Hortonworks Revenue Up 154 Percent
Hortonworks brought in $30.7 million in revenue for the second quarter ended June 30, a 154 percent increase over the first quarter, it reported today. The company, which went public in December, also raised its revenue guidance for the remainder of 2015, a good sign for the Hadoop community as a whole.
The company’s stock, which is traded on the NASDAQ National Market under the symbol HDP, was up more than $3.30, or 14 percent, in after hours trading, signaling the approval of investors.
While revenue was up sharply from the first quarter, HDP has yet to show a profit. The company reported a net loss of $42.3 million, or $1.00 per diluted share, compared to a first quarter net loss of $27 million, or nearly $6.50 per diluted share. On a non-GAAP basis, the net loss was $34.1 million in the second quarter, compared to $21.9 million in the first quarter.
In terms of customers, the company added 119 new “logos,” or support subscriptions, during the quarter. That number is up nearly 180 percent from July 1, 2014, according to Hortonworks CEO Rob Bearden. The company has a grand total of about 550 customers.
The company also issued its revenue forecast for the third quarter, when it expects to bring in between $29.0 and $31.0 million, and a loss between $22.0 and $24.0 million (on an EBITDA basis). For the full year, the company expects to have revenues between $114.0 million and $117.0 million, and a loss between $82.0 million and $88.0 million (on an EBITDA basis).
That full-year guidance is up substantially from the guidance it provided following the release of first-quarter financial results in May, when it told investors to expect full year revenues to fall between $94.0 million and $97.0 million. Its loss forecast remains unchanged. Unless something unexpected happens between now and December 31, Hortonworks will be among the fastest public software companies to achieve $100 million in revenue, if not the fastest, as a Barclay’s report earlier this year suggested.
During a call with investors after the markets closed today, Bearden and other members of the executive team elaborated on the company’s execution, the conditions of the market, and the big data journeys of HDP’s customers.
“We continue to see the pattern of many cases start the Hadoop journey with traditional use cases, such as cost optimization, ETL offloading, and data warehouse optimization,” he said. “However now we are seeing acceleration with new advanced analytic use cases that can be transformative and showcase the real opportunity for HDP to drive value. We group these advanced analytic use cases into three main buckets. The first is data discovery. The next is single view of the customer. And the third is predictive or real time analytics.”
Hortonworks is a bellwether for the Hadoop community, as it’s the only pure-play Hadoop distributor that’s a publicly traded company. That ensures investors and the press with a transparent view of the company’s health. At this time, the company is at the beginning of a growth curve that appears quite healthy, which will keep questions about profits away for a while.