Tom Reilly, CEO, Cloudera is exiting the company

With the news of Tom Reily, CEO- Cloudera Inc. leaving the company news got announced the share price has tumbled 40 percent, Martin Cole, chairman Cloudera will take over as interim CEO while the board searches for a permanent replacement. Reilly’s last day will be July 31 and reached a new all-time low .The share closed at $5.30 ,which is marginally  less than a year ago, they were trading above $19 per share.

Tom joined Cloudera in 2013 and served as the CEO of Trigo Technologies, which was acquired by IBM, and the CEO of ArcSight, which went public and was acquired by HP. In both cases Tom was part of the company and chosen to stay after the acquisitions, and served in executive roles at IBM.

Then Cloudera raised more than $1 billion in capital before going public in 2017. In January, the company finalized its merger with Palo Alto-based Hortonworks, which was supposed to create a company worth $5.2 billion.

Mr. Reilly’s resignation is not the result of any disagreement with the Company on any matter relating to its operations, policies or practices,” Cloudera said in an SEC filing. Rather, Reilly and the board “mutually agreed” it was time for him to resign, Cloudera said in a statement to reporters.

Cloudera shares plunged after the company said it would likely end fiscal year 2020 with sales of $745 million to $765 million, far short of the $834.3 million that analysts had expected. Reilly blamed the projected shortfall on customers who are waiting for the next version of Cloudera’s cloud-based data management platform before upgrading.

“Our enterprise customers are excited about extending their analytic workloads to the public cloud through Cloudera Data Platform, which will be available this summer,” Reilly said in a statement. “While some customers in the first quarter elected to postpone renewal and expansion of their agreements in anticipation of the new platform’s release, affecting our full year outlook, this customer feedback and enthusiasm validates demand for enterprise data cloud solutions in our target market.”

Reilly will earn a severance payment of $1 million in cash, equivalent to what he would have been paid in salary and bonuses over the next 12 months. The company will pay for his health insurance premiums for the next 24 months, and give him all of his stock options and unvested shares.