Hortonworks Reports Financial Results for Second Quarter 2015 

SANTA CLARA, Calif., Aug. 6 -- Hortonworks, Inc., the leader in Open Enterprise Hadoop, today announced financial results for the second quarter 2015.

"We are very pleased with our second quarter performance which was highlighted by support subscription revenue growth of 178% year-over-year and solid customer momentum with the addition of 119 new support subscription logos," said Rob Bearden, chief executive officer and chairman of the board of directors of Hortonworks. "As leading enterprise organizations continue to deploy the Hortonworks Data Platform in production at scale, as evidenced by our 144% dollar-based net expansion rate over the trailing four quarters, we could not be more thrilled to serve as their trusted IT partner during this transformational period in the data management industry."

Second quarter 2015 financial highlights:

• Revenue: Total GAAP revenue was $30.7 million for the second quarter of 2015, an increase of 154 percent over the $12.1 millionin the second quarter of 2014.
• Gross Billings: Gross billings were $41.8 million for the second quarter of 2015, a 114 percent increase over the $19.6 million in the same period last year.
• Gross Profit: Total GAAP gross profit was $17.5 million for the second quarter of 2015, compared to gross profit of $5.5 million in the same period last year. Non-GAAP gross profit for the second quarter of 2015 was $18.0 million compared to $5.6 million in the second quarter of 2014. Non-GAAP gross margin was 59 percent for the second quarter 2015, compared to 46 percent during the same period last year.
• Operating Loss: GAAP operating loss for the second quarter totaled $42.1 million, compared to a loss of $23.4 million during the second quarter last year. Non-GAAP operating loss for the second quarter was $33.9 million, compared to a loss of $21.9 millionfor the same period last year.
• Net Loss: GAAP net loss for the second quarter was $42.3 million or $1.00 per basic and diluted share, compared to a net loss of $27.0 million or $6.47 per basic and diluted share in the second quarter of 2014. Non-GAAP net loss for the second quarter of 2015 was $34.1 million or $0.80 per basic and diluted share, compared to a net loss of $21.9 million or $5.26 per basic and diluted share in the same period last year.
• Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2015 resulted in a loss of $21.7 million, compared to a loss of $14.2 million for the second quarter of 2014.
• Deferred Revenue: Deferred revenue was $79.4 million, a 104 percent increase over the $39.0 million reported as of June 30, 2014and a 26 percent increase over the $62.9 million reported as of December 31, 2014.
• Cash & Investments: As of June 30, 2015, Hortonworks had cash and investments of $144.4 million, compared to $204.5 millionas of December 31, 2014.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release.

Recent Business Highlights

• HDP 2.3. In June, Hortonworks announced Hortonworks Data Platform (HDPTM) 2.3, the latest release of the industry's only 100% open source Apache Hadoop platform. This release focused on easing enterprise adoption by eliminating administration complexities, improving developer productivity, enhancing security and data governance, and delivering proactive cluster monitoring (SmartSense).
• Hadoop Summit. Hortonworks and Yahoo! hosted the 8th annual Hadoop Summit North America, the leading conference for the Apache Hadoop community in San Jose, CA. With over 4,000 attendees and 7 tracks featuring more than 160 presentations, the event showcased examples and use cases of how Open Enterprise Hadoop is driving global adoption by transforming every major industry. Highlighting the show was the customer panel including Home Depot, Rogers Communications, Symantec, Schlumberger and Verizon who shared their transformational use cases enabled by the deployment of HDP.
• Microsoft. In June, Hortonworks and Microsoft renewed their three-year contract relating to HDInsight. As Hadoop workloads continue to migrate to cloud architectures like Microsoft's Hadoop-as-a-managed service offering HDInsight, built on HDP, Hortonworks is pleased to strengthen its strategic relationship with Microsoft.
• EMC. Hortonworks and EMC continue to expand on joint collaborative efforts. In August, Hortonworks announced a go-to-market partnership where EMC's sales organization can resell HDP via the EMC Technology Connect Partner Program as a Select partner.
• Internet of Things ("IoT") Applications for Automotive Market. In June, Hortonworks and HARMAN, the leading global infotainment, audio and software services company, announced a joint collaboration to transform the automotive enterprise by enabling the connected car ecosystem with real-time, IoT data, insights and prognostics solutions. Together, Hortonworks and HARMAN will offer solutions to help automotive manufacturers gain valuable insights by analyzing real-time information based on data streaming from connected cars. Key benefits to automakers include preventive warranty maintenance, data discovery for product improvements and a single view of manufacturing operations.
• Oracle. Hortonworks and Oracle continue to expand their collaboration most recently with the certification of both Oracle Data Integrator ("ODI") and Oracle GoldenGate for Big Data on the Hortonworks Data Platform. As integral components of the Oracle Data Integration product portfolio, these certifications will assist customers in taking their Hadoop projects to the next level of enterprise integration. In addition to the latest ODI and GoldenGate integrations, the Hortonworks Data Platform is also certified with the Oracle Big Data Connectors.

Financial Outlook

As of August 5, 2015, Hortonworks is providing the following non-GAAP financial outlook for its third quarter and full year 2015:

For the third quarter of 2015, we expect:

• Total revenue between $29.0 million and $31.0 million, representing year-over-year growth of 135 percent at the midpoint.
• Gross Billings between $40.0 million and $42.0 million, representing year-over-year growth of 91 percent at the midpoint.
• Adjusted EBITDA resulting in a loss between $22.0 million and $24.0 million.

For the full year 2015, we expect:

• Total revenue between $114.0 million and $117.0 million, representing year-over-year growth of 122 percent at the midpoint.
• Gross Billings between $161.0 million and $167.0 million, representing year-over-year growth of 88 percent at the midpoint.
• Adjusted EBITDA resulting in a loss between $82.0 million and $88.0 million.

About Hortonworks 

Hortonworks is the leader in emerging Open Enterprise Hadoop and develops, distributes and supports the only 100% open source Apache Hadoop data platform. Our team comprises the largest contingent of builders and architects within the Hadoop ecosystem who represent and lead the broader enterprise requirements within these communities.

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Source: Hortonworks