Hortonworks very first cash flow positive
Hortonworks Inc. the big-data company keeps on its steady progress and this effort is maybe convincing enough for the skeptics who did not believe — that a pure open-source business model could actually work in today’s software market.
The company reported on 8 February 2018 that, a total revenue of $75 million in the 4th quarter of 2017, which is an increase by 44 percent from last year. The total revenue for 2017 is up by 42 percent from 2016 to almost $262 million.
Operating Cash-flow turns positive
Very significantly for investors, the company recorded for the first time that, it’s operating cash flow as $6.4 million. This means that Hortonworks’s shareholder investments are not going down the drain for the first time.
However, investors on Friday pulled down Hortonworks’ shares by 9 percent on a jerky day for the overall share market that eventually closed up about 1.4 percent. The reason may be an uncertain forecast for operating cash flow for 2018. Last year, the company still used operating cash for the year, but the shortfall was more than 60 percent to just less than $30 million from $82.4 million the previous year.
Revenue is going to increase
However, about the earnings of the company, Chief Financial Officer Scott Davidson’s voice seemed not fully confident. According to him, the company’s goal is to be positive for the year, without aiming for a definite number. He explained his comment by, citing investments the company wishes to make to pursue more business. Mr. Davidson said that the projection might be like this – Q1 will be positive, Q2 will see a dip towards negative, Q3 and Q4 earnings will to be flatter.
The company said it signed up 20 contracts of more than $1 million in the quarter, which is more than double than last year. The largest deal amount was $207,000 in 2017.
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