Infrastructure automation firm HashiCorp posts solid earnings and revenue beat

Infrastructure automation firm HashiCorp posts solid earnings and revenue beat

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HashiCorp Inc.’s stock was trending higher today in extended trading after the infrastructure-as-code technology provider reported earnings and revenue that beat Wall Street’s expectations and guided for more of the same in the coming quarter and full year.

The company reported a fourth quarter net loss of $49.4 million, down from a $227.7 million loss recorded in the same period one year earlier. Its loss before certain costs such as stock compensation came to 7 cents per share, ahead of Wall Street’s target of a 22 cent-per-share loss. Revenue rose 41% from a year ago to $135.8 million, well ahead of the $124.2 million forecast.

For the full year, HashiCorp reported total revenue of $475.9 million, up 48% from the previous fiscal year.

HashiCorp Chief Executive Dave McJannet (pictured) said the company delivered “solid results” to close out a strong fiscal year. “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,” he said.

HashiCorp sells automation tools for enterprise information technology infrastructure. Its main product, Terraform, enables “infrastructure-as-code”, where system administrators write scripts to automate the configuration of cloud and on-premises systems. It makes life much simpler than the old way of doing things, which involved navigating various consoles to configure systems manually. Terraform eliminated the need to configure and adjust hundreds of settings manually, helping admins save hours of work.

It’s an offering that is proving to be incredibly popular. HashiCorp said it ended the quarter with 4,131 customers, up from 2,715 one year earlier. Of those, 798 now deliver more than $100,000 in annual recurring revenue, up from 760 a year ago, representing 89% of HashiCorp’s total revenue base.

HashiCorp said its subscription revenue during the quarter topped $14.5 million at the end of the quarter, rising from $6.9 million one year earlier. In addition, it reported a net dollar retention rate of 131%, unchanged from a year ago. NRR is a key metric that measures how much revenue a company is able to squeeze from its existing customer base.

For the first quarter of fiscal 2024, HashiCorp said it sees a loss of between 15 cents and 13 cents per share on sales of $132 million to $134 million. That’s an optimistic forecast, with Wall Street looking for a loss of 19 cents per share on lower revenue of $128.9 million.

For the full year, HashiCorp said it sees losses coming to 40 cents to 38 cents per share, with revenue at $591 million to $595 million. Wall Street is looking for a total loss of 66 cents per share on $593.2 million in revenue.

HashiCorp’s stock gained almost 2% on the report, having declined just over 5% during the regular trading session.

Photo: HashiCorp/YouTube

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