New Relic beats Q2 estimates
New Relic published its second quarter financial results on Tuesday, beating market estimates.
The company's non-GAAP net income per diluted share was 24 cents, compared to 20 cents per diluted share a year prior. Revenue came to $145.8 million, compared to $114.9 million a year ago.
Wall Street was looking for earnings of 15 cents per share on revenue of $143.4 million.
"We delivered a record number of platform innovations on top of the New Relic One observability platform during the second fiscal quarter, including New Relic Logs, New Relic Metrics, New Relic Traces, and programmability," CEO and founder Lew Cirne said in a statement. "The reaction to these capabilities during our global FutureStack events over the past two months has been incredibly positive. Field training and enablement is underway and we are committed to engaging our significant base and improving execution in the second half."
As of September 30, New Relic had 906 $100K+ paid business accounts, compared to 786 accounts a year earlier. Sixty-two percent of its annual recurring revenue is from enterprise paid business accounts.
For the third quarter, New Relic expects revenue between $148 million and $150 million.
Cornerstone OnDemand, the human capital management software provider published its third quarter results, beating market estimates.
Non-GAAP net income came to $20 million, or 31 cents per share, on revenue of $145 million.
Analysts were looking for an EPS of 27 cents on revenue of $142 million.
"During Q3, we continued to make progress towards many of our strategic and operational goals," founder and CEO Adam Miller said in a statement. "As the digital era continues to unfold, workforces need to be reskilled to ensure they remain relevant and productive. We believe we are extremely well positioned to help organizations of all sizes address this skills divide."
Subscription revenue for the third quarter came to $137.4 million, representing a 15.7 percent increase compared to the same period of the prior year.
For the fourth quater, Cornerstone expects revenue between $145 million and $147 million.
Five9, a cloud contact center software provider, also reported solid third quarter results.
Non-GAAP net income was $12.8 million, or 20 cents per diluted share, on revenue of $83.8 million.
Analysts were looking for an EPS of 15 cents on revenue of $78.78 million.
"More than ever before we are seeing that enterprises have learned to trust the cloud, and company leaders recognize that transforming their customer service experience is a necessity," CEO Rowan Trollope said in a statement. "As increasingly larger enterprises have begun to demand cloud contact centers, we have responded by hiring more engineers and scaling our team, resulting in a substantial increase in throughput and innovation."
For the fourth quarterFive9 expects revenue in the range of $86 to $87 million.