Hortonworks Reports Financial Results for Fourth Quarter and Full Year 2015 

SANTA CLARA, Calif., Feb. 11 -- Hortonworks, Inc. (NASDAQ: HDP) today announced financial results for the fourth quarter and full year 2015.

“We are pleased with our fourth quarter performance, which was highlighted by support subscription revenue growth of 146% year-over-year,” said Rob Bearden, chief executive officer and chairman of the board of directors of Hortonworks. “We more than doubled our customer base in 2015 and exited the year with over 800 customers. As evidenced by our 159% dollar-based net expansion rate over the trailing four quarters, we are excited to serve as the preferred IT partner during this transformational period in the data management industry.”

Fourth Quarter 2015 Financial Highlights:

• Revenue: Total GAAP revenue was $37.4 million for the fourth quarter of 2015, an increase of 196 percent compared to the fourth quarter of 2014.

• Gross Billings: Gross billings were $52.1 million for the fourth quarter of 2015, a 63 percent increase over gross billings of $31.9 million in the same period last year.

• Gross Profit: Total GAAP gross profit was $21.7 million for the fourth quarter of 2015, compared to gross loss of $46.2 million in the same period last year. Non-GAAP gross profit for the fourth quarter of 2015 was $22.8 million, compared to $6.0 million in the fourth quarter of 2014. Non-GAAP gross margin was 61 percent for the fourth quarter of 2015, compared to 36 percent during the same period last year.

• Operating Loss: GAAP operating loss for the fourth quarter of 2015 totaled $50.6 million, compared to a loss of $92.5 million during the fourth quarter last year. Non-GAAP operating loss for the fourth quarter of 2015 was $32.9 million, compared to a loss of $37.0 million for the same period last year.

• Net Loss: GAAP net loss for the fourth quarter of 2015 was $50.2 million, or $1.11 per basic and diluted share, compared to a net loss of $90.6 million, or $5.38 per basic and diluted share, in the fourth quarter of 2014. Non-GAAP net loss for the fourth quarter of 2015 was $32.7 million, or $0.72 per basic and diluted share, compared to a net loss of $36.9 million, or $2.19 per basic and diluted share, in the same period last year.

• Adjusted EBITDA: Adjusted EBITDA for the fourth quarter of 2015 resulted in a loss of $16.8 million, compared to a loss of $21.3 million for the fourth quarter of 2014.

• Deferred Revenue: Deferred revenue was $106.8 million for the fourth quarter of 2015, a 16 percent increase over the $92.1 million reported as of September 30, 2015 and a 70 percent increase over the $62.9 million reported as of December 31, 2014.

• Cash & Investments: As of December 31, 2015, Hortonworks had cash and investments of $96.9 million, compared to $116.3 million as of September 30, 2015 and $204.5 million as of December 31, 2014.

Full Year 2015 Financial Highlights:

• Revenue: Total GAAP revenue was $121.9 million for the year ended December 31, 2015, an increase of 165 percent compared to last year.

• Gross Billings: Gross billings were $165.9 million, a 90 percent increase over gross billings of $87.1 million in fiscal year 2014.

• Gross Profit: Total GAAP gross profit was $66.8 million, compared to gross loss of $34.8 million in fiscal year 2014. Non-GAAP gross profit for the year was $69.5 million, compared to $19.8 million in fiscal year 2014. Non-GAAP gross margin was 57 percent for fiscal year 2015, compared to 38 percent in fiscal year 2014.

• Operating Loss: GAAP operating loss totaled $179.6 million, compared to a loss of $173.5 million during fiscal year 2014. Non-GAAP operating loss for the year was $133.6 million, compared to a loss of $105.7 million for fiscal year 2014.

• Net Loss: GAAP net loss for the year was $179.1 million, or $4.13 per basic and diluted share, compared to a net loss of $177.4 million, or $24.16 per basic and diluted share, in fiscal year 2014. Non-GAAP net loss for fiscal year 2015 was $133.3 million, or $3.08 per basic and diluted share, compared to a net loss of $105.5 million, or $14.37 per basic and diluted share, in fiscal year 2014.

• Adjusted EBITDA: Adjusted EBITDA for the year resulted in a loss of $85.3 million for fiscal year 2015, compared to a loss of $69.5 million for fiscal year 2014.

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

• Booz Allen Hamilton. In February 2016, Hortonworks and Booz Allen Hamilton announced a strategic alliance to advance business transformation. Through this alliance, clients across the federal and commercial sectors will now seamlessly access both Hortonworks Data Platform (HDP) and Booz Allen’s expertise to build and gain transformational insights.

• Partnerworks. In January 2016, Hortonworks announced Partnerworks, a comprehensive global program to support and enable partners selling, implementing and innovating with Hortonworks solutions. The Partnerworks program allows partners to access, align with and gain support from Hortonworks’ open source technology experts and go-to-market capabilities. Partnerworks also offers new and more extensive trainings, access to deep technical resources and new certifications. The new program will help partners accelerate their business while providing best-in-class solutions for customers.

• Arkena. In January 2016, Hortonworks announced that Arkena, one of Europe’s leading media services companies, is using HDP to provide its media customers with an advanced analytics platform to deliver content to OTT customers through its content delivery network. The Apache Hadoop-powered platform enables Arkena to better serve customers’ needs for real-time data analysis.

• Munich Re. In December 2015, Hortonworks announced that Munich Re, one of the world’s leading reinsurers, became a Hortonworks customer. Multiple Munich Re business units will benefit from its newly created data lake platform which leverages HDP for specific business analytics use cases as well as big data applications.

• Apache Spark and Hortonworks Community Connection. In December 2015, Hortonworks announced coming advancements of HDP with the in-memory analytic capabilities of Spark. Specifically, Apache Spark 1.5.2 will include support for Spark SQL and Spark Streaming. Hortonworks’ commitment to Spark is focused on helping customers accelerate data science, maintain seamless data access, drive innovation at the core and ultimately scale for the enterprise. In addition, Hortonworks launched Hortonworks Community Connection, a new online collaboration destination for developers, DevOps, customers and partners to get answers to questions, collaborate on technical articles and share code examples from GitHub.

• Billy Mobile. In November 2015, Hortonworks announced that Billy Mobile, the fast-growing mobile marketing company, adopted HDP for data collection, processing and analysis for significantly more flexibility, scale and reliability than had previously been possible. By partnering with Hortonworks, Billy Mobile is positioned for continuous growth by leveraging Big Data to successfully serve the demanding telco and advertising markets.

• SmartSense. In October 2015, Hortonworks announced that it is delivering proactive issue resolution and personalized Hadoop cluster insights to all of its HDP support subscription customers through its SmartSense technology. For Hortonworks’ support subscription customers, Hortonworks SmartSense delivers the industry’s first proactive monitoring features to build, manage and scale a Hadoop cluster.

Financial Outlook

As of February 10, 2016, Hortonworks is providing the following non-GAAP financial outlook for its first quarter and full year 2016:

For the first quarter of 2016, we expect:

• Total revenue to be $39.5 million.
• Gross billings to be $49.5 million.
• Adjusted EBITDA to be a loss of $23.5 million.

For the full year 2016, we expect:

• Total revenue to be $188.0 million.
• Gross billings to be $261.0 million.
• Adjusted EBITDA to be a loss of $55.0 million.

About Hortonworks

Hortonworks is the leader in accelerating business transformations with Open Enterprise Hadoop by developing, distributing and supporting an enterprise-scale data platform built entirely on open source technology including Apache Hadoop. Our team comprises the largest contingent of builders and architects within the Hadoop ecosystem who represent and lead the broader enterprise requirements within these communities.

The Hortonworks Data Platform provides an open platform that deeply integrates with existing IT investments and upon which enterprises can build and deploy Hadoop-based applications.

Hortonworks has deep relationships with the key strategic data center partners that enable our customers to unlock the broadest opportunities from Hadoop.

For more information, visit www.hortonworks.com. Join us at the Apache Hadoop 10 year anniversary party, held at Hadoop Summit Europe and North America in 2016.

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Source: Hortonworks