UPDATE: Needham & Company Downgrades New Relic (NEWR) to Hold
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Needham & Company analyst Jack Andrews downgraded New Relic (NYSE: NEWR) from Buy to Hold.
The analyst comments "We downgrade shares of New Relic to Hold (from Buy), following the company's 4QFY22 earnings release. Management took down its FY23 guidance below last quarter's commentary - with Revenue now expected to maintain current growth rates (rather than accelerate) and Operating Losses of ($25) Million to ($23) Million (versus previous expectations for modest full-year profitability). The lack of Revenue acceleration is concerning, as New Relic is struggling to attain its committed 25% "market growth." Meanwhile, there is a change in pricing, where previously simple Data Ingest pricing is now being re-calibrated, and the sales force needs to more actively drive sustained product-use to prevent seasonal disruption. Additionally, the retiring CFO removes potential for a Long-Term Financial Model at next week's Investor Day."
Shares of New Relic closed at $47.82 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades
Related EntitiesNeedham & Company, Earnings
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