Cloudera Makes A Comeback!

“Earnings Predictions” Members Make 127% Potential Profit!

by Ian Harvey
August 07, 2019


Cloudera made a comeback on Thursday after reporting earnings. Share price jumped more than 14% on Thursday, and another 6+% on Friday, after better-than-expected quarterly results and upbeat guidance.  “Earnings Predictions” Members make 127% potential profit with an Option Call.


Cloudera Inc (NYSE: CLDR), a provider of enterprise data management solutions for machine learning and advanced analytics, reported earnings after the market closed on Wednesday, September 04, 2019.

Cloudera reported second-quarter fiscal 2020 adjusted loss of 2 cents per share, narrower than the Consensus Estimate of a loss of 10 cents and the year-ago quarter’s loss of 5 cents.

Revenues of $196.7 million surged 74.1% year over year driven by growth in subscription revenues and beat the consensus mark of $182 million. Adjusted annualized recurring revenues (ARR) were $672 million, up 21% year over year. Customers with annualized recurring revenues greater than $100,000 were 953.

Cloudera expanded partnership with International Business Machines IBM for a go-to-market initiative, aimed at bringing big data and AI solutions to users across the open Apache Hadoop ecosystem.

As well, Cloudera entered into an agreement to acquire Arcadia Data, a provider of cloud-native AI-powered business intelligence and real-time analytics.

Why the Initial Call Trade on Cloudera?

As explained in the information provided to “Earnings Predictions” Members……

…..“Over the last four quarters, the company has beaten consensus EPS estimates three times.

Cloudera stock has been pummeled since its IPO in April 2017 at $18.10. The stock rose to $22.03 in May 2017 but has since fallen significantly, to $6.50. It has fallen 41.0% year-to-date and 52.0% in the last year. CLDR stock is trading 68.0% below its 52-week high of $20.18.

Despite this, Cloudera stock is expected to make a comeback in the near future!

Positive factors…..

Cloudera announced that many of the leading global healthcare and life sciences companies, including 9 of the top 10 global pharmaceutical companies, have chosen Cloudera to guide them on their journeys to use and benefit from healthcare predictive analytics.

"Healthcare providers, researchers, medical device designers, and pharmaceutical developers are consistently improving the patient outcomes and experience through a deeper understanding of the data available today across the healthcare ecosystem," said Abbas Mooraj, Managing Director of Healthcare and Life Sciences at Cloudera. "It is our goal to provide better, faster, deeper insights using data, analytics and AI."

Cloudera empowers the healthcare and life sciences industry to achieve excellent patient experience and drive invaluable medical research by helping to quickly process, manage, govern and securely analyze complex, real-time streaming data.

On Jun 21, Cloudera and IBM entered into an agreement for a go-to-market initiative, aimed at bringing big data and AI solutions to users across the open Apache Hadoop ecosystem.

IBM will resell the Cloudera Enterprise Data Hub, Cloudera DataFlow and Cloudera Data Science Workbench. In addition, Cloudera will begin to resell IBM's Watson Studio and BigSQL.

On Jul 16, Cloudera and ISID announced a partnership to develop an integrated platform for Mizuho Americas to manage calculations on scalable architecture and implement performance tuning to meet Mizuho's specific IT requirements.

Management expects that the new hybrid architecture utilizing Cloudera's platform on Microsoft Azure will reduce the timeframe for calculations and make the application scalable.

As well, Cloudera's newly enabled Enterprise data cloud solution for digital transformation that aims at driving customer retention and profitability, improve regulatory compliance, reduce fraud, and identify AML (anti-money laundering). This solution has been adopted by a number of global financial services institutions……”

Therefore, advising members to consider buying this.....

.....Options trade: Buy the CLDR JAN 17 2020 7.500 CALL at approximately $0.90.


Moving Forward for Cloudera…..

Future driving forces that were ascertained from the earnings report are…..

Cloudera delivered the initial release of cloud-native data management and analytics offering, Cloudera Data Platform, including Data Hub, Data Warehouse, and Machine Learning public cloud services.

Also, Cloudera launched Enterprise data cloud solution for digital transformation aimed at driving customer retention and profitability, improving regulatory compliance, reducing fraud, and identifying AML (anti-money laundering). This solution has been adopted by a number of global financial services institutions.

As well, Cloudera announced it would buy some assets of San Mateo-based cloud analytics provider Arcadia Data Inc.

The company also announced a new open source licensing and distribution framework, aligning Cloudera's model with the industry standard set by Red Hat. All Cloudera software will be licensed under an OSI-validated open source license in the future.

And for the Third-Quarter Fiscal 2020…..

  • Cloudera expects revenues between $187 million and $190 million.
  • Subscription revenues are estimated between $162 million and $164 million.
  • Non-GAAP net loss is expected between 6 cents and 8 cents per share.

Where to Now?

Analysts have called the results a step in the right direction…..

Wedbush analyst Dan Ives said, “after a hurricane-like storm over the past six months as Cloudera has tried to successfully integrate the Hortonworks deal while navigating a choppy Hadoop market."

Hadoop is the open source Big Data software that both Cloudera and Hortonworks had struggled to build their businesses around.

"We were encouraged to see a nice rebound this quarter as it appears the cross-selling and product strategy is starting to drive stronger annual recurring revenue growth in the field," Ives wrote.

He raised his target on the stock to $8.50 a share from $7.

Other analysts also raised their targets. Instinet raised theirs to $10 from $8, JP Morgan hike theirs to $9 from $8.

Other analysts’ input…..

  • Instinet raised theirs to $10 from $8, and
  • JP Morgan hike theirs to $9 from $8.

If Cloudera can continue to string together a few more beat-and-raise quarters like it just did, it is expected that an upbeat trajectory will continue.


What Can You Do?

Based on analysts’ optimism for Cloudera, the positive earnings and upbeat guidance, along with the compelling factors already mentioned, it is expected that the share price will likely continue to grow.

Therefore, if you agree with this scenario consider the following options trade…..

.....Buy the CLDR FEB 21 2020 7.500 CALL at approximately $1.90.


If you are not a member and are interested in being part of this profitable action just CLICK HERE.


OR other memberships.....CLICK HERE......

An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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