Following the announcement of Q3 fiscal 2022 results, New Relic Inc. (NEWR) fell down by a huge 23.11% in the after-hours. The company declared its fiscal 2022 third-quarter financial results on February 08, 2022, after the bell.
During the regular trading session, NEWR stock fluctuated between a high of $109.86 and a low of $105.71. The stock closed the session at $109.18 with a mild gain of 1.66% at 1.65 million shares. Consequent to the earnings release, the stock suffered a loss of $25.23 in the after hours. Hence, NEWR stock fell down to a value of $83.95 in the after-hours on Tuesday.
Founded in 2007, the software solutions provider, New Relic Inc. has a market capitalization of $7.03 billion. Its 65.41 million outstanding shares have declined by a slight 0.71% year to date. Comparatively, the stock was able to gain 63.42% last year.
NEWR: Q3 FY2022 Results
In the third quarter of fiscal 2022, the company generated revenue of $204 million, against $166 million in the year-ago period. Thus, marking an increase of 22% YOY. Analysts expected the company to report revenue of $200.3 million, hence, it surpassed the revenue estimates.
Moreover, NEWR reported a non-GAAP net loss of $0.18 per diluted share in Q3 FY2022, against $0.14 in the year-ago quarter. In comparison, the company was expected to report an adjusted net loss of $0.17 per share for the quarter, hence, missing the analysts’ estimate.
Additionally, the company ended the quarter with cash, cash equivalents, and short-term investments of $780 million. This compares to $784 million at the end of the previous quarter.
Future Guidance
For Q4 fiscal 2022, the company expects revenue in the range of $204 to $206 million with a diluted net loss of $0.19-$0.22 per share.
Furthermore, NEWR expects $784 to $786 million in revenue with a diluted net loss of $0.72-$0.75 per share for full-year fiscal 2022.
NEWR: Company News
On December 16, the company announced the appointment of Takeshi Numoto to its board of directors, effective December 14. Mr. Numoto is the Executive Vice President and Chief Marketing Officer for Microsoft’s Global Commercial Business.
On November 30, NEWR announced the appointment of Riya Shanmugam as Group Vice President of Global Alliances and Channels.
Conclusion
While the company reported a beat revenue, it missed the analysts’ earnings estimates for the quarter. Investors were expecting good things from the company but their expectations seem to have been shattered. Consequently, the stock took a harsh hit in the after-hours as investors were disappointed.
