Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… ·...

29
CORPORATE OVERVIEW March 2019

Transcript of Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… ·...

Page 1: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

CORPORATE OVERVIEWMarch 2019

Page 2: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

2 © Cloudera, Inc. All rights reserved.

Statements in this press release that are not historical in nature are forward-looking statements that, within the meaning of the federal securities laws including the safe harbor provisions of the

Private Securities Litigation Reform Act of 1995, involve known and unknown risks and uncertainties. Words such as "may", "will", "expect", "intend", "plan", "believe", "seek", "could", "estimate",

"judgment", "targeting", "should", "anticipate", "goal" and variations of these words and similar expressions, are also intended to identify forward-looking statements. The forward-looking statements in

this press release address a variety of subjects, including anticipated benefits from the merger with Hortonworks, statements about our short-term and long-term goals and targets, expectations

regarding the acceptance by our enterprise customers of enterprise data cloud and our new offering, the Cloudera Data Platform, and our “Business Outlook” for our first quarter of fiscal 2020 and our

full year fiscal 2020 operating results. Readers are cautioned that actual results could differ materially from those implied by such forward-looking statements due to a variety of factors, including

global economic conditions, competitive pressures and pricing declines, intellectual property infringement claims, and other risks or uncertainties that are described under the caption “Risk Factors” in

our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC), and in our other SEC filings, including in a registration statement on Form S-4 containing a joint proxy

statement/prospectus of Cloudera and Hortonworks. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no

assurances that our expectations will be attained. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

We report all financial information required in accordance with U.S. generally accepted accounting principles (GAAP). To supplement our unaudited condensed consolidated financial statements

presented in accordance with GAAP, we use certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in

isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other

companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the results of our operations as determined in accordance with GAAP.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance

by excluding certain items that may not be indicative of our core business, operating results or future outlook. Management uses, and believes that investors benefit from referring to, these non-GAAP

financial measures in assessing our operating results, as well as when planning, forecasting and analyzing future periods. We use these non-GAAP financial measures in conjunction with traditional

GAAP measures to communicate with our board of directors concerning our financial performance. These non-GAAP financial measures also facilitate comparisons of our performance to prior

periods.

Please see the slides entitled GAAP to Non-GAAP Reconciliation at the end of this presentation for a reconciliation of each of these measures to the most directly comparable GAAP financial

measure. This reconciliation can also be found in the earnings press release issued March 13, 2019, which is available on www.cloudera.com or on the “Investor Relations” section of our website.

Unless otherwise noted, the information in this presentation is as of January 31, 2019.

Cloudera and associated marks are trademarks or registered trademarks of Cloudera, Inc. All other company and product names may be trademarks of their respective owners.

SAFE HARBOR STATEMENT

Page 3: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

3 © Cloudera, Inc. All rights reserved.

INVESTMENT HIGHLIGHTS

• The enterprise data cloud company

• Large addressable market – big data,

Streaming, IoT, Data Warehouse, ML/AI

• Innovation driving substantial competitive

advantage and extending category

leadership

• Vast and growing ecosystem of solution

and service provider partners

• Rapid growth and strong operating cash

flow generation

Customers

$100K+ software annual recurring revenue

recurring

FY19 subscription software revenue

FY19 revenue

34% FY19 subscription revenue growth

Q4FY19 Adj. ARR

24% adjusted annualized recurring revenue Y/Y growth

Notes:

1. Adjusted Annualized Recurring Revenue (Adj. ARR) equals Cloudera quarterly GAAP subscription revenue adjusted to (1) add Hortonworks’ quarterly results, (2) subtract

Hortonworks’ post-merger results (in the case of Q4 fiscal 2019 only), (3) reverse the effects of purchase price adjustments, and (4) subtract non-recurring partner revenue

and subscription revenue with certain related parties, multiplied by four quarters to annualize

2. Calculated by annualizing a customer’s subscription revenue in last month of the quarter, excluding certain related parties with a material interest in the company

(2)(1)

Page 4: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

4 © Cloudera, Inc. All rights reserved.

OPPORTUNITY

“AI, IoT and Augmented

Reality are about to

reinvent how industries

utilize data—and could

drive an era of productivity

growth in our cities, farms,

factories and hospitals.”

Morgan Stanley ResearchORGANIZATIONS STRUGGLE TO

REACH DATA MATURITY

Gartner

REALITY

Page 5: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

5 © Cloudera, Inc. All rights reserved.

the enterprise data cloud company

We believe that datacan make what is impossible today, possible tomorrow

We empower peopleto transform complex data into clear and actionable insights

We deliver an enterprise data cloud

for any data, anywhere, from the

Edge to AI

Page 6: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

6 © Cloudera, Inc. All rights reserved.

AN ENTERPRISE DATA CLOUD IS DIFFERENT THAN ANYTHING ENTERPRISES HAVE EVER EXPERIENCED

MULTI-

FUNCTION

ANALYTICS

Integrates data

management and

analytic experiences

from the Edge to AI

for data anywhere

HYBRID &

MULTI-CLOUD

Operates across all

major public clouds

and the private cloud

with a public cloud

experience

everywhere

SECURE &

GOVERNED

Meets enterprise

security, compliance,

migration and metadata

management needs

across all environments

OPEN

PLATFORM

Open source, open

integrations,

extensible, open to

multiple data stores

(S3, ADLS) & compute

architectures

Page 7: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

7 © Cloudera, Inc. All rights reserved.

WE EMPOWER PEOPLE TO TRANSFORM COMPLEX DATA INTO CLEAR AND ACTIONABLE INSIGHTS

CONNECT BUSINESS (IoT)GROW BUSINESS PROTECT BUSINESS

Marketing automation

Personalized &

relevancy marketing

Customer experience

management

Churn prevention &

customer retention

Predictive maintenance

Connected vehicles

Smart cities

Healthcare analytics

Industrial IoT

Compliance

Risk modeling & analysis

Financial crime prevention

Cybersecurity

Page 8: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

8 © Cloudera, Inc. All rights reserved.

POWERING DATA-DRIVEN CUSTOMERS

Modern Data Warehouse accelerates

processing of mission critical data

ML and AI power quality improvements

through defect identification

SDX delivers enhanced governance

with unified management across teams

GROW BUSINESS CONNECT BUSINESS (IOT) PROTECT BUSINESS

Page 9: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

9 © Cloudera, Inc. All rights reserved.

KEY INDUSTRY VERTICALS & USE CASES

BANKING

• Fraud detection

• Anti-money

laundering

• Spend analytics

• Barclays

• Bank of America

• Citi

HEALTHCARE /

PHARMA

• Patient care (IoT)

• Genomics research

• Regulatory

compliance

• GlaxoSmithKline

• Symphony Health

• Sharp Healthcare

TECHNOLOGY

• Customer

analytics

• Threat detection

• Predictive support

• Cisco

• Intel

• NetApp

TELCO

• Churn analysis

• Customer care

• Network

optimization

• Comcast

• British Telecom

• Bharti Airtel

MANUFACTURING

• Predictive

maintenance (IoT)

• Supply chain

optimization

• Remote monitoring

• Navistar

• Faurecia

• Sikorsky

USE CASES

CUSTOMERS

Page 10: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

10 © Cloudera, Inc. All rights reserved.

ADOPTION DRIVEN BY LARGE ENTERPRISES

TOP GLOBAL

TOP GLOBAL

TOP GLOBAL

GOVERNMENT CUSTOMERS

BANKING TELCO PHARMAPUBLIC

TOP GLOBAL

TECHNOLOGY

TOP GLOBAL

AUTOMOTIVE

Page 11: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

11 © Cloudera, Inc. All rights reserved.

LARGE AND GROWING MARKET

Source: IDC. Note: Transformative markets represented $12.7B in 2017 and $32.3B in 2022, approximately broken down into $14.3B for Cognitive/AI Systems and Content Analytics Software, $13.2B for Dynamic Data

Management Systems, $4.9B for Advanced and Predictive Analytics Software

2017 2022

$13B Dynamic data mgmt

$5B Advanced analytics

$14B Cognitive / AI

$13B

$32B

Relational /

Non-relational

DBMSs and

Data Warehouse

$51B

TAM

$83B

+ =21%CAGR

Page 12: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

12 © Cloudera, Inc. All rights reserved.

MARKET DEVELOPMENT & PHASES OF GROWTH

BIG DATA

TECH

DATA

PLATFORM

CIO

& Data Admins

ML, ANALYTICS

& CLOUD

LOB

& Data ScientistsIT early

adopters &

Developers

DIGITAL

TRANSFORMATIONpowered by data

C-suite &

Boards

Page 13: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

13 © Cloudera, Inc. All rights reserved.

KUBERNETES

& CONTAINERS

CLOUD

EXPERIENCE

COMPUTE &

STORAGE

STREAMING &

ML/AI

MAJOR ARCHITECTURE & TECHNOLOGY SHIFTS UNDERWAY

Easy to use, self-

service, on-demand,

elastic, consumption

Adoption as standard

operating environment

for flexibility and agility

Multi-function

analytics for the data-

driven enterprise

Separation in public

and private clouds for

increased

performance

Page 14: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

14 © Cloudera, Inc. All rights reserved.

ENTERPRISE DATA CLOUD ARCHITECTURE

• Multi-function analytics

• Hybrid and multi-cloud

• Secure and governed

• Open platform

IOT, INGEST &

STREAMING

DATA

WAREHOUSING

MANAGEMENT & SECURITY

ML / AI

DATA SCIENCE

PUBLIC CLOUDS

compute & storage

DATACENTER

compute & storage

Page 15: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

15 © Cloudera, Inc. All rights reserved.

CLOUDERA DATA PLATFORM

InfrastructurePrivate

CloudHybrid

CloudPublic

Multi-Cloud

Edge

Catalog | Schema | Migration | Security | GovernanceData

anywhere

• Public, private & hybrid

clouds

• Shared data experience

• Powered by open source

• Analytics from the Edge to AI

• Unified data control plane

DF-X DE-X DW-X OD-X ML-X

Analytic

experiences

Data Flow &

Streaming

Data

Engineering

Data

Warehouse

Operational

Database

Machine

Learning

Identity | Orchestration | Management | OperationsUnified

control plane

Altus

DataPlane

Open source software components

Page 16: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

16 © Cloudera, Inc. All rights reserved.

CLOUDERA DATA PLATFORMMachine learning and analytics for any data, anywhere, from the Edge to AI

EXPERIENCES

• 5 analytic workloads

• Containerized

services

• Easy, self-service

consumption

• Faster expansions

OPEN SOURCE

• Complete, familiar

open source

software

• For IT & complex

requirements

• Flexibility, control

and customization

• Protects renewals

SDX

• One model for

security, governance

& metadata

• Different users and

workloads work on

same data

• Key for de-coupled

compute & storage

MULTI & HYBRID

• 2 public clouds,

private and hybrid

• Support the clouds

customers want

• Workload portability

• Expands market

ALTUS DATAPLANE

• Single-pane of glass

• View and manage

across public and

private cloud

• Manage upgrades

from current HDP

and CDH platforms

Page 17: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

17 © Cloudera, Inc. All rights reserved.

CLOUDERA DATA PLATFORM

Altus DataPlane – control plane

DW-X

Open Source Software

ML-XOD-XDW-XDF-X

SDX – security, governance & metadata

Edge to AI

CDP – Private Cloud

Datacenter

Storage

Container

CloudPrivate

Altus DataPlane – control plane

DW-X

Open Source Software

ML-XOD-XDW-XDF-X

SDX – security, governance & metadata

Edge to AI

CDP – AWS & Azure

Storage ComputePublic

Multi-Cloud

DWDS/

MLDF OpDBDE

Altus DataPlane – control plane

SDX – security, governance & metadata

CDH & HDP

Storage &

Compute

SDX – security, governance & metadata

Altus DataPlane – control plane

Public cloud, private cloud, hybrid and CDH/HDP expansions

Page 18: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

18 © Cloudera, Inc. All rights reserved.

CLOUDERA SHARED DATA EXPERIENCECommon security, governance and metadata management from the Edge to AI

• Security: protects sensitive data with consistent controls for both

transient and recurring workloads

• Governance: enables safe self-service access to all relevant data

and increases compliance

• Catalog: defines and preserves structure and business context of

data for new applications and partner solutions

• Data lifecycle: aggregates a single copy of all data, provides

disaster recovery and data migration services

• Simplifies the development and deployment of multi-function

applications in the cloud without sacrificing centralized security,

governance, and metadata management traditionally associated

with on-premises deployments

Page 19: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

19 © Cloudera, Inc. All rights reserved.

WE DELIVER AN ENTERPRISE DATA CLOUD FOR ANY DATA, ANYWHERE, FROM THE EDGE TO AI

DataFlow &

Streaming

Data

Engineering

Data

Warehouse

Operational

Database

Machine

Learning

Catalog | Schema | Migration | Security | Governance

Hybrid

CloudPublic

Multi-Cloud

EdgeDatacenter

Enterprise grade

Secure, performant and compliant

Scalable

Elastic, cost-effective and lower TCO

Runs anywhere

Public cloud, on-premises, multi, hybrid

Page 20: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

20 © Cloudera, Inc. All rights reserved.

A real-time streaming data platform to collect, curate and analyze data-in-motion

CLOUDERA DATAFLOW

• Continuous data ingestion, transformation and routing from any

streaming source or IoT device using 250+ pre-built processors

• Edge data collection, processing and content routing of sensor data

from edge and IoT devices

• Real-time stream processing and content syndication for massive

IoT infrastructures supporting millions of messages per second

• Simplifies building streaming apps and analytics from the edge to

the enterprise data warehouse

• Deliver actionable insights with pattern matching and complex

event processing from real-time streams

Page 21: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

21 © Cloudera, Inc. All rights reserved.

CLOUDERA DATA WAREHOUSEData warehouse with a scale-up architecture that handles 50PB

• Bring the warehouse to the data with zero copy simplicity

• Use security policies with customer data - no proprietary stacks

• Apply enterprise governance to transient workloads

• Shared data experience, SDX, for analytic, ML & real-time workloads

• Ultimate hybrid choice - storage, compute & control

• Optimized for Azure & AWS

Page 22: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

22 © Cloudera, Inc. All rights reserved.

DATA SCIENCE & MACHINE

LEARNING HIERARCHY OF NEEDS

WHY IS DATA-DRIVEN SO DIFFICULT?

AI

MACHINE LEARNING

DATA SCIENCE

ANALYTICS

"BIG DATA"

• ML cannot be done without data science

• Data science cannot be done without analytics

• Analytics cannot be done without Big Data

• They are all dependent on each other,

and must operate on the same platform

Data-driven means getting Machine Learning & AI into production

Page 23: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

23 © Cloudera, Inc. All rights reserved.

MACHINE LEARNING FOR THE ENTERPRISE

• Open platform

• Open algorithms

• Team collaboration

• Enterprise ready

• Runs anywhere

DATA SCIENCE WORKBENCH

CLOUD ON-PREMISES

SPARK | IMPALA |

GPUs | CPUs

ADLSS3 HDFSSTORAGE

COMPUTE

ALGORITHMS

OPEN SOURCE &

VENDOR

ECOSYSTEMEXPLORATORY

ANALYSIS

SOLUTIONS | USE CASES | UXDATA APPS

KUDU

DATA SCIENCE WORKBENCHPRODUCTION

Page 24: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

24 © Cloudera, Inc. All rights reserved.

HOW CLOUDERA HELPS CUSTOMERS INDUSTRIALIZE AI

Manage pipelines + modelsDeploy models

Automate pipelines

Monitor performance

DEPLOYDEVELOPMake teams more productive

Explore data

Develop reports, pipelines, models

Collaborate with peers

TRAINScale resources efficiently

Train models

Tune parameters

Track performance

DELIVER THE PLATFORM TO ACCELERATE AI DEVELOPMENT AT SCALE, ANYWHERE

MANAGERun anywhere with a common architecture

Manage access and resources

Scale cost with usage

Page 25: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

25 © Cloudera, Inc. All rights reserved.

PARTNER ECOSYSTEM

ISVs & SOLUTIONS

CLOUD & PLATFORM

SYSTEM

INTEGRATORSRESELLERS

Strategic partnerships for

expanded reach, integrated

solutions and richer technical

and industry expertise

Page 26: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

26 © Cloudera, Inc. All rights reserved.

BENEFITTING FROM MULTIPLE GROWTH VECTORS

Page 27: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

27 © Cloudera, Inc. All rights reserved.

TOM REILLY

CEO

MIKE OLSON

CO-FOUNDER & CSO

AMR AWADALLAH

CO-FOUNDER & CTO

CHARLES

ZEDLEWSKI

GM, PRODUCTS and BUs

DAVID MIDDLER

CHIEF LEGAL

OFFICER

JIM FRANKOLA

CHIEF FINANCIAL

OFFICER

MICK HOLLISON

CHIEF MARKETING

OFFICER

BRITT SELLIN

SVP HUMAN

RESOURCES

HILARY MASON

GM MACHINE LEARNING

ANUPAM SINGH

GM ANALYTICS

VIKRAM MAKHIJA

GM DATA-IN-MOTION

CLOUDERA LEADERSHIP TEAM

ARUN C. MURTHY

CHIEF PRODUCT

OFFICER

SCOTT ARONSON

CHIEF REVENUE

OFFICER

Page 28: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

© Cloudera, Inc. All rights reserved.

Page 29: Cloudera Toolkit (Dark) 2018s22.q4cdn.com/194265214/files/doc_presentations/2019/03/27/Clou… · “AI, IoT and Augmented Reality are about to reinvent how industries utilize data—and

© Cloudera, Inc. All rights reserved.29 © Cloudera, Inc. All rights reserved.

ADJUSTED ANNUALIZED RECURRING REVENUE RECONCILIATION

(1) The adjustment amount related to Hortonworks represents the pre-merger Hortonworks quarterly subscription revenue for the three month period ended December 31, 2018

less the post-merger quarterly subscription revenue from Hortonworks from January 3, 2019 to January 31, 2019 included in the GAAP quarterly subscription revenue for the

fourth quarter of fiscal 2019. This revenue amount is presented under ASC 606

(2) The adjustment amount related to Hortonworks represents the pre-merger Hortonworks quarterly subscription revenue for the three month period ended December 31, 2017.

This revenue amount is presented under ASC 605 as Hortonworks adopted ASC 606 under the modified retrospective approach on January 1, 2018. The difference between

ASC 606 and ASC 605 for this period is not material