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Cloudera Inc. (CLDR) shares gave back earlier gains Monday after the cloud computing and data analytics group reached a deal with activist investor Carl Icahn to place two members on the board of directors. 

Ichan, who owns around 18.4% of the company via Icahn Enterprises (IEP) , will have two of his affiliate employees -- Nicholas Graziano and Jesse Lynn -- appointed to Cloudera's expanded ten-person board in exchange for limiting is stake in the group to under 20% and not seeking further board appointees for at least a year.  

"We are happy to have reached this agreement with Mr. Icahn and welcome Mr. Graziano and Mr. Lynn as members of our Board of Directors," said Cloudera's interim CEO Martin Cole. " Based on the strength of our product portfolio, our impressive enterprise customer base, and the potential of our forthcoming new Cloudera Data Platform, Carl has indicated that he believes Cloudera is undervalued -- and we fully agree."

"Together with our new directors, the Board will continue to oversee the execution of Cloudera's strategic plan and drive value for stockholders," he added.

Cloudera shares were marked 0.4% lower at $9.97 each, after rising more than 2% in pre-market trading, in a move that still leaves the stock some 36% lower since the start of the year.

Much of that decline followed the group's adjusted first quarter loss of 13 cents per share, which was published on June 6, and news that CEO  Tom Reilly would retire following weaker-than-expected profit guidance and ongoing challenges at the Palo Alto, California-based group.

"We note Cloudera has not named a CEO since the departure of Mr. Reilly was announced nearly two months ago, meaning Mr. Icahn can be closely involved in the search, especially with board representation," said DA Davidson analyst Rishi Jaluria in a recent client note. "We believe Cloudera is primarily looking externally for a new CEO, although we continue to believe Arun Murthy, Cloudera's Chief Product Officer, should take over as CEO."

"This path is dependent on customer adoption of CDP and how well Cloudera's new pure
open source pricing model works," he added.

Cloudera expects a loss of 8 cents to 11 cents a share on revenue of $180 million to $183 million for the three months ending in August. Analysts forecast a loss of 10 cents a share on revenue of $202.9 million.

The company said it expects fiscal-year revenue of $745 million to $765 million, well below analysts' estimates of $844.7 million, and an adjusted loss of 28 to 32 cents a share, narrower than Wall Street's calls for a loss of 35 cents.