Hortonworks Inc (NASDAQ:HDP) shareholders just learned that “in-line revs” is not something you can get away with when you are the leading edge of the twenty-first century in technology, with a mile-long list of around-the-next-corner buzzwords, like big-data, AI, machine learning, secure Internet of anything data flows, and curated real-time business insights. We noted a few weeks back that we were concerned about Cloudera and Hortonworks because they seemed a bit ripe as fast-money speculative names collected after the Sand Hill Road crowd had already marketed shares and cashed out.
In any case, here we are. We’re sure this will be a killer opportunity (inside of CLDR) at some point. But there’s no telling how much Mr. Max Pain will deal out to the spec players first.
Hortonworks Inc (NASDAQ:HDP) bills itself as a company that provides data management platforms, services, and solutions in North America, the Asia Pacific, Europe, and Latin America.
It offers Hortonworks Data Platform (HDP), an enterprise-scale data management platform which provides a platform for multi-workload data processing; Hortonworks DataFlow, a data-in-motion platform to automate and secure Internet of anything data flows, as well as to collect, conduct, and curate real-time business insights and actions derived from data in motion, including sensors, machines, geolocation devices, clicks, server logs, and social feeds; and Hortonworks DataPlane Service simplifies managing, securing, governing, provisioning, and consuming distributed data systems.
The company also provides Azure HDInsight, a data cloud service that provides customers flexible big data environments on the Azure cloud; Hortonworks Data Cloud for Amazon Web Services, a big data cloud service for analyzing and processing data, and enabling businesses to achieve insights quickly and with flexibility; Hortonworks Cybersecurity Platform (HCP) offers view of business risk through a security lens; and Hortonworks Sandbox, a personal, portable, and free to use Hadoop environment designed to offer the easiest way to get started with HDP or HDF.
In addition, it offers support subscription, consulting, and education services. Further, the company’s connected data platforms are primarily provided under the Apache open source license with rights to use, copy, modify, and redistribute the software. It sells its products through direct sales team and reseller partners. Hortonworks, Inc. was founded in 2011 and is headquartered in Santa Clara, California.
By the Numbers
We started off by noting that HDP recently hit the wires with the announcement of the company’s Q3 report card.
Total GAAP revenue was $87.2 million for the third quarter of 2018, an increase of 26 percent compared to the third quarter of 2017.
Total GAAP gross profit was $63.4 million for the third quarter of 2018, compared to $47.7 million for the same period last year. Non-GAAP gross profit was $65.9 million for the third quarter of 2018, compared to $49.7 million for the same period last year. GAAP gross margin was 73 percent for the third quarter of 2018, compared to 69 percent for the same period last year. Non-GAAP gross margin was 76 percent for the third quarter of 2018, compared to 72 percent for the same period last year.
GAAP operating loss was $31.7 million for the third quarter of 2018, compared to $44.2 million for the same period last year. Non-GAAP operating loss was $5.2 million for the third quarter of 2018, compared to $15.4 million for the same period last year. GAAP operating margin was negative 36 percent for the third quarter of 2018, compared to negative 64 percent for the same period last year. Non-GAAP operating margin was negative 6 percent for the third quarter of 2018, compared to negative 22 percent for the same period last year.
“We are pleased with our third quarter performance, which builds on top of the significant progress we have made during the first half of 2018,” said Rob Bearden, chief executive officer of Hortonworks. “Enterprise customers continue to choose Hortonworks’ platform and value-added services because they recognize the importance of end-to-end data lifecycle management across on-premises, multiple public clouds and the edge. Our open source approach to common security, data governance and management accelerates the hybrid cloud journey for customers as they transform their business models and focus on data intensive apps powered by AI.”
In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($101.3M against $210.6M, respectively).