New Relic Product Upgrades Deliver Growth

 

According to a recent report, the global Application Performance Management (APM) industry is expected to grow at 15% CAGR to reach $6.7 billion by 2025. New Relic (NYSE: NEWR) recently announced its quarterly results that mirrored these growth expectations.

Photo Credit: Danae Pollack/Flickr.com

New Relic’s Financials

For the first quarter, New Relic’s revenues grew 15% to $163 million, ahead of the analysts’ estimates of $159.7 million. GAAP loss grew from $16.9 million a year ago to $26.1 million. Non-GAAP income from operations was $7.6 million compared with $7.4 million a year ago. Adjusted non-GAAP net income earnings of $0.15 per share surpassed the market’s forecast of $0.03 per share.

Among key metrics, customers with more than $100,000 in revenues grew to 1,025 from 881 a year ago. 76% of ARR was from Enterprise Paid Business Accounts compared with 70% a year ago. Dollar-Based Net Expansion Rate for the third quarter was 100%, compared to 109% last year.

For the second quarter, New Relic forecast revenues of $163-$164 million with non-GAAP net loss per diluted share of $0.03-$0.02. The Street was looking for revenues of $155.06 million for the quarter with an EPS of $0.08 per share.

New Relic’s Product Expansion

Last quarter, New Relic continued to expand its market presence through product upgrades. It delivered several updates to New Relic One. The upgrade includes Telemetry Data Platform that can collect, visualize, and alert on all types of application and infrastructure data at petabyte scale; full-stack observability to easily analyze and troubleshoot the entire software stack across APM and applied intelligence to detect, understand, and resolve incidents faster. Its comprehensive APM capabilities and a fully managed SaaS system will help it drive improvements in customer and engineer experience. It also announced the simplification of its portfolio by reducing from 11 SKUs to only three comprehensive products on one platform.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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