Segment Information

12 Months Ended

Jan. 31, 2020

In January 2019, we completed our merger with Hortonworks. The combined company operates under the Cloudera name. We have integrated Hortonworks into our ongoing business operations and our chief operating decision maker, our chief executive officer, evaluates our financial information and resources and assesses the performance of these resources on a consolidated basis.

The results of the reportable segments are derived directly from our management reporting system and are based on our methods of internal reporting which are not necessarily in conformity with GAAP. Our management

measures the performance of each segment based on several metrics, including contribution margin, as defined below. Our management does not use asset information to assess performance and make decisions regarding allocation of resources. Therefore, depreciation and amortization expense are not allocated among segments.

Contribution margin is used, in part, to evaluate the performance of, and allocate resources to, each of the segments. Segment contribution margin includes segment revenue less the related cost of sales excluding certain operating expenses that are not allocated to segments because they are separately managed at the consolidated corporate level. These unallocated costs include stock-based compensation expense, amortization of certain acquired intangible assets, direct sales and marketing costs, research and development costs, corporate general and administrative costs, such as legal and accounting, interest income, interest expense, and other income and expense.

Financial information for each reportable segment was as follows (in thousands):


	Years Ended January 31,
	2020		2019		2018

Revenue:
Subscription	$	667,826	$	406,333	$	302,617
Services	126,365		73,608		69,676
Total revenue	$	794,191	$	479,941	$	372,293


	Years Ended January 31,
	2020		2019		2018

Contribution margin:
Subscription	$	577,899	$	356,214	$	258,771
Services	29,211		12,315		14,386
Total segment contribution margin	$	607,110	$	368,529	$	273,157

The reconciliation of segment financial information to our loss from operations is as follows (in thousands):


	Years Ended January 31,
	2020		2019		2018

Segment contribution margin	$	607,110	$	368,529	$	273,157
Amortization of acquired intangible assets	(80,024)		(9,129)		(3,723)
Stock-based compensation expense	(220,354)		(117,365)		(290,006)

Corporate costs, such as research and development, corporate general and administrative and other	(646,486)		(435,799)		(353,600)
Loss from operations	$	(339,754)	$	(193,764)	$	(374,172)

Sales outside of the United States represented approximately 38%, 34% and 30% of our total revenue for the years ended January 31, 2020, 2019 and 2018, respectively. No individual foreign country represented more than 10% of revenue in any period presented. All revenues from external customers are attributed to individual countries on an end-customer basis, based on domicile of the purchasing entity, if known, or the location of the customer’s headquarters if the specific purchasing entity within the customer is unknown.

As of January 31, 2020 and 2019, assets located outside the United States were 5% and 4% of total assets, respectively.