31, 2015, Hortonworks had cash and investments of $170.6 million, compared to $204.5 millionas of December 31, 2014.

Recent Business Highlights

  • Open Data Platform (ODP) Update. Big data leaders Hortonworks, IBM and Pivotal recently announced that their respective Hadoop-based platforms (HDP 2.2, IBM Open Platform 4.0, Pivotal HD 3.0) are now aligned on a common ODP core of Apache Hadoop 2.6 (inclusive of HDFS, YARN, MapReduce) and Apache Ambari. The ODP core simplifies adoption of Apache Hadoop for the enterprise, improves ecosystem interoperability and unlocks customer choice. ODP members include the following industry leaders: GE, Hortonworks, IBM, Infosys, Pivotal, SAS, Altiscale, Capgemini, CenturyLink, EMC, PLDT, Splunk, Teradata, Verizon, VMware and WANdisco.
  • Data Governance Initiative (or DGI) Update. Hortonworks announced that JPMorgan Chase & Co. (financial services) and Schlumberger (oil and gas) have joined DGI to address data stewardship and data lifecycle management across their respective industry verticals. Recall other industry leading companies like Aetna (insurance), Target (retail), Merck (healthcare) and SAS (technology) joined the collaboration earlier this year.
  • Pivotal. In April, Hortonworks and Pivotal announced that Pivotal HAWQ, a key product in the Pivotal Big Data Suite, is available and certified on the Hortonworks Data Platform allowing all the benefits of the best-in-class SQL on Hadoop engine to be leveraged by enterprises that are investing in HDP. Additionally, HAWQ can now be managed by Apache Ambari.
  • EMC. Hortonworks and EMC continue to expand their extensive collaboration most recently with the Federation Business Data Lake where EMC can implement a data lake in as little as seven days with HDP enabling the Hadoop capabilities. Additionally, EMC's Isilon OneFS file system is now certified with HDP allowing EMC customers to use HDP on their existing Isilon implementations.
  • Cisco. In March, Cisco announced it established a software resale agreement with Hortonworks including marketing, sales and training worldwide for Cisco sales and support organizations. HDP is available to Cisco's partners and customers on the Cisco Global Price List (GPL) and is offered with single touch deployment on the Cisco Unified Computing System (UCS) Director Express for Big Data.
  • Yahoo! JAPAN. Hortonworks announced that Yahoo! JAPAN is building one of the largest Hadoop clusters in Japan based on HDP and is also engaged in deep joint engineering work that will ultimately be contributed back to the Apache Software Foundation (ASF).
  • SequenceIQ. In April, Hortonworks announced it acquired SequenceIQ, a Hungarian-based open source provider of rapid deployment tools for Hadoop, to deliver a consistent and automated solution for launching on-demand Hadoop clusters in the cloud or to any environment that supports Docker containers.

Financial Outlook

As of May 12, 2015, Hortonworks is providing the following non-GAAP financial outlook for its second quarter and full year 2015:

For the second quarter of 2015, we expect:

  • Total revenue between $22.5 million and $23.5 million, representing year-over-year growth of 90% at the midpoint.
  • Gross Billings between $35.5 million and $37.5 million, representing year-over-year growth of 86% at the midpoint.
  • Adjusted EBITDA resulting in a loss between $21.0 million and $23.0 million.

For the full year 2015, we expect:

  • Total revenue between $94.0 million and $97.0 million, representing year-over-year growth of 83% at the midpoint.
  • Gross Billings between $153.0 million and $159.0 million, representing year-over-year growth of 79% at the midpoint.
  • Adjusted EBITDA resulting in a loss between $78.0 million and $84.0 million.
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