New Relic Announces Fourth Quarter and Full Fiscal Year 2016 Results

SAN FRANCISCO, Calif., May 11 — Software analytics company New Relic, Inc. (NYSE: NEWR) has announced financial results for the fourth quarter and fiscal year ended March 31, 2016.

“Fiscal 2016 was a record breaking year for New Relic, as we continued to execute our vision to be the first, best place for companies of all sizes to understand their digital business,” said Lew Cirne, founder and CEO, New Relic. “What’s really exciting is that we’re beginning to see the world’s most innovative and the world’s biggest companies standardize on New Relic. In fact, in the past year, our enterprise business grew over 90%, as we crossed through 1,500 Enterprise paid business accounts. As we enter fiscal 2017, we remain focused on extending further into the enterprise via our multi-product software analytics strategy.”

“We were thrilled to be able to maintain strong growth in fiscal 2016 while improving our non-GAAP operating margins by 1,000bps for the second consecutive year,” said Mark Sachleben, CFO, New Relic. “Looking ahead, we are pleased to be able to guide to a similar level of improvement for a third year in a row in fiscal 2017, as we continue to see great leverage in our operating model.”

Fourth Quarter 2016 Financial Highlights

• Revenue of $52.5 million, up 57% compared with the fourth quarter of fiscal 2015 and 10% from the third quarter of fiscal 2016.
• GAAP loss from operations was $19.3 million for the fourth quarter of fiscal 2016, compared with $14.7 million for the fourth quarter of fiscal 2015. Non-GAAP loss from operations was $12.0 million for the fourth quarter of fiscal 2016, compared with $10.2 million for the fourth quarter of fiscal 2015.
• GAAP net loss per share was $0.39 for the fourth quarter of fiscal 2016 based on 49.6 million weighted-average shares outstanding, compared with $0.32 for the fourth quarter of fiscal 2015 based on 47.0 million weighted-average shares outstanding. Non-GAAP net loss per share was $0.24 for the fourth quarter of fiscal 2016 based on 49.6 million non-GAAP weighted-average shares outstanding, compared with $0.22 for the fourth quarter of fiscal 2015 based on 47.0 million non-GAAP weighted-average shares outstanding.
• Cash, cash equivalents and short-term investments were $191.3 million at the end of the fourth quarter of fiscal 2016, compared with $191.0 million at the end of the third quarter of fiscal 2016.

Fiscal 2016 Financial Highlights:

• Revenue of $181.3 million, up 64% compared with fiscal 2015.
• GAAP loss from operations was $67.6 million for fiscal 2016, compared with $49.9 million for fiscal 2015. Non-GAAP loss from operations was $41.2 million for fiscal 2016, compared with $36.2 million for fiscal 2015.
• GAAP net loss per share was $1.39 for fiscal 2016 based on 48.4 million weighted-average shares outstanding, compared with $1.98 for fiscal 2015 based on 25.3 million weighted-average shares outstanding. Non-GAAP net loss per share was $0.85 for fiscal 2016 based on 48.4 million non-GAAP weighted-average shares outstanding, compared with $0.85 for fiscal 2015 based on 42.7 million non-GAAP weighted-average shares outstanding.

Customer Highlights:

• Paid Business Accounts as of March 31, 2016 of 13,518.
• Dollar-Based Net Expansion Rate for the fourth quarter of 140%.
• New customers in the fourth quarter included: Creative Assembly, Immobilien Scout GmbH, Irish Continental Group, John Lewis, Kiva Microfunds, PointClickCare, PowerSchool, PT Global Digital Niaga (Blibli.com), SAVO Group, Things Remembered, Woodbine Entertainment Group and Xero.
• Expanded customer relationships in the fourth quarter included: Adobe Systems Inc., CareerBuilder, Cisco, Concur, Discovery Education, DocuSign Inc., Dunkin’ Brands Inc., Harvard Business Publishing, LinkedIn, Norwegian Cruise Line, Pearson, Rakuten, Ryanair, Thomas Cook, Under Armour and Unilever.

Fourth Quarter & Recent Business Highlights:

• Partnered with Major League Baseball; joining the world’s most data-driven sport with the world’s most powerful software analytics platform.
• Expanded presence in Australia, both through new customer wins, as well as additional field representatives in the region.
• Announced a set of new features across the New Relic Software Analytics Cloud that offer IT operations teams increased visibility, and the ability to diagnose and resolve performance problems quickly.
• Appointed Sohaib Abbasi and James Tolonen to New Relic’s Board of Directors.

Outlook:

New Relic is initiating its outlook for its first quarter of fiscal 2017, as well as the full fiscal year 2017.

First Quarter Fiscal 2017 Outlook:

• Revenue between $56.2 million and $57.2 million, representing year-over-year growth of between 47% and 50%.
• Non-GAAP loss from operations of between $11.5 million and $12.5 million.
• Non-GAAP net loss per share of between $0.23 and $0.25. This assumes 50.4 million non-GAAP weighted average common shares outstanding.

Full Year Fiscal 2017 Outlook:

• Revenue between $248 million and $253 million, representing year-over-year growth of between 37% and 40%.
• Non-GAAP loss from operations of between $31.5 million and $35.5 million.
• Non-GAAP net loss per share of between $0.61 and $0.69. This assumes 51.6 million non-GAAP weighted average common shares outstanding.

About New Relic

New Relic is a software analytics company that delivers real-time insights to more than one million users and 13,000 paid business accounts. As a multi-tenant SaaS platform, the New Relic Software Analytics Cloud helps companies securely monitor their production software in virtually any environment, without having to build or maintain dedicated infrastructure. New Relic helps companies improve application performance, create delightful customer experiences, and realize business success. Learn more at newrelic.com.

Source: New Relic