New Relic Stock Slides Post Q4 Results, Misses On Profit Estimate, Announces CFO Transition

  • New Relic Inc NEWR reported fourth-quarter revenue growth of 19.2% year-over-year to $205.75 million, beating the consensus of $204.52 million.
  • The gross margin expanded by 200 bps to 68.9%. The adjusted gross margin was 71%.
  • Loss from operations for Q4 was $55.75 million, compared to $54.31 million in $Q21.
  • Adjusted EPS was $0.24, below the consensus of $0.21.
  • Net cash provided by operating activities for FY22 totaled $3.63 million, compared to $69.87 million a year ago. Free cash outflow was $14.82 million.
  • Cash, cash equivalents, and short-term investments were $829 million at the end of the quarter.
  • Separately, New Relic announced that Mark Sachleben has decided to retire from his role as chief financial officer. Sachleben will remain in his role until his successor is named and the company has completed the successful transition.
  • 1Q23 outlook: New Relic expects revenue of $212 million and $214 million, non-GAAP loss from operations of between $23 million and $25 million.
  • The company expects non-GAAP EPS of $0.35 and $0.38.
  • FY23 Outlook: The company expects revenue of $920 million and $930 million, non-GAAP loss from operations of between $20 million and $25 million.
  • It expects non-GAAP ESP of $0.31 and $0.37 versus consensus of $0.10.
  • NEWR Price Action: New Relic shares are trading lower by 9.24% at $43.40 during the post-market session on Thursday.
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