Hortonworks Reports $33M in Revenue, 152 New Support Customers
Hadoop distributor Hortonworks (NASDAQ: HDP) today reported a $44.5 million loss on $33.1 million in total revenues for its third quarter ended September 30. The CEO of the young company says he was pleased with the performance, which slightly exceeded Wall Street expectations.
Hortonworks’ business model is dependent on selling software subscriptions to customers who use its HDP distribution of Hadoop, which it essentially gives away. For the third quarter, the company sold $21.7 million worth of subscriptions (computed on a GAAP method), compared to $18.8 million in the second quarter. Its professional services revenue for the third quarter, $11.3 million, actually declined by about $500,000 compared to the previous quarter.
“We are pleased with our third quarter performance, which was highlighted by support subscription revenue growth of 168% year-over-year and solid customer momentum with the addition of 152 new support subscription logos,” said Rob Bearden, chairman and CEO of the Santa Clara, California-based company.
Hortonworks reported total operating expenses of $62.7 million, an increase of 54 percent compared to the third quarter of 2014, but an increase of just 5 percent compared to the second quarter of 2015.
It reported a net loss of $44.5 million, or $1.01 per basic diluted share. That was up slightly from a year ago, when it recorded a $39.5 million loss, or $8.98 per basic diluted share. The loss was a tad higher than the second quarter of 2015, when it recorded a net loss of $42.3 million.
The company says it has deferred revenue of $90.1 million, an 89 percent increase over the $47.7 million reported during the same period a year ago.
The company ticked its financial expectations for the fiscal year up a tad. In August, the company said it expected third quarter revenues to be between $29 million and $31 million, with an adjusted EBITDA loss of $22 million to $24 million. Its actual adjusted EBITDA loss was $20.7 million.
Three months ago, the company was forecasting full-year revenues of between $114.0 million and $117.0 million. Today, it forecast full year revenues to be between $118.6 million and $120.6 million. For the fourth quarter, it’s expecting revenues between $32 million and $34 million.
In after-hours trading, HDP was up less than a percent. The company is trading around $20.50 per share, about 26 percent lower than its all-time high near $28 in August, but above its December 2014 IPO of $16 per share.