hortonworks, inc. (hdp) · 2018. 2. 9. · hortonworks 3.0 hdp ipo dec 2014 first open source...

1 ©HortonworksInc.2011– 2016.AllRightsReserved

HORTONWORKS, INC. (HDP)GLOBALLY MANAGE, SECURE AND GOVERN ACROSS ALL DATA ASSETS

Q4andFullYear2017InvestorPresentationFebruary8,2018


SafeHarborStatementThis presentation is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer,solicitation or sale is unlawful.

This presentation contains statements that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the SecuritiesExchange Act of 1934, as amended, including, without limitation, statements regarding strategic growth drivers, market opportunity, and our or our management’s expectations, hopes, beliefs,intentions or strategies regarding the future, including our long-term financial model, revenue mix goals and anticipated future offerings. These forward-looking statements are based on ourcurrent expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we haveanticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results orperformance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: ourhistory of losses and limited operating history; our lack of history with our support subscription models or other pricing models; our ability to penetrate the existing market for datamanagement solutions; our ability to maintain successful relationships with our partners; our ability to effectively compete; the ability of our offerings to operate with third-party products andservices, including those of our partners; the continued development of open source technologies; and continued demand for our offerings. Should one or more of these risks or uncertaintiesmaterialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those in these forward-looking statements. All forward-looking statement aremade as of the date hereof, based on information available to us as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statements.

Customers who purchase our offerings should make sure their purchasing decisions are based on features that are currently available. Please be advised that any unreleased offerings orfeatures referenced in this presentation or other public statements are not currently available and may not be delivered on time or at all.

This presentation includes both GAAP and Non-GAAP financial measures. We believe certain Non-GAAP measures are helpful in understanding our past financial performance and our futureresults. Non-GAAP financial measures used in this presentation are not meant to be a substitute for comparable GAAP measures and are not intended to be considered in isolation from, insubstitute for, or superior to our GAAP results. Reconciliation of GAAP to Non-GAAP measures may be found in the financial tables in our Press Release dated February 8, 2018, available on theInvestor Relations page at www.hortonworks.com.

Throughout this presentation, we have rounded numbers as appropriate.


TheNewWayofBusinessIsFueledbyConnectedData

• Connectedcustomers,vehicles,devices

• Sociallycrowd-sourcedrequirements

• Digitaldesignandanalysis

• Digitalprototypesandtests(simulations)

• Connectedfactories,sensors,devices

• Human-roboticinteraction

• 3D-printingondemand

• Connectedtrucks,inventory

• Location,traffic,weather-awaredistribution

• Real-timeinventoryvisibility

• Dynamicrerouting

• Connectedcustomers,devices

• Omni- channeldemandsensing

• Real-timerecommendations

• Connectedassets• Remoteservicemonitoringanddelivery

• Predictivemaintenance• Overtheair(OTA)updates

DEVELOPMENT MANUFACTURING DISTRIBUTION MARKETING/SALES SERVICE


TheWinningHand:MasterthePerfectStormofTechandConsumerTrends

ArtificialIntelligence

CloudComputing

InternetofThings(IoT)andStream

Processing

Search&Recommendations

FrictionlessServices

ImmersiveAmbient


TheHortonworksOpportunityAtthecoreof~$1.9Tinmarketopportunityoverthenext5years

Cloud~$410B

Streaming~$1.65B

DataScience~$180B

BigData~$210B

IoT~$1.1T

1.0 2.0 3.0

5 © HortonworksInc.2011– 2018.AllRightsReserved

Sources:IDCWorldwideBigDataandAnalyticsSoftwareForecast,2017-2021,ForecastsContinuous/StreamingAnalyticsrevenuetobe$1.65Bby2021,July,2017;DataSciencePlatformmarketsizetoreach$183.7Bby2023,AlliedMarketResearch,DataSciencePlatformMarketbyTypeandEndUser:GlobalOpportunityand Forecast,2017-2023;IDCWorldwideSemiannualBigDataandAnalyticsSpendingGuideUpdate,ForecastsBigData&BusinessAnalyticsrevenuestobe$210Bby2020,PressReleaseMarch2017; GartnerWorldwidePublicCloudServicesRevenue,ForecastsPublicCloudServicesRevenuetobe$411.4Bby2020,PressReleaseOctober2017;IDCWorldwideSemiannualIoT SpendingGuideUpdate,ForecastsWorldwideIoT Spendingforecasttobe~$1.1Tby2021,PressReleaseDecember2017.


OurmissiontoBUILDANDEXTENDthefoundationcontinues…

Ã MakeHadoopanenterpriseviabledataplatformÃ Bringalldataundermanagement,allsources,alltypes,alltiersÃ ManageentirelifecycleofdataÃ EnableamoderndataarchitectureÃ Processhalfoftheworld’sdata


DATA-AT-RESTHADOOP1.0100%Open

YARNHADOOP2.0Enablemultipleworkloads

DATA-IN-MOTIONHDP&HDFOuttotheedge

CONNECTDATAPLATFORMSCloud/On-Prem

Performanceandcostcontrol

Hortonworks3.0

HDPIPODec2014FirstopensourcesoftwareIPOin10years

Inno

vatio

n

Hortonworks1.0Hadoopasanenterpriseviabledataplatform

ACONTINUOUSTRACKRECORDOFBUILDINGANDINNOVATING

FastestEnterpriseSoftwareCompanyto$100MinRevenue1

Hortonworks2.0Bringthistotheedgewithconnectedplatforms

EcosystemConsolidation

2011 2013 2015

2016

2017

2018HortonworksDataPlane Service

1Source: BarclaysBigDataDataReport,July10,2015


MULTIPLECLUSTERSANDSOURCES

MULTIHYBRID

HORTONWORKSDATAPLANESERVICE(DPS)MANAGE,GOVERN,SECURE

DATALIFECYCLEMANAGER

DATASTEWARDSTUDIO*

ISVSERVICES

*notyetavailable,comingsoon

EXTENSIBLESERVICES

IBMDSX*CLOUD-BREAK*

DATAANALYTICSSTUDIO*

CONNECTEDDATAPLATFORMS

HORTONWORKSDATAPLATFORM(HDP®)DATA-AT-REST

HORTONWORKSDATAFLOW(HDF™)DATA-IN-MOTION

MODERNDATAUSECASESEDW

OPTIMIZATION CYBERSECURITY DATASCIENCE ADVANCEDANALYTICS

PARTNERSOLUTIONS

IOT/STREAMINGANALYTICS

HORTONWORKSCONNECTION

ENTERPRISESUPPORT

PREMIERSUPPORT

EDUCATIONALSERVICES

PROFESSIONALSERVICES

COMMUNITYCONNECTION

HORTONWORKSPLATFORMSERVICES

OPERATIONALSERVICES

SMARTSENSE™

GlobalDataManagementWithHortonworks


HortonworksConnectionEnsuresSuccessofYourBigDataJourney

HortonworksSubscription,SmartSense,CommunityConnectionandServices

OperationalExcellencewithSmartSenseHortonworksSmartSense deliversproactivesupportthroughclusterinstrumentationandanalytics.

AlignedtoCustomerRequirementsAdvisoryboards,centerofexcellenceimplementations,digitalassets,professionalservicesandtrainingtoensureforcustomersuccess.

AnnualSubscriptionRelationshipAlignedtomodernconsumptiontrends,deliveringsupportandmaintenanceofmissioncriticalinfrastructure.

FlexSubscriptionRelationshipUniversal,usage-basedsupportsubscription,bothcloudandon-premises.

HortonworksConnection


HortonworksNourishestheCommunityandEcosystemHORTONWOR K S

C OMMUN I T Y C ONN E C T I O NHOR TONWOR K S PA R T N E RWOR K S

Ã CommunityQ&AresourcesÃ Articlesandcoderepos!Ã CommunityofBigData

developers

Ã Non-profitcommittedtosimplification&standardizationoftheBigDataecosystem

Ã AdvanceApache™Hadoop®withacommonreferencespecificationcalledODPi core

Ã EnablesmoreBigDataappsÃ Bringingadvancedstandardized

governancetomarket

Ã WorldclasspartnerprogramÃ Networkof2,300+partners

(ISVs,IHVs,SIs,etc.)providingbest-in-classmoderndatasolutions

HADOOP & B I G DATA E C O S Y S T EM


OpenSourceApproachesDriveRapidChangeandTransformation

MA X IMUM C OMMUN I T Y I N N O VAT I O N

T H E I N N O VAT I O N A D VA N TA G E

P RO P R I E TA R Y H A DOO P

T IM EIN

NOVATIO

N

O P E N C OMMUN I T Y

MinimizesRiskofvendorlock-inbydelivering100%Apacheopensourcetechnology

MaximizesCommunityInnovationwithhundredsofdevelopersacrosshundredsofcompanies

IntegratesSeamlesslythroughcommittedco-engineeringpartnershipswithotherleadingtechnologies


Financials

Retail,Food&Beverages

TechnologyMedia&Telecom

Automotive&Industrials

~70%+ oftheUSF100

50% oftheUSF100

70%+ oftheUSF100

80%+ oftheUSF100

HortonworksCustomersAchieveValueinEveryIndustry

Learnmoreathortonworks.com/customers


FinancialHighlightsSubscriptionBasedModel • $275.2millionoftotaldeferredrevenueasofDecember31,2017,up48%year-

over-year

StrongGrowthandCashPosition

RapidlyExpandingSubscriptionCustomerBase

LandandExpandGrowthStrategy

• RecordquarterlyGAAPrevenue,grew44%year-over-yearin4Q17to$75.0million• $72.5millionofcashandinvestments1asofDecember31,2017

• Over1,300supportsubscriptioncustomersincludingover60percentofFortune100andmorethanaquarterofFortuneGlobal500companies

• Over2,300partnersinthePartnerworks program

• 122%dollar-basednetexpansionrate(avg.fortrailing4qtrs)• 20deals>$1millioninQ42017,11ofwhichincludedHDFsignalingstrongproduct

expansioninsidelargedeals

InvestingforGrowth~$1.9trillionmarketopportunity

AttractiveLong-TermModel

• InvestinginsalesandR&Dtocapitalizeonanestimated~$210billionBigDatamarketby2020,a~$410billioncloudcomputingmarketby2020,a~$1.1trillionIoT marketby2021,a~$180billionDataSciencePlatformmarketby2023growingata~40%CAGRfrom2017-2023anda$1.65billionStreamingAnalyticsmarketby20212

• Drivingtotarget80%supportsubscriptionrevenuemix• Achievedoperatingcashflowof$6.4millioninthefourthquarterof2017

1Excludesaccesstoanundrawn$50.0millionline-of-creditfacility2 Seeslide5formarketsizereferences


$ 13.1 $ 18.1

$ 20.9 $ 25.6 $ 27.6

$ 31.0 $ 32.5 $ 35.6

$ 42.1 $ 45.8

$ 53.2 $ 57.8

$ 9.2

$ 11.9 $ 11.3

$ 11.9 $ 13.7

$ 12.6 $ 15.1

$ 16.4

$ 13.9

$ 16.0

$ 15.8

$ 17.2

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

SignificantRevenueGrowthandMomentumQuarterlyGAAPRevenue($mil)

2017

4Q17/4Q16SubscriptionGAAPRevenueGrowth:

63% YoY

SupportSubscriptionGAAPRevenue ProfessionalServicesGAAPRevenue


TRANSFORMBUSINESSMODELS

LEVERAGETHEVALUEOFDATA

EVERYBUSINESSISADATABUSINESS

15


Nasdaq:HDPReubenGallegos

VP,InvestorRelationsandCorporateDevelopmentrgallegos@hortonworks.com

Hortonworks,HDP,HDF,SmartSense,DataPlane Service,DPS,Cloudbreak,DataStewardStudio,DataAnalyticsStudioandDataLifecycleManagerareregisteredtrademarksortrademarksofHortonworks,Inc.anditssubsidiariesintheUnitedStatesandotherjurisdictions.Formoreinformation,pleasevisit www.hortonworks.com. Allothertrademarksarethepropertyoftheirrespectiveowners.

hortonworks, inc. (hdp) · 2018. 2. 9. · hortonworks 3.0 hdp ipo dec 2014 first open source...

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