New Relic (NEWR) Reports In-Line Q3 EPS, Revenues Beat; Offers 4Q EPS/Revenue Guidance Below Consensus

New Relic (NYSE: NEWR) reported Q3 EPS of ($0.14), in-line with the analyst estimate of ($0.14). Revenue for the quarter came in at $166 million versus the consensus estimate of $165.09 million.

Third Quarter Fiscal Year 2021 Financial Highlights:

• Revenue of $166 million, compared to $153 million for the third quarter of fiscal 2020.
• GAAP gross margin of 72% and non-GAAP gross margin of 74%.
• GAAP loss from operations was $(48.0) million, compared to $(24.2) million for the third quarter of fiscal 2020.
• Non-GAAP income (loss) from operations was $(8.4) million, compared to $3.0 million for the third quarter of fiscal 2020.
• GAAP net loss attributable to New Relic per basic share was $(0.88), compared to a loss of $(0.46) per basic share for the third quarter of fiscal 2020.
• Non-GAAP net income (loss) attributable to New Relic per diluted share was $(0.14), compared to $0.09 per diluted share for the third quarter of fiscal 2020.
• Cash used in operating activities was $(6.7) million and free cash flow was $(12.7) million for the third quarter of fiscal 2021.
• Cash, cash equivalents and short-term investments were $785 million at the end of the third quarter of fiscal 2021, compared with $840 million at the end of the second quarter of fiscal 2021.
• Remaining performance obligations were $648 million at the end of the third quarter of fiscal 2021, compared with $602 million at the end of the second quarter of fiscal 2021. This represents the aggregate unrecognized transaction price of remaining performance obligations as of each of December 31, 2020 and September 30, 2020.

“Our financial results for the third quarter reflect the positive early reception we’re seeing from our customers to the changes we’ve made across our go-to-market and platform strategies,” said Lew Cirne, CEO and founder, New Relic. “We are successfully migrating the majority of our larger customers onto the new model and engagement is increasing as evidenced by steady growth in data ingest, two positive signs of momentum from our customers.”

GUIDANCE:

New Relic sees Q4 2021 EPS of ($0.49)-($0.45), versus the consensus of ($0.12). New Relic sees Q4 2021 revenue of $166-167 million, versus the consensus of $170.81 million.

Fourth Quarter Fiscal 2021 Outlook:

• Revenue between $166 million and $167 million, representing year-over-year growth of approximately 4%.
• Non-GAAP loss from operations between $(29.0) million and $(31.0) million.
• Non-GAAP net loss attributable to New Relic per diluted share between $(0.45) and $(0.49).
• ARR of approximately $669 million, flat sequentially, and representing year-over-year growth of approximately 4%, compared to $642 million as of March 31, 2020.

For earnings history and earnings-related data on New Relic (NEWR) click here.

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