New Relic Dec 2018 Quarter

Here’s my review from the Sep 2018 quarter:…

And below are the December quarter highlights. Headline: More (un-sexy) 35% growth and steadily climbing profit.

Revenue 124.0m (up 35.0% YoY) Exactly what we’ve come to expect.

Gross Profit 103.8m (up 36.3% YoY) Exactly what we’ve come to expect.

Operating Expenses 112.3m (up 33.5% YoY) OpEx grew more than usual this quarter, but New Relic acquired a company called SignifAI, and also opened a new office in Paris, so there may have been unusual expenses.

Stock Based Compensation (SBC) remained about 12% of revenue. I’m fine with that. Closer to 20% is more problematic. 10-12% is normal for SaaS companies.

Accounts over $100k 816 (up 29.7% YoY) – still growing well, even though they’ve said their focus is upmarket. But I’d still love to see it tick back up.

March Quarter Guidance
Revenue: 126.5m - 128.5m, and per Yahoo, the average Wall Street estimate for the guide was 126.0m.
Adjusted EPS: 0.04 - 0.06, and The Street expected 0.03 on average.
All good here.

I still see sure and steady growth here. I’ll be hoping the large account additions don’t sloe too drastically, but I don’t see a reason to panic yet. Everything is going as expected. At present I still see NEWR as slightly but not drastically undervalued. Happy owner here!