hortonworks

Hortonworks Picks Up 3% After Reporting Better-Than-Expected Q3 Earnings, Strong Guidance

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Following the bell, Hortonworks announced its third quarter financial performance including adjusted earnings per share of negative $0.74 and revenue of $33.1 million. Investors had expected the company to lose $0.83 per share, off revenue of $30.69 million.

Up a mote in regular trading, the Hadoop shop is up several points in after-hours trading following its earnings beat.

The company’s 159 percent revenue growth — compared to the comparable year-ago quarter — came at a steep cost. Here’s the official verbiage:

Operating Loss: GAAP operating loss for the third quarter totaled $44.4 million, compared to a loss of $37.4 million during the third quarter last year. Non-GAAP operating loss for the third quarter was $32.5 million, compared to a loss of $31.1 million for the same period last year.

Still, the company’s massive revenue gain, compared to its loss increase, is favorable. To be clear, its non-GAAP loss increase is over a million dollars. Hortonworks still loses too much money. That’s clear enough, but the firm can say that, at a minimum, its revenue growth shows that it’s not entirely a drunken midshipman when it comes to spend.

Here’s what is coming up for Hortonworks in its current quarter [Non-GAAP figures as presented by the firm]:

For the fourth quarter of 2015, we expect:

  • Total revenue between $32.0 million and $34.0 million, representing year-over-year growth of 98 percent at the midpoint.

  • Gross billings between $52.0 million and $54.0 million, representing year-over-year growth of 66 percent at the midpoint.

  • Adjusted EBITDA resulting in a loss between $17.5 million and $19.5 million.

Analysts had expected Hortonworks to generate $33.22 million in revenue. The company’s guidance suggests a coming beat, though street predictions could shift.

Better-than-expected earnings and a bolstered share price are not bad marks for Hortonworks.