Here’s Why Cloudera (CLDR) Stock Climbed Last Month

Cloudera Inc (NYSE:CLDR) was established in 2008 by three former engineers of Yahoo, Facebook, and Google. The company offers a suite of enterprise software for private and public cloud platforms. Its products range from data processing software and machine learning tools to data analytics and data handling applications. Cloudera went public in 2017 by pricing its shares at $15 apiece (see most valuable cloud computing companies).

The enterprise data cloud company recently announced better-than-expected financial results for the first quarter. Cloudera reported adjusted earnings of 12 cents per share for the three months ended April 30, compared to 5 cents per share in the year-ago quarter. Analysts, on average, were expecting Cloudera to report earnings of 8 cents per share.

Revenue for the quarter rose 7 percent on a year-over-year basis to $224.3 million, topping the consensus forecast of $218.83 million. Subscription revenue in the quarter surged 7 percent to $200.7 million, while annualized recurring revenue jumped 12 percent on a year-over-year basis.

Cloudera also announced that private equity firms named KKR and Clayton Dubilier & Rice would take it private in a cash transaction valued at approx. $5.3 billion. Cloudera will receive $16 per share, compared to the closing price of $12.86 in the previous trading session. The deal is expected to close by the end of this year. Cloudera stock jumped more than 24 percent following the announcement.

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Speaking on the results, CEO Rob Bearden said in a statement, “Our strong fiscal first quarter results reflect continued CDP momentum and customer enthusiasm for our market leading hybrid multi-cloud solution-set. We are also pleased to announce our transaction with CD&R and KKR. This transaction provides substantial and certain value to our shareholders while also accelerating Cloudera’s long-term path to hybrid cloud leadership for analytics that span the complete data lifecycle – from the Edge to AI. We believe that as a private company with the expertise and support of experienced investors such as CD&R and KKR, Cloudera will have the resources and flexibility to drive product-led growth and expand our addressable market opportunity.”