Revenue on the rise but share price continues to fall for Hortonworks

Hortonworks reported its financial results for fourth quarter and full year 2015, with the company seeing subscription revenue growth of 146% year-over-year.

Highlights from the Hadoop software company’s financial results saw it post revenue of $37 million for the quarter, representing a 196% increase from the fourth quarter last year. Its gross profit for Q4 was $21.7 million compared to the $46.2 million loss it made last year.

The firm, which has just completed its first year as a public company, posted total GAAP revenue for the full financial year of $121.9 million, an increase of 165% compared to last year. Gross profit was $66.8 million compared to a gross loss of $34.8 million in 2014.

Billings for the company were up $52.1 million for the fourth quarter of 2015, a 63% increase over gross billings of $31.9% in the same period last year. For the full year the company saw a 90% increase over billings compared to the previous year, bringing in $165.9m compared to $87.1m.

Despite these positives the company reported a net loss of $179.1 million on its revenue of $121.9 million.

Recently the company has seen its share price fall after it announced the sale of 8.4 million additional shares in a follow-on offering to raise $100 million. The company priced the offering at $9.50 a share compared to the $16 pricing on the day of its IPO.

Following the announcement of the stock sale in January of this year, the open-source software distributor saw its shares drop from $15.58 to $10.44.

Since the company went public, its shares have dropped from $26.38 to $7.91. This however, isn’t something that is just affecting Hortonworks. Tableau recently lost half its value while Splunk lost a quarter of its value.

Rob Bearden, CEO and chairman of the board of directors of Hortonworks, said: "We more than doubled our customer base in 2015 and exited the year with over 800 customers. As evidenced by our 159% dollar-based net expansion rate over the trailing four quarters, we are excited to serve as the preferred IT partner during this transformational period in the data management industry."