Cloudera stock fell as much as 32% on Wednesday after the company said CEO Tom Reilly is retiring and leaving the company's board, effective July 31. The company also announced earnings.
Under Reilly, Cloudera went public in 2017 and completed a merger with competitor Hortonworks. Now 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 statement.
Reilly became Cloudera's CEO in 2013. Prior to that he was CEO of ArcSight, which HP bought in 2010, and CEO of Trigo, which IBM bought in 2004.
Also on Wednesday Cloudera reported earnings for the first quarter of its 2020 fiscal year, which ended on April 30. The company had a net loss of 13 cents per share, excluding certain items, on $187.47 million in revenue. Analysts had expected a loss of 23 cents per share, excluding certain items, on $188.4 million in revenue.
As for guidance, Cloudera said that for the fiscal second quarter it expects a loss of 8 cents to 11 cents per share, excluding certain items, on $180 to $183 million in revenue. Analysts polled by Refinitiv were looking for a loss of 9 cents per share, excluding certain items, on $203.1 million in revenue.
For the full fiscal year Cloudera is now forecasting a loss of 28 cents to 32 cents per share, excluding certain items, and revenue of $745 million to $765 million. The Refinitiv consensus estimates for the fiscal year were a loss of 36 cents per share, excluding certain items, and $834.3 million in revenue.
Cloudera has led the way in commercializing the Hadoop open-source software for storing and processing great supplies of different types of data. Last month the San Francisco Chronicle reported that a smaller competitor, MapR, was shutting down and laying off 122 people.
Intel has invested more than $700 million in Cloudera. Intel said it took a $278 million impairment charge because of an "other-than-temporary decline in the fair value" of its investment in the company. Intel's investment is now worth around $163 million.
The announcement of the merger with Hortonworks led to a period of uncertainty, and during that period Cloudera saw increased competition from cloud providers, Reilly told analysts on a Wednesday conference call.
Co-founder Mike Olson, Cloudera's chief strategy officer and former CEO, is also leaving the company, Reilly said.
Cloudera stock had fallen almost 49% in the past year prior to the announcement.
-- CNBC's Ari Levy contributed to this report.
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