New Relic tops Q1 expectations with revenue rising 11%
New Relic, makers of an IT observability platform, reported better-than-expected first quarter financial results on Tuesday. The company reported a Q1 non-GAAP net loss of 25 cents per share on revenue of $180 million, up 11% year-over-year.
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Analysts were expecting New Relic to report a loss of 37 cents per share on revenue of $172 million. Shares of New Relic were up as much as 5% after hours.
The company said it had 15,400 active customer accounts as of June 20. Of that total, approximately 862 are paid business accounts with contracts greater than $100,000. These accounts attributed around 76% of New Relic's quarterly revenue.
In a statement, CEO Bill Staples said the company is now focused on returning to revenue growth, following eight consecutive quarters of revenue deceleration.
"For eight quarters, revenue growth has decelerated while we've re-platformed our product front and back-end, pivoted toward our new platform pricing model and migrated existing customers to the consumption business model," said Staples. "I'm pleased to share today that in the first fiscal quarter we soundly beat expectations."
For the second quarter of fiscal 2022, New Relic expects revenue between $181 million and $183 million, with a non-GAAP net loss per share between 11 cents and 15 cents. Wall Street expects the company to report revenue of $173.9 million with non-GAAP net losses of 20 cents.