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Billion Dollar Unicorns: New Relic At A 52-Week High

By Kurt Osterberg · On December 1, 2017

According to Gartner, the Application Performance Management market grew 13% to $2.93 billion in 2016. With enterprise businesses continuing to rapidly adopt cloud technologies, the APM market is expected to reach $5.6 billion by 2020. The market is led by Dynatrace with 14.2% share followed by IBM with 8% share and New Relic (NYSE: NEWR) with 6.3% share.

Photo Credit: Danae Pollack/Flickr.com

New Relic’s Financials

New Relic’s second quarter revenues grew 33% to $84.7 million, ahead of the market’s forecast of $82.98 million. GAAP loss from operations was $(14.8) million or $(0.27) per share, compared to $(14.3) million or $(0.28) per share a year ago. Non-GAAP loss was $(3.5) million or $(0.06) per share compared to analyst estimate of ($0.09) per share.

Paid Business Accounts as of September 30, 2017 were approximately 15,900. New customers added during the quarter included 21st Century Fox, Absa Bank, Ancestry, Carnival Corporation, Dominion Enterprises, Dunkin Brands Group, East Carolina University, Expedia, Farm Credit Services of America, John Hancock Financial, Kurt Geiger Limited, MercadoLibre, Morningstar, MuleSoft, Nationwide Mutual Insurance Company, Norwegian Cruise Lines, Pearson, Procore Technologies, Red Hat, Reed Elsevier, Scripps Network, and Testo SE & Co. KGaA.

For the third quarter, New Relic expects revenue between $88.3 million and $89.8 million, representing y-o-y growth of between 30% and 32%. Non-GAAP loss from operations is expected between $(4) million or $(0.07) per share and $(5) million or $(0.09) per share. The Street was looking for revenues of $89.31 million and a ($0.07) loss per share.

New Relic forecast Full Year Fiscal 2018 revenue at $346.5 -$349.5 million, representing y-o-y growth of between 31% and 33%. Its revenue in fiscal 2017 was $263.5 million, up 45% compared with fiscal 2016. Non GAAP net loss is expected between $(13) million or $(0.21) per share and $(14) million or $(0.22) per share. The Street was looking for revenues of $348.8 million and a ($0.23) loss per share.