New Relic shares fall on weak Q2 outlook
New Relic published its first quarter fiscal 2020 financal results on Tuesday, beating earnings expectations and reporting revenue in line with estimates. However, shares were down in after-hours trading on a weak Q2 outlook.
The company reported non-GAAP net income per share of 19 cents on revenue of $141 million, compared with $108.2 million in sales for Q1 fiscal 2019.
Wall Street was looking for earnings of 9 cents per share on revenue of $141.64 million.
"We launched New Relic One, released monitoring for AWS Lambda, and finalized operating model enhancements to product and sales organizations during the first quarter," CEO and founder Lew Cirne said in a statement. "Navigating these changes proved challenging and impacted our Q1 results. However, we believe that these strategic initiatives will enable us to drive sustainable growth by delivering incredible products that delight our customers."
New Relic provides DevOps and application monitoring software. New Relic One, the platform launched in Q1, visualizes data and maps complex environments.
The company reported 881 paid business accounts over $100,000 for the quarter, compared wtih 748 a year prior.
For Q2, New Relic expects non-GAAP net income per share between 14 cents and 16 cents on revenue between $143 million and $145 million.
Wall Street is expecting earnings of 12 cents per share on revenue $148.56 million.
For the full fiscal 2020 year, the company expects revenue between $600 million and $607 million.