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HORTONWORKS, INC. (HDP)GLOBALLY MANAGE, SECURE AND GOVERN ACROSS ALL DATA ASSETS
Q4andFullYear2017InvestorPresentationFebruary8,2018
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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.
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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
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TheWinningHand:MasterthePerfectStormofTechandConsumerTrends
ArtificialIntelligence
CloudComputing
InternetofThings(IoT)andStream
Processing
Search&Recommendations
FrictionlessServices
ImmersiveAmbient
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TheHortonworksOpportunityAtthecoreof~$1.9Tinmarketopportunityoverthenext5years
Cloud~$410B
Streaming~$1.65B
DataScience~$180B
BigData~$210B
IoT~$1.1T
1.0 2.0 3.0
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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.
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OurmissiontoBUILDANDEXTENDthefoundationcontinues…
à MakeHadoopanenterpriseviabledataplatformà Bringalldataundermanagement,allsources,alltypes,alltiersà Manageentirelifecycleofdataà Enableamoderndataarchitectureà Processhalfoftheworld’sdata
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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
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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
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HortonworksConnectionEnsuresSuccessofYourBigDataJourney
HortonworksSubscription,SmartSense,CommunityConnectionandServices
OperationalExcellencewithSmartSenseHortonworksSmartSense deliversproactivesupportthroughclusterinstrumentationandanalytics.
AlignedtoCustomerRequirementsAdvisoryboards,centerofexcellenceimplementations,digitalassets,professionalservicesandtrainingtoensureforcustomersuccess.
AnnualSubscriptionRelationshipAlignedtomodernconsumptiontrends,deliveringsupportandmaintenanceofmissioncriticalinfrastructure.
FlexSubscriptionRelationshipUniversal,usage-basedsupportsubscription,bothcloudandon-premises.
HortonworksConnection
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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
à CommunityQ&Aresourcesà Articlesandcoderepos!à CommunityofBigData
developers
à Non-profitcommittedtosimplification&standardizationoftheBigDataecosystem
à AdvanceApache™Hadoop®withacommonreferencespecificationcalledODPi core
à EnablesmoreBigDataappsà Bringingadvancedstandardized
governancetomarket
à Worldclasspartnerprogramà Networkof2,300+partners
(ISVs,IHVs,SIs,etc.)providingbest-in-classmoderndatasolutions
HADOOP & B I G DATA E C O S Y S T EM
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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
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Financials
Retail,Food&Beverages
TechnologyMedia&Telecom
Automotive&Industrials
~70%+ oftheUSF100
50% oftheUSF100
70%+ oftheUSF100
80%+ oftheUSF100
HortonworksCustomersAchieveValueinEveryIndustry
Learnmoreathortonworks.com/customers
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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$50.0millionline-of-creditfacility2 Seeslide5formarketsizereferences
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$ 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
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TRANSFORMBUSINESSMODELS
LEVERAGETHEVALUEOFDATA
EVERYBUSINESSISADATABUSINESS
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Nasdaq:HDPReubenGallegos
VP,InvestorRelationsandCorporateDevelopmentrgallegos@hortonworks.com
Hortonworks,HDP,HDF,SmartSense,DataPlane Service,DPS,Cloudbreak,DataStewardStudio,DataAnalyticsStudioandDataLifecycleManagerareregisteredtrademarksortrademarksofHortonworks,Inc.anditssubsidiariesintheUnitedStatesandotherjurisdictions.Formoreinformation,pleasevisit www.hortonworks.com. Allothertrademarksarethepropertyoftheirrespectiveowners.