Hortonworks Grows Revenue 85 Percent

Hortonworks (NASDAQ: HDP), a much-analyzed stock as the only pure-play Hadoop distributor that’s public, reported $41.3 million in revenue for the first quarter of 2016, an 85 percent increase over the same quarter last year.

Support subscription revenue during the quarter was up sharply from $13.1 million to $27.6 million, an increase of 110 percent compared to the first quarter of 2015, which was Hortonworks’ first quarter as a public company following an IPO in late 2014. Professional services revenue accounted for $13.7 million in revenue, a 49 percent increase.

While revenue was up, so were expenses for HDP. The company reported total expenses of $90.3 million, a 74 percent increase from the same quarter a year ago. Spending on sales and marketing accounted for $42.1 million, a 52 percent increase from a year ago, while R&D spending rose 48 percent to $22.2 million.

“We are pleased with our first quarter performance that was highlighted by an acceleration of support subscription billings, which grew 122 percent year-over-year,” said Rob Bearden, chief executive officer and chairman of the board of directors of Hortonworks, which is based in Santa Clara, California.

The company reported a net loss of $65.8 million, a 62 percent increase from the same quarter a year ago. On an adjusted EBITDA basis, the loss was $21.1 million, compared to a loss of $26.1 million for the first quarter of 2015. Net loss per share was $1.26 compare to $0.98 a year ago.

Despite the loss, the results were better than Wall Street analysts expected. Average projected revenue for HDP amounted to $39.5 million, according to Yahoo Finance.

Hortonworks has been under the gun from Wall Street since it filed plans with the SEC earlier this year to raise an additional $100 million with a secondary offering of stock.

The company’s stock closed today at $12.76, down significantly off its all-time high of $27.65 in August 2015 but up about 2.5 percent on the day. The December 2014 IPO raised about $100 million at $16 per share. The company has a market capitalization of about $740 million.

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