Investing.com - Cloudera plunged Thursday after the software developer reported fourth-quarter earnings that missed expectations and offered a gloomy outlook on future growth.
Its shares fell 17%.
The company announced in October that it was teaming up with competitor Hortonworks in a $5.2 billion merger to take out costs and pave the way to profitability. Cloudera CEO Tom Reilly said that while the two teams have combined, there is still "administrative and other developments in the works."
The software developer completed the merger with Hortonworks on Jan. 3 and said it would turn its attention to meeting demand from enterprise customers for an enterprise data cloud.
The integration process will likely take time and may prove short-term pain, but long-term gain for the company, according to Morgan Stanley (NYSE:MS).
"We see long-term potential, but remain equal weight (on Cloudera) given a major integration effort ahead," Morgan Stanley said.
For fiscal 2020, Cloudera guided a loss in the range of $0.36 to $0.32 per share on revenue of $835 million to $855 million.
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