Cloudera plummets 43% after CEO abruptly departs and company cuts forecast

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Cloudera said late Wednesday that CEO Tom Reilly was leaving the company just five months after the merger with Hortonworks.

For Cloudera, the fundamental challenge is the same that it's been for years, which is that it's trying to make money selling an advanced version of free open-source software called Hadoop, a platform for storing and processing large amounts of complex and disparate data. The merger with Hortonworks in January was designed to pull together sales and marketing resources and cut down on costs the companies were spending to compete with one another.

When asked about MapR on Wednesday, Reilly told analysts that "we view their customer base as an opportunity for us and it is part of our growing pipeline." He added that the Hortonworks combination led to a period of uncertainty and, during that period, Cloudera saw increased competition from cloud providers.

Its pipeline isn't materializing fast enough for investors. Cloudera said it expects revenue for the full fiscal 2020 year of between $745 million and $765 million, down from aof $835 million to $855 million. Net loss will be 28 cents to 32 cents a share, the company said. Reilly is being replaced on a temporary basis by board member Martin Cole, a former Accenture executive, as Cloudera kicks off a search for a permanent CEO.

"Tom and the Board have always been committed to continually evaluating Cloudera's progress and ensuring that we are executing to drive long-term value. Accordingly, we have mutually agreed with Tom that this is the right time for a leadership transition," Cole said in a

 

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Cloudera plummets 40% after CEO abruptly departs and company cuts forecastCloudera said late Wednesday that CEO Tom Reilly was leaving the company just five months after the merger with Hortonworks.
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