New Relic leads growth charge among next-gen enterprise vendors

New Relic, an application monitoring and analytics player, reported results along with Cornerstone OnDemand and HubSpot.

A trio of next-gen enterprise companies---New Relic, Cornerstone OnDemand and HubSpot-- reported strong quarterly growth with operating losses as they grow the business.

New Relic reported a fiscal first quarter net loss of $15.1 million, or 32 cents a share, on revenue of $38.1 million, up 69 percent from a year ago. Non-GAAP net loss for the first quarter was 21 cents a share.

Wall Street was expecting New Relic to report a loss of 24 cents a share on revenue of $35.5 million.

The application monitoring and analytics outfit also raised its outlook.

Also see: New Relic hires its first chief information officer | New Relic adds Docker monitoring, joins CloudFoundry Foundation

New Relic, which said it was winning deals from larger companies as well as its traditional base of smaller ones, projected third quarter revenue between $40.2 million and $41.2 million and a non-GAAP loss of 22 cents a share to 24 cents a share.

Wall Street was looking for second quarter revenue of $37.9 million and a non-GAAP loss of 24 cents a share.

For the fiscal year, New Relic said it expects revenue between $168 million and $171 million with a non-GAAP loss between 91 cents a share to 97 cents a share. Should New Relic hit its fiscal year revenue targets growth will be between 52 percent and 55 percent.

Cornerstone, which provides talent management cloud software, reported a second quarter net loss of $23.3 million, or 43 cents a share, on revenue of $82.6 million, up 34 percent from a year ago. The non-GAAP loss for the quarter was 16 cents a share.

Wall Street was looking for a second quarter non-GAAP loss of 10 cents a share on revenue of $80.2 million.

Bookings in the quarter were $91.3 million, up 30 percent from a year ago. CEO Adam Miller said the company saw good demand globally.

HubSpot, which makes inbound marketing and sales software, reported a second quarter net loss of $11.4 million, or 34 cents a share, on revenue of $42.9 million, up 58 percent from a year ago. The non-GAAP loss for the quarter was 17 cents a share.

Wall Street was looking for a non-GAAP loss of 21 cents a share on revenue of $40 million.

As for the outlook, HubSpot projected third quarter revenue between $44 million and $45 million with a non-GAAP loss between 32 cents a share and 34 cents a share.

Analysts expected HubSpot to report a third quarter non-GAAP loss of 35 cents a share on revenue of $42.4 million.

For 2015, HubSpot projected revenue of $171.7 million to $173.7 million with a non-GAAP loss of 92 cents a share to 88 cents a share.

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