Hortonworks Inc (NASDAQ:HDP) Maintains Upward Trajectory

Hortonworks Inc (NASDAQ:HDP)

Hortonworks Inc (NASDAQ:HDP)

Hortonworks Inc (NASDAQ:HDP) has had an impressive 2017 start with $56.0 million in quarterly GAAP revenue for Q1 2017. This represents a 35% increase from what the company reported in Q1 2016.

Hortonworks seem to reaping big from its cloud business. The company has for the past few years been involved in offering cloud and data management to clients. The company has been a major player in Hadoop market which hit $7.69 billion in 2016 according to Zion Market Research. The market is poised for a 50% growth over the coming years and is expected to worth $87.14 billion in 2022.

The company reported $38.1 million in GAAP gross profit in Q1 2017 compared to $25.0 million that was reported in Q1 2016. Non-GAAP gross profit amounted to $39.5 million in Q1 2017 compared to $26.3 million reported a year ago. Hortonworks reported a much higher GAAP gross margin of 68% compared to 60% reported a year ago. Non-GAAP gross margin rose to 71% from the 64% reported in Q1 2016.

Hortonworks Inc (NASDAQ:HDP)’s impressive quarterly results were also reflected by a decrease in GAAP operating loss to $54.4 million from the $65.3 million that was reported in Q1 2016. Quarterly Non-GAAP operating loss amounted to $30.5 million in Q1 2017 representing a slight drop from the $34.9 million reported a year ago. During the quarter, GAAP operating margin stood at 97% compared to -158% reported in Q1 2016. The company reported -54% in Non-GAAP operating margin versus -84% reported in Q12016.

There was a significant drop in GAAP net loss in Q1 2017 with the company reported (-$54.8) million or (-$0.89) per share down from the (-$65.8) million or (-$1.26) per share reported in Q1 2016. Non-GAAP net loss amounted to (-$30.9) million or (-$0.50) per share down from (-$35.4) million or (-$0.68) per share reported in Q1 2016.

Hortonworks Inc (NASDAQ:HDP) reported a 7% increase in deferred revenue to $198.2 million compared to $185.4 million that the company reported at the close of the last financial year. It also represents a 66% increase from the $119.1 reported in Q12016.

At the close of the quarter, the company’s cashbook had $83.4 million in cash and short term investments a drop from $89.2 million that the company had at the close of the last financial year and $149 million at the close of Q12016. Operating cash for the quarter amounted to $9.0 million compared to $35.7 million reported in Q12016.

While commenting to these results, Hortonworks Inc (NASDAQ:HDP) chief executive officer and Chairman, Rob Bearden, said the company has reported very good results in the first quarter and they hope to maintain the momentum in the coming quarters and in the full year results. He added that the company reported improvement in its customer base across healthcare analytics, food, mobile gaming, software security and financial services industries.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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