Nov, 2001 : Loudcloud Shares Rise, Loss Narrows in 3Q

📅 November 22, 2001 - Loudcloud, Inc., (loudcloud.com), a managed servicesprovider, reported results for its third quarter ended Oct. 31, 2001, highlighted by substantial orders from new and existing enterprisecustomers, sequential revenue growth, and narrowed EBITDA and net losses.The company also announced improved earnings guidance for the full fiscalyear.

Total revenue increased to $14.3 million, a better than 200% improvementfrom the same quarter last year. Revenue beat the First Call consensusestimates of $14.1 million. Net loss decreased to $40.7 million, a 30%improvement from the same quarter last year and a 46% improvement from theprior quarter (including a restructuring charge in prior period.)Loudcloud's per-share loss narrowed to $0.62 beating the consensus analystestimate of $0.70 per share loss by $0.08. The third quarter per share lossrepresents a 70% improvement from the same quarter last year and a 48%improvement from the prior quarter.
The company's EBITDA loss narrowed to $24.9 million, a $3.0 millionimprovement from the same quarter last year and $3.7 million better than theprior quarter, driven by Loudcloud's ongoing cost-management efforts.
Momentum continued with enterprise customers: 90% of total contract bookingswere from enterprise clients, up from 70% in the second quarter. Revenuefrom enterprise customers represented 66% of total revenue, up from 60% inthe second quarter. Loudcloud signed new contracts with several major newand existing enterprises in the 3rd quarter including: adidas, Atriax,Boeing Autometric (the lead contractor for a U.S. Government agency);Cablevision, Consignia (the UK Post Office), e-Envoy (a British Governmentinitiative), Estee Lauder, Fox Sports, Knight Ridder, Qwest, Univision, andUSA Today.
Loudcloud ended the third quarter with approximately $140 million in cashand cash equivalents, including short-term investments and temporarilyrestricted cash, representing sufficient cash resources to fully fund itsbusiness plan.
"We are very pleased with Loudcloud's performance in the third quarter,"said Ben Horowitz, president and CEO. "We achieved increased bookings andsequential revenue growth in the face of a challenging economy and theevents of Sept. 11, while narrowing both our EBITDA and net losses. Recentsuccesses within the U.S. and U.K. governments, through our new contractswith Boeing Autometric and e-Envoy, underscore the strength of our serviceoffering and represent an exciting new opportunity for Loudcloud within thepublic sector. Further, with new services such as our expanded disasterrecovery offering, we continue to provide our customers and prospects withgreater flexibility in selecting the highest quality e-business managedservices."
For the fourth quarter of fiscal 2002, Loudcloud expects revenue willincrease to approximately $15.5-$15.7 million. The company expects to reporta fourth-quarter EBITDA loss of approximately $22-$23 million, a net loss ofapproximately $36-$37 million, and a loss per share of approximately$0.55-$0.56.
For the full fiscal year ending January 31, 2002, Loudcloud is maintainingits previous revenue guidance of $53-$57 million. Fourth quarter revenueguidance of approximately $15.5-$15.7 million implies full year revenuetowards the high end of that $53-$57 million range.
The company is guiding to a reduced EBITDA loss for the second consecutivequarter. Loudcloud expects EBITDA loss for the year of approximately$112-$113 million (excluding a 2nd quarter restructuring charge) compared toprevious guidance of $118-$120 million, and reiterates ending balance ofcash and cash equivalents, including short-term investments and temporarilyrestricted cash, of approximately $115 million.