Cloudera Sinks 35% On CEO Departure, Revenue Outlook Cut

(RTTNews) - Shares of Cloudera Inc. (CLDR) tanked 35% on Wednesday after the enterprise data cloud company lowered its 2020 revenue outlook and announced the retirement of CEO Tom Reilly.

Cloudera said Tom Reilly will retire as Chief Executive Officer and as a member of the Board of Directors, effective July 31, 2019. The Board appointed Martin Cole, Chairman of the Board, as interim Chief Executive Officer. The Board will conduct a search for a permanent CEO.

"Tom and the Board have always been committed to continually evaluating Cloudera's progress and ensuring that we are executing to drive long-term value. Accordingly, we have mutually agreed with Tom that this is the right time for a leadership transition," Cole said.

Reilly became Cloudera's CEO in 2013. Prior to that he was CEO of ArcSight, which HP bought in 2010, and CEO of Trigo, which IBM bought in 2004.

Net loss for the first quarter widened to $103.1 million or $0.38 per share from $52.3 million or $0.36 per share last year. Adjusted loss per share for the quarter were $0.13 per share.

Total revenue for the quarter rose to $187.5 million from $103.5 million.

Analysts polled by Thomson Reuters estimated loss of $0.23 per share and revenues of $188.48 million for the quarter.

"We continue to make substantial progress toward our goal of delivering the industry's first enterprise data cloud, designed for powerful analytics across hybrid and multi-cloud environments with common security and governance," said outgoing CEO Reilly.

Looking forward to the second quarter, the company expects revenues of $180 million to $183 million and adjusted loss per share of $0.11 to $0.08. Analysts currently estimate loss of $0.09 per share and revenues of $203.29 million.

For the full year 2020, the Cloudera expects revenues of $745 million to $765 million and adjusted loss of $0.32 to $0.28 per share. Analysts currently estimate loss of $0.35 per share and revenues of $844.71 million.

Previously, Cloudera expected revenues of $835 million to $855 million and adjusted loss of $0.36 to $0.32 per share for 2020.

CLDR closed Wednesday's trading at $8.80, down $0.31 or 3.40%, on the Nasdaq. The stock further slipped $2.72 or 30.91% in the after-hours trading.