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November 3, 2016

Hortonworks: Over 1,000 Customers Served

Hortonworks crossed the 1,000-customer mark during the third quarter, and now counts 60 of the Fortune 100 as paying customers, it announced today. The Hadoop distributor also announced today that it recorded quarterly revenues of $47.5 million during the quarter ended September 30, a 47% increase over the third quarter of 2015.

Hortonworks (NASDAQ: HDP) recorded $72.5 million in operating billings for the quarter. That represents a 66% increase compared to the third quarter of 2015, and–perhaps more importantly–a potential sign that Horton may finally be overcoming some of the financial struggles that have befallen it since it become the first Hadoop distributor to go public nearly two years ago.


HDP quarterly billings growth (source: Hortonworks)

Deferred revenue increased by 47% to $156.8 million, showing a decent pipeline for subscriptions to its two main products, Hortonworks Data Platform (HDP) and Hortonworks Data Flow (HDF).

Wall Street responded to the decent earnings report by pushing HDP up 8% in after-hours trading. That essentially washed out a 7.2% decline in stock value during the day’s session. Hortonworks maintains a market capitalization of $367 million, down significantly from its IPO in December 2014.

Total operating expenses for the third quarter totaled $92.1 million. That is up 47% compared to the $62.7 million in expenses Hortonworks had in the third quarter of 2015, and the same rate of growth Horton experienced for the revenue side of the equation for the third quarter. (The company will eventually need to find a way to grow revenues faster than expenses, although it will sacrifice profitability at this stage of the game in exchange for growth)


Hortonworks customer logos (source: Hortonworks)

For the quarter, Hortonworks recorded a GAAP net loss of $64.7 million, or $1.10 per basic and diluted share, compared to a net loss of $45.3 million, or $1.03 per basic and diluted share, in the same quarter a year ago. For the year, the company expects GAAP revenue to be $180.5 million. Non-GAAP expenses will amount to $331.9 million.

“Q3 was a milestone quarter for Hortonworks,” said Rob Bearden, CEO and chairman of Hortonworks (NASDAQ: HDP). “Customers in 60 countries have selected our connected data platforms to leverage a comprehensive data management strategy spanning on-premise, hybrid and public cloud environments.”

In a separate release, the company announced that it crossed the 1,000 customer mark. Major logos include Bloomberg, Progressive Insurance, Telefónica, Noble Energy, Symantec, Spotify, eBay, and Western Digital. The company also claims to have over 25% of the Fortune Global 500 as customers.

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