New Relic sees shares up by double digits after strong Q4

New Relic saw revenues climb 21 percent year-over-year in the fourth quarter, saying customers are prioritizing digital, the cloud and operational resiliency.

New Relic saw its shares increase by more than 15 percent in after-hours trading on Thursday after publishing strong fourth quarter results

Non-GAAP net income for the quarter was 14 cents a share on revenue of $160 million, up 21 percent year-over-year. 

Analysts were looking for earnings of 3 cents on revenue of $153.48 million. 

For the full fiscal 2020, non-GAAP net income per diluted share was 66 cents. Revenue increased 25 percent year-over-year to $600 million.

"I am proud of the team for a number of accomplishments in fiscal 2020 despite a variety of challenges," CEO Lew Cirne said in a statement. "We achieved 25% revenue growth, built out our New Relic One platform strategy, and added a number of remarkably talented leaders to our management team with the skills and experience to help us reach our intermediate and long-term goals. I am excited about our future; over the last two months, we have seen our customers prioritize digital, the cloud, and operational resiliency, and we are committed to helping them meet their goals with the strongest product lineup in our company's history."

Q4 annual recurring revenue (ARR) as of March 31 was $636 million. As much as 75 percent of ARR was from paid business accounts greater than $100,000. The company had a total of 993 paid business accounts greater than $100,000 as of March 31, compared with 858 a year prior.

For the first quarter of fiscal 2021, New Relic expects revenue between $158 million and $160 million.