NEW RELIC Reports 12.1% Increase in Revenue for Q1 FY2024 with USD 242.6 Million
August 8, 2023
☀️Earnings Overview
On July 31, 2023, NEW RELIC ($NYSE:NEWR) revealed their first quarter of FY2024 earnings results, indicating an increase in total revenue of 12.1%, bringing the total to USD 242.6 million. Additionally, the company posted a net income of USD -37.4 million, signifying an improvement from the -50.2 million reported from the same period in the prior year.
Analysis
GoodWhale conducted an analysis of NEW RELIC’s financials and the Star Chart showed that the company is strong in growth, medium in assets, and weak in dividend and profitability. The company has a high health score of 8/10 with regard to its cashflows and debt, meaning it is capable of paying off debt and funding future operations. NEW RELIC is classified as a ‘cheetah’ – a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. This type of company may be suitable for investors who are willing to take on more risk for potential higher returns. Investors who are looking for less risk may want to consider other investment options. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for New Relic. More…
| Total Revenues | Net Income | Net Margin |
| 951.79 | -167.44 | -17.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for New Relic. More…
| Operations | Investing | Financing |
| 89.07 | 323.94 | -475.77 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for New Relic. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 891.28 | 511.18 | 5.03 |
Key Ratios Snapshot
Some of the financial key ratios for New Relic are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.3% | – | -15.4% |
| FCF Margin | ROE | ROA |
| 7.2% | -26.4% | -10.3% |
Peers
Its competitors are Sprout Social Inc, FalconStor Software Inc, and Centergistic Solutions Inc.
– Sprout Social Inc ($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
NEW RELIC reported strong first quarter earnings for FY2024, with total revenue increasing by 12.1% year-over-year to USD 242.6 million. Net income saw an improvement of -50.2 million in the same period last year to -37.4 million. This news caused the stock price to move up on the same day. Investors should consider these results when evaluating NEW RELIC as a potential investment opportunity. The company has shown an impressive growth rate over the past quarter and has potential for further growth in the future.
However, investors should be aware of the negative net income numbers and should consider any potential risks before investing.
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