Upgrade to SI Premium - Free Trial

HashiCorp Announces Fourth Quarter and Fiscal Year 2023 Financial Results

March 9, 2023 4:05 PM

SAN FRANCISCO, March 09, 2023 (GLOBE NEWSWIRE) -- HashiCorp, Inc. (NASDAQ: HCP), a leading provider of multi-cloud infrastructure automation software, today announced financial results for its fourth quarter and full fiscal year 2023, ended January 31, 2023.

"HashiCorp delivered solid results in the fourth quarter to close out a strong fiscal 2023," said Dave McJannet, CEO, HashiCorp. "This quarter we made continued progress with large customers, by landing new deals and expanding existing relationships, both driven by delivering new innovation to the market across our portfolio of products."

"I am pleased with our performance in the fourth quarter, on both the top and bottom line, as shown by our solid YoY revenue growth of 41%," said Navam Welihinda, CFO, HashiCorp. "We delivered strong operating leverage in fiscal 2023, and plan to continue to drive efficiencies in our business in fiscal 2024."

Fiscal 2023 Fourth Quarter Financial Results

Revenue: Total revenue was $135.8 million in the fourth quarter of fiscal 2023, up 41% from $96.5 million in the same period last year. Total revenue was $475.9 million for fiscal 2023, up 48% from $320.8 million for fiscal 2022.

Gross Profit: GAAP gross profit was $112.3 million in the fourth quarter of fiscal 2023, representing an 83% gross margin, compared to a GAAP gross profit of $69.8 million and a 72% gross margin in the same period last year. Non-GAAP gross profit was $115.9 million in the fourth quarter fiscal 2023, representing an 85% non-GAAP gross margin, compared to a non-GAAP gross profit of $83.7 million and an 87% non-GAAP gross margin in the same period last year.

Operating Loss: GAAP operating loss was $62.9 million in the fourth quarter of fiscal 2023, compared to GAAP operating loss of $227.3 million in the same period last year. Non-GAAP operating loss was $26.8 million in the fourth quarter of fiscal 2023, compared to a non-GAAP operating loss of $31.1 million in the same period last year.

Net Loss: GAAP net loss was $49.4 million in the fourth quarter of fiscal 2023, compared to a GAAP net loss of $227.7 million in the same period last year. Non-GAAP net loss was $13.2 million in the fourth quarter of fiscal 2023, compared to a non-GAAP net loss of $31.5 million in the same period last year.

Net Loss per Share: GAAP net loss per share was $0.26 based on 188.8 million weighted-average shares outstanding in the fourth quarter of fiscal 2023, compared to a GAAP net loss per share of $1.70 based on 133.6 million weighted-average shares outstanding in the same period last year. Non-GAAP net loss per share was $0.07 in the fourth quarter of fiscal 2023, compared to a non-GAAP net loss per share of $0.24 in the same period last year.

Remaining Performance Obligation (RPO) Total RPO was $647.1 million in the fourth quarter of fiscal 2023, up from $428.8 million in the same period last year. The current portion of GAAP RPO was $375.1 million at the end of the fourth quarter of fiscal 2023, up from $268.9 million at the end of the same period last year. Total non-GAAP RPO was $673.8 million at the end of the fourth quarter of fiscal 2023, up from $452.2 million at the end of the same period last year. The current portion of non-GAAP RPO was $397.7 million at the end of the fourth quarter of fiscal 2023, up from $289.2 million at the end of the same period last year.

Cash: Net cash provided by operating activities was $1.6 million in the fourth quarter of fiscal 2023, compared to $7.0 million used in operating activities in the same period last year. Cash and cash equivalents totaled $1,286.1 million at the end of the fourth quarter of fiscal 2023, compared to $1,355.8 million at the end of the same period last year.

Reconciliations of GAAP financial measures to the most comparable non-GAAP financial measures have been provided in the tables included in this release.

Fiscal 2023 Fourth Quarter and Recent Operating Highlights

Other Highlights

During the fourth quarter, HashiCorp continued to invest across its product portfolio and expand its ecosystem with new partnerships, including the following announcements:

Financial Outlook

For the first quarter of fiscal 2024, the Company currently expects:

For the full fiscal year 2024, the Company currently expects:

HashiCorp has not reconciled its expectations as to first quarter and fiscal year 2024 non-GAAP operating loss and non-GAAP earnings per share to the most directly comparable GAAP measures. Due to the limited public trading history and significant volatility in the price of HashiCorp’s common stock, certain items, which could be material, cannot be calculated without unreasonable efforts. In particular, the measures and effects of our stock-based compensation expense specific to our equity compensation awards and employer payroll tax-related items on employee stock transactions are directly impacted by the timing of employee stock transactions and unpredictable fluctuations in our stock price, which we expect to have a significant impact on our future GAAP financial results.

Conference Call Information

HashiCorp will host a conference call Thursday, March 9, 2023 at 2 p.m. PST to discuss HashiCorp’s financial results and financial guidance. The live conference call may be accessed by registering using the link available on our investor relations site at ir.hashicorp.com.

Upon registration, all telephone participants will receive the dial-in number along with a unique PIN that can be used to access the call. A webcast replay will be available following the conclusion of the live broadcast and will be accessible on HashiCorp’s investor relations site at ir.hashicorp.com.

About HashiCorp, Inc.

HashiCorp is a leader in multi-cloud infrastructure automation software. The HashiCorp software suite enables organizations to adopt consistent workflows and create a system of record for automating the cloud for infrastructure provisioning, security, networking, and application deployment. HashiCorp’s portfolio of products includes Vagrant™, Packer™, Terraform®, Vault™, Consul®, Nomad™, BoundaryTM, and Waypoint™. HashiCorp offers products as open source, enterprise, and as managed cloud services. The Company is headquartered in San Francisco, though most of HashiCorp employees work remotely, strategically distributed around the globe. For more information, visit hashicorp.com or follow HashiCorp on Twitter @HashiCorp.

All product and company names are trademarks or registered trademarks of their respective holders.

Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements within the meaning of the Private Securities Litigation Act of 1995, as amended, including, among others, statements about HashiCorp’s business strategy and efficiencies and HashiCorp’s financial outlook for the first quarter and full year of fiscal 2024. In some cases you can identify forward- looking statements because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms.

Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from current expectations and beliefs, including but not limited to risks and uncertainties related to market conditions, HashiCorp and its business as set forth in our filings with the Securities and Exchange Commission (“SEC”) pursuant to our Quarterly Report on Form 10-Q dated December 7, 2022 and our future reports that we may file from time to time with the SEC. These documents contain and identify important factors that could cause the actual results for HashiCorp to differ materially from those contained in HashiCorp’s forward-looking statements. Any forward-looking statements contained in this press release speak only as of the date hereof, and HashiCorp specifically disclaims any obligation to update any forward-looking statement, except as required by law.

Use of Non-GAAP Financial Measures

In addition to our results determined in accordance with GAAP, we have disclosed non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per share, non-GAAP free cash flow and total and current non-GAAP RPOs, which are all non-GAAP financial measures. We have provided tabular reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure at the end of this release.

We calculate non-GAAP gross profit as GAAP gross profit before amortization of amortization of stock-based compensation of capitalized internal-use software, and stock-based compensation expense included in cost of revenue.

We calculate non-GAAP gross margin as GAAP gross margin before the impact of stock-based compensation of capitalized internal-use software, and stock-based compensation expense included in cost of revenue as a percentage of revenue.

We calculate non-GAAP operating loss as GAAP operating loss before amortization of stock-based compensation of capitalized internal-use software, and stock-based compensation expense. We calculate non-GAAP net loss as GAAP net loss before amortization of stock-based compensation of capitalized internal-use software, and stock-based compensation expense.

We calculate non-GAAP net loss per share as non-GAAP net loss divided by weighted average shares outstanding.

We calculated non-GAAP free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized internal-use software costs. Non-GAAP free cash flow as a % of revenue is calculated as non-GAAP free cash flow divided by total revenue.

We calculate non-GAAP RPOs as RPOs plus customer deposits, which are refundable pre-paid amounts, based on the timing of when these customer deposits are expected to be recognized as revenue in future periods. The current portion of non-GAAP RPO represents the amount to be recognized as revenue over the next 12 months.

Our management team uses these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In particular, other companies may report non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share, non-GAAP free cash flow, non-GAAP RPOs or similarly titled measures but calculate them differently, which reduces their usefulness as comparative measures. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, as presented below. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of our website at https://ir.hashicorp.com.

HashiCorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts)
(unaudited)
Three Months EndedJanuary 31, Year EndedJanuary 31,
2023 2022 2023 2022
Revenue:
License$20,768 $15,654 $64,273 $47,504
Support 96,890 71,784 349,855 247,566
Cloud-hosted services 14,516 6,914 46,860 18,613
Subscription revenue 132,174 94,352 460,988 313,683
Professional services and other 3,614 2,171 14,901 7,086
Total revenue 135,788 96,523 475,889 320,769
Cost of revenue:
Cost of license 607 54 1,753 221
Cost of support 12,853 14,512 48,112 38,080
Cost of cloud-hosted services 6,211 6,308 22,589 14,031
Cost of subscription revenue 19,671 20,874 72,454 52,332
Cost of professional services and other 3,821 5,832 14,515 11,108
Total cost of revenue 23,492 26,706 86,969 63,440
Gross profit 112,296 69,817 388,920 257,329
Operating expenses:
Sales and marketing 95,028 127,124 355,826 269,504
Research and development 46,437 96,328 195,384 165,031
General and administrative 33,719 73,630 134,997 112,108
Total operating expenses 175,184 297,082 686,207 546,643
Loss from operations (62,888) (227,265) (297,287) (289,314)
Interest income 13,241 103 26,367 319
Other expenses, net 557 (31) (2,365) (157)
Loss before income taxes (49,090) (227,193) (273,285) (289,152)
Provision for income taxes 269 507 1,013 986
Net loss$(49,359) $(227,700) $(274,298) $(290,138)
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted$(0.26) $(1.70) $(1.47) $(3.48)
Weighted-average shares used to compute net loss per share attributable to Class A and Class B common stockholders, basic and diluted 188,803 133,611 186,029 83,277

HashiCorp, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except per share amounts)
(unaudited)
As of January 31,
2023 2022
Assets
Current assets
Cash and cash equivalents$1,286,134 $1,355,828
Accounts receivable, net of allowance of $13 and $20, respectively 162,369 126,812
Deferred contract acquisition costs 42,812 32,205
Prepaid expenses and other current assets 17,683 17,744
Total current assets 1,508,998 1,532,589
Property and equipment, net 24,594 15,897
Operating lease right-of-use assets 12,560 15,420
Deferred contract acquisition costs, non-current 81,286 57,126
Other assets, non-current 902 2,643
Total assets$1,628,340 $1,623,675
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable$12,450 14,267
Accrued expenses and other current liabilities 6,783 4,542
Accrued compensation and benefits 58,628 56,939
Operating lease liabilities 3,380 3,130
Deferred revenue 272,909 206,416
Customer deposits 26,699 23,383
Total current liabilities 380,849 308,677
Deferred revenue, non-current 29,335 16,873
Operating lease liabilities, non-current 12,093 15,483
Other liabilities, non-current 713 351
Total liabilities 422,990 341,384
Commitments and contingencies (note 8)
Stockholders’ equity
Class A common stock, par value of $0.000015 per share; 1,000,000 and 1,000,000 shares authorized as of January 31, 2023 and January 31, 2022, respectively; 88,823 and 30,597 shares issued and outstanding as of January 31, 2023 and January 31, 2022, respectively 1 1
Class B common stock, par value of $0.000015 per share; 200,000 and 200,000 shares authorized as of January 31, 2023 and January 31, 2022, respectively; 101,145 and 151,570 shares issued and outstanding as of January 31, 2023 and January 31, 2022, respectively 2 2
Additional paid-in capital 1,985,747 1,788,390
Accumulated deficit (780,400) (506,102)
Total stockholders’ equity 1,205,350 1,282,291
Total liabilities and stockholders’ equity$1,628,340 $1,623,675

HashiCorp, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
Year Ended January 31,
2023 2022
Cash flows from operating activities
Net loss$(274,298) $(290,138)
Adjustments to reconcile net loss to cash from operating activities:
Stock-based compensation expense, net of amounts capitalized 171,161 200,568
Depreciation and amortization expense 4,588 2,498
Non-cash operating lease cost 2,860 2,382
Other (1) 14
Changes in operating assets and liabilities:
Accounts receivable (35,556) (33,364)
Deferred contract acquisition costs (34,767) (39,086)
Prepaid expenses and other assets (61) (13,626)
Accounts payable (1,817) 8,464
Accrued expenses and other liabilities 2,609 (895)
Accrued compensation and benefits 1,689 32,379
Operating lease liabilities (3,140) (2,567)
Deferred revenue 78,955 75,992
Customer deposits 3,316 1,164
Net cash used in operating activities (84,462) (56,215)
Cash flows from investing activities
Purchases of property and equipment (252) (214)
Capitalized internal-use software (8,746) (6,382)
Net cash provided by (used in) investing activities (8,998) (6,596)
Cash flows from financing activities
Proceeds from initial public offering, net of underwriting discounts and commissions — 1,252,974
Taxes paid related to net share settlement of equity awards (248) (105,642)
Proceeds from issuance of common stock under employee stock purchase plan 17,197 —
Proceeds from issuance of common stock upon exercise of stock options 5,034 5,036
Payments of deferred offering costs — (4,522)
Net cash provided by financing activities 21,983 1,147,846
Net increase (decrease) in cash, cash equivalents, and restricted cash (71,477) 1,085,035
Cash, cash equivalents, and restricted cash beginning of period 1,357,611 272,576
Cash, cash equivalents, and restricted cash end of period$1,286,134 $1,357,611

HashiCorp, Inc.
RECONCILIATION OF GAAP TO NON-GAAP DATA
(amounts in thousands, except per share amounts and percentages)
(unaudited)
Three Months Ended January 31, Year Ended January 31,
2023 2022 2023 2022
Reconciliation of gross profit
GAAP gross profit$112,296 $69,817 $388,920 $257,329
Add: Amortization of stock-based compensation of capitalized internal-use software 330 371 988 371
Add: Stock-based compensation expense 3,249 13,502 13,801 13,922
Non-GAAP gross profit$115,875 $83,690 $403,709 $271,622
GAAP gross margin 83% 72% 82% 80%
Non-GAAP gross margin 85% 87% 85% 85%
Reconciliation of loss from operations
GAAP loss from operations$(62,888) $(227,265) $(297,287) $(289,314)
Add: Amortization of stock-based compensation of capitalized internal-use software 330 371 988 371
Add: Stock-based compensation expense 35,789 195,802 171,161 200,568
Non-GAAP loss from operations$(26,769) $(31,092) $(125,138) $(88,375)
GAAP operating margin(46)% (235)% (62)% (90)%
Non-GAAP operating margin(20)% (32)% (26)% (28)%

Three Months Ended January 31, Year Ended January 31,
2023 2022 2023 2022
Reconciliation of net loss and net loss per share
GAAP net loss$(49,359) $(227,700) $(274,298) $(290,138)
Add: Amortization of stock-based compensation of capitalized internal-use software 330 371 988 371
Add: Stock-based compensation expense 35,789 195,802 171,161 200,568
Non-GAAP net loss$(13,240) $(31,527) $(102,149) $(89,199)
GAAP net loss per share, basic and diluted$(0.26) $(1.70) $(1.47) $(3.48)
GAAP net loss per share, basic and diluted$(0.26) $(1.70) $(1.47) $(3.48)
Add: Amortization of stock-based compensation capitalized in software development costs — — 0.01 —
Add: Stock-based compensation expense 0.19 1.47 0.92 2.41
Add: Adjustment to total fully diluted earnings per share (0.01) (0.01) —
Non-GAAP net loss per share, basic and diluted$(0.07) $(0.24) $(0.55) $(1.07)
Weighted-average shares used in computing GAAP and Non-GAAP net loss per share, basic and diluted 188,803 133,611 186,029 83,277
Reconciliation of free cash flow
GAAP net cash used in operating activities$1,578 $(6,998) $(84,462) $(56,215)
Add: purchases of property and equipment (112) (128) (252) (214)
Add: capitalized internal-use software (2,572) (1,730) (8,746) (6,382)
Non-GAAP free cash flow$(1,106) $(8,856) $(93,460) $(62,811)
GAAP net cash used in operating activities as a % of revenue 1% (7)% (18)% (18)%
Non-GAAP free cash flow as a % of revenue(1)% (9)% (20)% (20)%
TTM Total Revenue$475,889 $320,769 $475,889 $320,769
TTM cash used in operating activities (84,462) (56,215) (84,462) (56,215)
TTM free cash flow (93,460) (62,811) (93,460) (62,811)
TTM cash used in operating activities as a % of revenue(18)% (18)% (18)% (18)%
TTM free cash flow as a % of revenue(20)% (20)% (20)% (20)%

HashiCorp, Inc.
RECONCILIATION OF GAAP TO NON-GAAP RPOS
(amounts in thousands)
(unaudited)
As of
January 31, 2023 January 31, 2022
GAAP RPOs
GAAP short-term RPOs$375,072 $268,911
GAAP long-term RPOs 271,992 159,923
Total GAAP RPOs$647,064 $428,834
Add:
Customer deposits
Customer deposits expected to be recognized within the next 12 months$22,657 $20,324
Customer deposits expected to be recognized after the next 12 months 4,042 3,059
Total customer deposits$26,699 $23,383
Non-GAAP RPOs
Non-GAAP short-term RPOs$397,729 $289,235
Non-GAAP long-term RPOs 276,034 162,982
Total Non-GAAP RPOs$673,763 $452,217

HashiCorp, Inc.
PRESENTATION OF KEY BUSINESS METRICS
(dollars in millions, except customers and percentages)
(unaudited)
Three Months Ended
January 31, 2023 October 31, 2022 July 31, 2022 April 30, 2022 January 31, 2022
Number of customers (as of end of period) 4,131 3,899 3,612 3,240 2,715
Number of customers equal or greater than $100,000 in ARR 798 760 734 704 655
GAAP Remaining Performance Obligations ($M)$647.1 $531.8 $476.0 $433.9 $428.8
Non-GAAP Remaining Performance Obligations ($M)$673.8 $553.4 $498.4 $457.6 $452.2
Quarterly subscription revenue from HCP ($M)$14.5 $12.9 $10.6 $8.8 $6.9
Trailing four quarters average Net Dollar Revenue Retention Rate 131% 134% 134% 133% 131%
Trailing twelve months cash used in operating activities as a % of revenue(18)% (21)% (26)% (20)% (18)%
Trailing twelve months Non-GAAP free cash flow as a % of revenue(20)% (23)% (28)% (22)% (20)%

HashiCorp, Inc.
PRESENTATION OF KEY HISTORICAL FINANCIAL DATA
(amounts in thousands)
(unaudited)
Three Months Ended
January 31, 2023 October 31, 2022 July 31, 2022 April 30, 2022 January 31, 2022
Revenue$ 135,788 $ 125,341 $ 113,863 $ 100,897 $ 96,523
GAAP net cash (used in) provided by operating activities$ 1,578 $ (15,171) $ (57,150) $ (13,719) $ (6,998)
Non-GAAP free cash flow$ (1,106) $ (17,897) $ (59,133) $ (15,324) $ (8,856)

Investor ContactAlex KurtzHashiCorp[email protected]

Media ContactKate LehmanHashiCorp[email protected]

Primary Logo

Source: HashiCorp, Inc.

Categories

Globe Newswire Press Releases

Next Articles