New Relic Inc (NEWR) Reports Q2 2024 Earnings: Revenue Up 7% Year Over Year

A detailed look at New Relic's financial performance for the second quarter of fiscal year 2024

Oct 28, 2023

Summary

Total revenue for the quarter was $242.8 million, a 7% increase from $226.9 million in the same period last year.
GAAP operating margin was (8)%, while non-GAAP operating margin stood at 19%.
Net loss per share was $(0.34), compared to $(0.70) one year ago, while non-GAAP net income per share was $0.51, compared to $0.14 one year ago.
Cash, cash equivalents, and short-term investments were $436.6 million as of September 30, 2023.

On October 27, 2023, New Relic Inc (NEWR, Financial), a leading observability platform, announced its financial results for the second quarter of fiscal year 2024. The company reported a 7% year-over-year increase in total revenue, reaching $242.8 million, up from $226.9 million in the same period last year.

Financial Highlights

For the second quarter of fiscal year 2024, New Relic Inc (NEWR, Financial) reported a gross margin of 78.3%, compared to 71.5% one year ago. The non-GAAP gross margin was 79.7%, compared to 73.7% one year ago. The company's operating income showed a loss of $(20.5) million, compared to $(45.3) million one year ago. However, non-GAAP operating income was $45.2 million, compared to $6.9 million one year ago.

The company's operating margin was (8.4)%, compared to (20.0)% one year ago. Non-GAAP operating margin was 18.6%, compared to 3.0% one year ago. Fully diluted net loss per share was $(0.34), compared to $(0.70) one year ago, while non-GAAP fully diluted net income per share was $0.51, compared to $0.14 one year ago.

Business Highlights

New Relic Inc (NEWR, Financial) continued to enhance its AIOps capabilities and expand its Digital Experience Monitoring (DEM) capabilities. The company also published the 2023 Observability Forecast report, revealing that enterprises realize 2X ROI using observability solutions, with 41% receiving more than $1 million total annual value. New Relic earned a spot on the 2023 PEOPLE Companies that CareⓇ list for its comprehensive employee benefits and commitment to charitable work.

Future Outlook

Given the announcement made on July 31, 2023, regarding New Relic’s entry into a definitive agreement to be acquired by Francisco Partners and TPG, New Relic will not host an earnings conference call or provide financial guidance in conjunction with this earnings release. The company’s previously issued guidance for full year fiscal 2024 should no longer be relied upon.

For further detail and discussion of New Relic’s financial performance, please refer to New Relic’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, filed today with the SEC.

Explore the complete 8-K earnings release (here) from New Relic Inc for further details.

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