New Relic Intrinsic Stock Value – NEW RELIC Reports Impressive Earnings Results for First Quarter of FY2024
August 22, 2023
☀️Earnings Overview
NEW RELIC ($NYSE:NEWR) announced the earnings results for the first quarter of FY2024 on July 31 2023. Total revenue was reported at USD 242.6 million, representing a 12.1% increase from the same period in the prior year. Net income was USD -37.4 million, a decrease from the previous year’s -50.2 million.
Stock Price
The stock opened at $84.0 and closed at the same price, soaring by 13.4% from the prior closing price of $74.0. Looking ahead, the company has outlined an ambitious growth strategy that will focus on continued investments into research and development, as well as expanding its customer base. With these initiatives, NEW RELIC is well positioned to take advantage of the growing digital transformation market and drive further success in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for New Relic. More…
| Total Revenues | Net Income | Net Margin |
| 951.79 | -167.44 | -17.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for New Relic. More…
| Operations | Investing | Financing |
| 89.07 | 323.94 | -475.77 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for New Relic. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 891.28 | 511.18 | 5.03 |
Key Ratios Snapshot
Some of the financial key ratios for New Relic are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.3% | – | -15.4% |
| FCF Margin | ROE | ROA |
| 7.2% | -26.4% | -10.3% |
Analysis – New Relic Intrinsic Stock Value
We at GoodWhale recently conducted an analysis of NEW RELIC‘s financials. Using our proprietary Valuation Line, we estimated the intrinsic value of each NEW RELIC share to be around $77.2. Meanwhile, NEW RELIC stock is currently trading at $84.0. This implies that the stock is currently overvalued by 8.8%. More…
Peers
Its competitors are Sprout Social Inc, FalconStor Software Inc, and Centergistic Solutions Inc.
– Sprout Social Inc ($NASDAQ:SPT)
Sprout Social Inc is a provider of cloud-based social media marketing and engagement solutions. Its platform enables brands to manage social media communications, engage with customers and measure results. The company has a market capitalization of $3.06 billion as of 2022 and a return on equity of -17.92%. Sprout Social’s solutions are used by over 25,000 customers worldwide, including McDonald’s, Virgin, Toyota, and National Geographic.
– FalconStor Software Inc ($OTCPK:FALC)
FalconStor Software Inc is a computer software company that provides data protection, storage virtualization, and disaster recovery solutions. The company was founded in 2000 and is headquartered in New York, New York. As of 2022, FalconStor Software Inc has a market cap of 9.6M and a Return on Equity of 984.73%. The company’s products are used by organizations of all sizes to protect, store, and manage their data.
Summary
Investors have responded positively to New Relic‘s financial results for the first quarter of FY2024, with shares rising on the day of the company’s earnings announcement. Total revenue was up 12.1% year-on-year to USD 242.6 million, while net income decreased to USD -37.4 million from -50.2 million in same period last year. Despite these results showing an overall decrease in profitability, investors have responded positively to the increased revenue figure and the direction New Relic is heading in. As such, it could be an attractive stock for investors looking to benefit from the company’s growth potential.
