Press Release: New Relic Announces Third Quarter Fiscal Year 2021 Results
New Relic Announces Third Quarter Fiscal Year 2021 Results
Third quarter revenue increased 9% year-over-year to $166 million
Quarterly GAAP operating loss of $(48.0) million; Non-GAAP operating loss of $(8.4) million
New Relic, Inc. (NYSE: NEWR), a leader in observability, today announced financial results for the third quarter of fiscal year 2021.
"Our financial results for the third quarter reflect the positive early reception we're seeing from our customers to the changes we've made across our go-to-market and platform strategies," said Lew Cirne, CEO and founder, New Relic. "We are successfully migrating the majority of our larger customers onto the new model and engagement is increasing as evidenced by steady growth in data ingest, two positive signs of momentum from our customers."
Third Quarter Fiscal Year 2021 Financial Highlights:
Key Operating Metrics*:
* In the fourth quarter of fiscal 2020, we adjusted the way we define ARR to include partner revenue and revenue from support subscriptions. This change results in immaterial differences in the presentation of some numbers in the chart above compared to our disclosures in historical filings. Please refer to our Annual Report on Form 10-K for the fiscal year ended March 31, 2020 for our definition of ARR and the differences between these disclosures.
Recent Business Highlights:
New Relic has not reconciled its expectations as to non-GAAP income (loss) from operations or non-GAAP net income (loss) per diluted share to their most directly comparable GAAP measures as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense, lawsuit litigation cost and other expense, employer payroll taxes on equity incentive plans and gain or loss from lease modification. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to New Relic's results computed in accordance with GAAP.
Conference Call and Investor Letter Details:
About New Relic
The world's best engineering teams rely on New Relic to visualize, analyze and troubleshoot their software. New Relic One is the most powerful cloud-based observability platform built to help companies create more perfect software. Learn why developers trust New Relic for improved uptime and performance, greater scale and efficiency, and accelerated time to market at newrelic.com.
This press release and the earnings call referencing this press release contain "forward-looking" statements, as that term is defined under the federal securities laws, including but not limited to statements regarding: New Relic's future financial performance, including its outlook on financial results for the fourth quarter of fiscal 2021, such as revenue, non-GAAP loss from operations, non-GAAP net loss attributable to New Relic per diluted share, ARR, market opportunities, the value proposition behind the reimagined New Relic One platform, the ongoing success of our entitlements program and overall growth in data ingest, our continued rollout of product enhancements and layering of new functionalities into existing products, expectations of continued refinement of New Relic's product and sales execution, expectations that the recent acquisition of Pixie Labs will accelerate Kubernetes adoption and allow New Relic to be a primary beneficiary of incremental growth in that space, expectations that the reimagined New Relic One platform and move to a consumption pricing model will accelerate demand and change the way customers purchase and consume software, help New Relic step up in growth, shift New Relic's existing business metrics to other metrics better suited to tracking the consumption model, and increase New Relic's presence and standing in the observability market, and any expected financial impacts and increase in customer usage, adoption and aggregate spend as a result of these changes. These forward-looking statements are based on New Relic's current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause New Relic's actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to, New Relic's ability to determine optimal prices for its products and the potential challenges presented by New Relic's evolving pricing models; the effect of the COVID-19 pandemic on New Relic's business and on global economies and financial markets generally; New Relic's ability to generate sufficient revenue to achieve and sustain profitability, particularly in light of its significant ongoing expenses; New Relic's short operating history in an evolving industry; New Relic's ability to manage its significant recent growth; the dependence of New Relic's business on its customers remaining on its platform and increasing their spend with New Relic; New Relic's ability to develop enhancements to its products, increase adoption and usage of its products and introduce new products that achieve market acceptance; the dependence on customers expanding their use of New Relic's products beyond the current predominant use cases; New Relic's ability to expand its marketing and sales capabilities and increase sales of its
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