Fourth quarter revenue increased 34% year-over-year to $98.4 million
Quarterly GAAP operating loss narrowed to $(7.5) million; Non-GAAP
operating income of $4.8 million
New Relic’s highest-ever publicly reported dollar-based net expansion
rate of 141%
SAN FRANCISCO--(BUSINESS WIRE)--
New Relic, Inc. (NYSE:NEWR), provider of real-time insights for
software-driven businesses, today announced financial results for
the fourth quarter and full fiscal year 2018 ended March 31, 2018.
“We are very pleased with our fourth quarter results, which capped off
our fiscal year with revenue of over $355 million, a 35% increase over
fiscal 2017,” said Lew Cirne, CEO and founder, New Relic. “Strong
quarterly results helped narrow our quarter’s GAAP operating loss to
$(7.5) million and expanded non-GAAP operating income to $4.8 million.
We attribute our continued momentum in the enterprise market to our
success in helping companies solve business-critical issues including
mastering the complexity of modern software, reducing the risk of
service interruptions for customer-facing applications, and competing in
the digital era.”
Fourth Quarter 2018 Financial Highlights:
-
Revenue of $98.4 million, growing 34% year-over-year, and up 7%
sequentially from the third quarter of fiscal 2018.
-
GAAP loss from operations was $(7.5) million for the fourth quarter of
fiscal 2018, compared to $(15.1) million for the fourth quarter of
fiscal 2017. Non-GAAP income from operations was $4.8 million for the
fourth quarter of fiscal 2018, compared to a loss of $(5.8) million
for the fourth quarter of fiscal 2017.
-
GAAP net loss per basic share was $(0.13) for the fourth quarter of
fiscal 2018 based on 55.7 million weighted average shares outstanding,
compared to $(0.28) for the fourth quarter of fiscal 2017 based on
53.0 million weighted average shares outstanding. Non-GAAP net income
per diluted share was $0.09 for the fourth quarter of fiscal 2018,
compared to a loss of $(0.11) per basic share for the fourth quarter
of fiscal 2017.
-
Cash, cash equivalents and short-term investments were $247.9 million
at the end of the fourth quarter of fiscal 2018, compared with $233.0
million at the end of the third quarter of fiscal 2018.
Fiscal 2018 Financial Highlights:
-
Revenue of $355.1 million, up 35% compared with fiscal 2017.
-
GAAP loss from operations was $(46.8) million for fiscal 2018,
compared with $(61.3) million for fiscal 2017. Non-GAAP loss from
operations was $(1.5) million for fiscal 2018, compared with $(25.4)
million for fiscal 2017.
-
GAAP net loss per basic share was $(0.83) for fiscal 2018 based on
54.8 million weighted average shares outstanding, compared with
$(1.18) for fiscal 2017 based on 51.7 million weighted average shares
outstanding. Non-GAAP net income per basic and diluted share was
breakeven for fiscal 2018, compared with a net loss per basic share of
$(0.49) for fiscal 2017.
Customer Highlights:
-
$100K+ Paid Business Accounts as of March 31, 2018 of 703, compared to
517 as of March 31, 2017.
-
Paid Business Accounts as of March 31, 2018 of over 17,000, compared
to over 15,200 as of March 31, 2017.
-
54% of ARR from Enterprise Paid Business Accounts as of March 31,
2018, compared to 46% as of March 31, 2017.
-
Dollar-Based Net Expansion Rate for the fourth quarter of fiscal 2018
of 141%, compared to 133% as of the fourth quarter of fiscal 2017.
Fourth Quarter & Recent Business Highlights:
-
New Relic recognized as a Leader
in Gartner’s Magic Quadrant for Application Performance Monitoring
Suites for sixth consecutive time.
-
Announced new
integrations for Amazon Web Services, Microsoft Azure, and Google
Cloud Platform, which assist in ensuring application and
infrastructure health.
-
Kicked off 17-city “Well
Instrumented” tour at Global AWS Summits, driving customer and
partner success in cloud migration and transformation projects.
-
Announced
executive promotions designed to drive continued global customer
success, including Erica Schultz to the role of Chief Revenue Officer
and Roger Scott to the role of Chief Customer Officer.
Outlook:
On April 1, 2018, New Relic adopted Accounting Standards Codification
(ASC) 606 using the modified retrospective method. For the first quarter
and full fiscal year 2019, we expect no material difference in revenue
as a result of the adoption of this new revenue standard. Under the new
standard, we will be deferring certain expenses that were previously
recognized upfront, primarily sales commissions. As a result, we expect
a benefit of approximately $8.0 to $12.0 million to GAAP and non-GAAP
expenses for the full fiscal year 2019 and approximately $0.5 to $1.5
million to GAAP and non-GAAP expenses for the first fiscal quarter of
2019. The guidance below incorporates the expected impact of the
adoption of this new revenue standard.
New Relic has not reconciled its expectations as to non-GAAP income
(loss) from operations or non-GAAP net income (loss) per share to their
most directly comparable GAAP measure as a result of uncertainty
regarding, and the potential variability of, reconciling items such as
stock-based compensation, lawsuit litigation expenses and employer
payroll taxes on equity incentive plans. 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.
-
First Quarter Fiscal 2019 Outlook:
-
Revenue between $104.5 million and $106.5 million, representing
year-over-year growth of between 30% and 32%, respectively.
-
Non-GAAP income from operations of between $5.5 million and $6.5
million.
-
Non-GAAP net income per diluted share of between $0.10 and $0.12.
This assumes 59.3 million weighted average diluted shares
outstanding.
-
Full Year Fiscal 2019 Outlook:
-
Revenue between $452.0 million and $458.0 million, representing
year-over-year growth of between 27% and 29%.
-
Non-GAAP income from operations of between $15.0 million and $20.0
million.
-
Non-GAAP net income per diluted share of between $0.29 and $0.37.
This assumes 60.2 million weighted average common shares
outstanding.
Conference Call Details:
-
What: New Relic financial results for the fourth quarter and
full fiscal 2018 and outlook for the first quarter and the full year
of fiscal 2019
-
When: May 8, 2018 at 2:00 P.M. Pacific Time (5:00 P.M. Eastern
Time)
-
Dial in: To access the call in the U.S., please dial (833)
241-7256, and for international callers, please dial (647) 689-4220.
Callers may provide confirmation number 6025918 to access the call
more quickly, and are encouraged to dial into the call 10 to 15
minutes prior to the start to prevent any delay in joining.
-
Webcast: http://ir.newrelic.com
(live and replay)
-
Replay: Following the completion of the call through 11:59 PM
Eastern Time on May 15, 2018, a telephone replay will be available by
dialing (800) 585-8367 from the United States or (416) 621-4642
internationally with conference ID 6025918.
About New Relic
New Relic provides the real-time insights that software-driven
businesses need to innovate faster. New Relic’s cloud platform makes
every aspect of modern software and infrastructure observable, so
companies can find and fix problems faster, build high-performing DevOps
teams, and speed up transformation projects. Learn why more than 50% of
the Fortune 100 trust New Relic at newrelic.com.
Forward-Looking Statements
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 first quarter of fiscal 2019 and
for the full year of fiscal 2019, and the expected impact of ASC 606 on
those financial results, such as revenue, non-GAAP income (loss) from
operations and non-GAAP net income (loss) per share, free cash flow,
non-GAAP operating income, gross margins, deferred revenue, physical
capital expenditures, capitalized software, and cash from operations,
its outlook on fiscal 2019 capital expenditures, operating margin and
gross margin, New Relic’s ability to maintain non-GAAP profitability,
market trends and opportunity, continued heavy investment towards
potential future growth opportunity, the market opportunity for the New
Relic platform, the growth of the platform or any individual product,
the timing and benefits from additional integrations with respect to the
leading cloud platforms, New Relic’s customer adoption, momentum,
competitive advantages, and value proposition to its customers, benefits
from and investment in New Relic Applied Intelligence, the pace of
hiring activity and seasonality. 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 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; fluctuation of New Relic’s quarterly results; the development of
the overall market for SaaS business software; the dependence of New
Relic’s business on its customers purchasing additional subscriptions
and products from it and renewing their subscriptions; 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; risks associated with recent changes to New Relic’s
management structure; New Relic’s ability to persuade its customers to
expand their use of New Relic’s products to additional use cases; New
Relic’s ability to determine optimal prices for its products; New
Relic’s ability to expand its marketing and sales capabilities and
increase sales of its solutions to large enterprises while mitigating
the risks associated with serving such customers; privacy concerns,
which could result in additional cost and liability to New Relic or
inhibit sales; changes in privacy laws, regulations and standards; New
Relic’s ability to effectively compete in the intensely competitive
market for application performance monitoring solutions and respond
effectively to rapidly changing technology, evolving industry standards
and changing customer needs, requirements or preferences; New Relic’s
dependence on lead generation strategies to drive sales and revenue;
interruptions or performance problems associated with New Relic’s
technology and infrastructure; defects or disruptions in New Relic’s
products; the expense and complexity of New Relic’s ongoing and planned
investments in data center hosting facilities; risks associated with
international operations; New Relic’s ability to protect its
intellectual property rights; and other “Risk Factors” set forth in New
Relic’s most recent filings with the Securities and Exchange Commission
(the “SEC”).
Further information on these and other factors that could affect New
Relic’s financial results and the forward-looking statements in this
press release is included in the filings New Relic makes with the SEC
from time to time, particularly under the captions “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations,” including the Quarterly Report on Form 10-Q for the
fiscal quarter ended December 31, 2017. Copies of these documents may be
obtained by visiting New Relic’s Investor Relations website at http://ir.newrelic.com
or the SEC's website at www.sec.gov.
New Relic assumes no obligation and does not intend to update these
forward-looking statements, except as required by law.
Non-GAAP Financial Measures
New Relic discloses the following non-GAAP financial measures in this
release and the earnings call referencing this press release: non-GAAP
income (loss) from operations, non-GAAP net income (loss), non-GAAP
gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP
sales and marketing, non-GAAP research and development, non-GAAP general
and administrative, non-GAAP net income (loss) per share and free cash
flow. New Relic uses each of these non-GAAP financial measures
internally to understand and compare operating results across accounting
periods, for internal budgeting and forecasting purposes, for short- and
long-term operating plans, and to evaluate New Relic’s financial
performance. New Relic believes they are useful to investors, as a
supplement to GAAP measures, in evaluating its operational performance,
as further discussed below. New Relic’s non-GAAP financial measures may
not provide information that is directly comparable to that provided by
other companies in its industry, as other companies in its industry may
calculate non-GAAP financial results differently, particularly related
to non-recurring, unusual items. In addition, there are limitations in
using non-GAAP financial measures because the non-GAAP financial
measures are not prepared in accordance with GAAP and may be different
from non-GAAP financial measures used by other companies and exclude
expenses that may have a material impact on New Relic’s reported
financial results.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. A reconciliation of the historical non-GAAP financial
measures to their most directly comparable GAAP measures has been
provided in the financial statement tables included below in this press
release. Investors are encouraged to review the reconciliation of these
historical non-GAAP financial measures to their most directly comparable
GAAP financial measures.
New Relic defines non-GAAP gross profit, non-GAAP sales and marketing,
non-GAAP research and development, non-GAAP general and administrative,
non-GAAP operating income (loss) and non-GAAP net income (loss) as the
respective GAAP balances, adjusted for: (1) stock-based compensation
expense, (2) amortization of stock-based compensation capitalized in
software development costs, (3) the amortization of purchased
intangibles, (4) the transaction costs related to acquisition, (5)
lawsuit litigation expense, and (6) employer payroll tax expense on
equity incentive plans, as applicable. Non-GAAP net income (loss) per
share is calculated as non-GAAP net income (loss) divided by weighted
average shares used to compute net income (loss) per share attributable
to common stockholders. New Relic defines free cash flow as GAAP cash
from operations, minus capital expenditures, minus capitalized software.
Management believes these non-GAAP financial measures are useful to
investors and others in assessing New Relic's operating performance due
to the following factors:
Stock-based compensation and amortization of stock-based compensation
capitalized in software development costs. New Relic utilizes
share-based compensation to attract and retain employees. It is
principally aimed at aligning their interests with those of its
stockholders and at long-term retention, rather than to address
operational performance for any particular period. As a result,
share-based compensation expenses vary for reasons that are generally
unrelated to financial and operational performance in any particular
period.
Amortization of purchased intangibles and transaction costs related
to acquisition. New Relic views amortization of purchased intangible
assets as items arising from pre-acquisition activities determined at
the time of an acquisition. While these intangible assets are evaluated
for impairment regularly, amortization of the cost of purchased
intangibles is an expense that is not typically affected by operations
during any particular period. Similarly, New Relic views acquisition
related expenses as events that are not necessarily reflective of
operational performance during a period.
Lawsuit litigation expense. New Relic may from time to time incur
charges or benefits that are outside of the ordinary course of New
Relic’s business related to litigation. New Relic believes it is useful
to exclude such charges or benefits because it does not consider such
amounts to be part of the ongoing operation of New Relic's business and
because of the singular nature of the claims underlying the matter.
Employer payroll tax expense on equity incentive plans. New Relic
excludes employer payroll tax expense on equity incentive plans as these
expenses are tied to the exercise or vesting of underlying equity awards
and the price of New Relic's common stock at the time of vesting or
exercise. As a result, these taxes may vary in any particular period
independent of the financial and operating performance of New Relic’s
business.
Additionally, New Relic's management believes that the non-GAAP
financial measure free cash flow is meaningful to investors because
management reviews cash flows generated from operations after taking
into consideration capital expenditures and the capitalization of
software development costs due to the fact that these expenditures are
considered to be a necessary component of ongoing operations.
Operating Metrics
New Relic’s dollar-based net expansion rate compares its recurring
subscription revenue from customers from one period to the next. It is
increased when customers increase their use of New Relic’s products, use
additional products, or upgrade to a higher subscription tier. New
Relic’s dollar-based net expansion rate is reduced when customers
decrease their use of New Relic’s products, use fewer products, or
downgrade to a lower subscription tier.
New Relic's monthly recurring revenue represents the revenue that New
Relic would contractually expect to receive from those customers over
the following month, without any increase or reduction in any of their
subscriptions. Similarly, annual recurring revenue represents the
revenue that New Relic would contractually expect to receive from those
customers over the following 12-month period, without any increase or
reduction in any of their subscriptions.
New Relic defines the number of paid business accounts at the end of any
particular period as the number of accounts at the end of the period as
identified by a unique account identifier for which New Relic has
recognized revenue on the last day of the period indicated. New Relic
defines an enterprise paid business account as a paid business account
that New Relic measures to have over 1,000 employees.
New Relic is a registered trademark of New Relic, Inc.
All product and company names herein may be trademarks of their
registered owners.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
Year Ended March 31,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Revenue
|
|
|
|
$
|
98,448
|
|
|
|
$
|
73,336
|
|
|
|
$
|
355,058
|
|
|
|
$
|
263,479
|
|
|
Cost of revenue
|
|
|
|
|
16,383
|
|
|
|
|
13,930
|
|
|
|
|
62,725
|
|
|
|
|
49,990
|
|
|
Gross profit
|
|
|
|
|
82,065
|
|
|
|
|
59,406
|
|
|
|
|
292,333
|
|
|
|
|
213,489
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
$
|
19,646
|
|
|
|
$
|
15,967
|
|
|
|
|
74,332
|
|
|
|
|
61,054
|
|
|
Sales and marketing
|
|
|
|
|
55,006
|
|
|
|
|
45,537
|
|
|
|
|
207,021
|
|
|
|
|
168,163
|
|
|
General and administrative
|
|
|
|
|
14,945
|
|
|
|
|
12,968
|
|
|
|
|
57,788
|
|
|
|
|
45,615
|
|
|
Total operating expenses
|
|
|
|
|
89,597
|
|
|
|
|
74,472
|
|
|
|
|
339,141
|
|
|
|
|
274,832
|
|
|
Loss from operations
|
|
|
|
|
(7,532
|
)
|
|
|
|
(15,066
|
)
|
|
|
|
(46,808
|
)
|
|
|
|
(61,343
|
)
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
687
|
|
|
|
|
393
|
|
|
|
|
2,190
|
|
|
|
|
1,189
|
|
|
Interest expense
|
|
|
|
|
(22
|
)
|
|
|
|
(24
|
)
|
|
|
|
(86
|
)
|
|
|
|
(87
|
)
|
|
Other income (expense), net
|
|
|
|
|
226
|
|
|
|
|
(55
|
)
|
|
|
|
343
|
|
|
|
|
(572
|
)
|
|
Loss before income taxes
|
|
|
|
|
(6,641
|
)
|
|
|
|
(14,752
|
)
|
|
|
|
(44,361
|
)
|
|
|
|
(60,813
|
)
|
|
Income tax provision
|
|
|
|
|
325
|
|
|
|
|
241
|
|
|
|
|
959
|
|
|
|
|
264
|
|
|
Net loss
|
|
|
|
$
|
(6,966
|
)
|
|
|
$
|
(14,993
|
)
|
|
|
$
|
(45,320
|
)
|
|
|
$
|
(61,077
|
)
|
|
Net loss per share, basic and diluted
|
|
|
|
$
|
(0.13
|
)
|
|
|
$
|
(0.28
|
)
|
|
|
$
|
(0.83
|
)
|
|
|
$
|
(1.18
|
)
|
|
Weighted-average shares used to compute net loss per share, basic
and diluted
|
|
|
|
|
55,669
|
|
|
|
|
52,991
|
|
|
|
|
54,814
|
|
|
|
|
51,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
(In thousands, except par value; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2018
|
|
|
March 31, 2017
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
132,479
|
|
|
|
$
|
88,305
|
|
|
Short-term investments
|
|
|
|
|
115,441
|
|
|
|
|
118,101
|
|
|
Accounts receivable, net of allowance for doubtful accounts of
$1,728 and $1,117, respectively
|
|
|
|
|
99,488
|
|
|
|
|
62,032
|
|
|
Prepaid expenses and other current assets
|
|
|
|
|
15,591
|
|
|
|
|
8,169
|
|
|
Total current assets
|
|
|
|
|
362,999
|
|
|
|
|
276,607
|
|
|
Property and equipment, net
|
|
|
|
|
53,899
|
|
|
|
|
50,728
|
|
|
Restricted cash
|
|
|
|
|
8,202
|
|
|
|
|
8,115
|
|
|
Goodwill
|
|
|
|
|
11,828
|
|
|
|
|
11,828
|
|
|
Intangible assets, net
|
|
|
|
|
1,312
|
|
|
|
|
2,499
|
|
|
Other assets
|
|
|
|
|
5,086
|
|
|
|
|
2,492
|
|
|
Total assets
|
|
|
|
$
|
443,326
|
|
|
|
$
|
352,269
|
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
2,985
|
|
|
|
$
|
6,522
|
|
|
Accrued compensation and benefits
|
|
|
|
|
17,414
|
|
|
|
|
15,935
|
|
|
Other current liabilities
|
|
|
|
|
8,619
|
|
|
|
|
7,607
|
|
|
Deferred revenue
|
|
|
|
|
189,633
|
|
|
|
|
125,269
|
|
|
Total current liabilities
|
|
|
|
|
218,651
|
|
|
|
|
155,333
|
|
|
Deferred rent, non-current
|
|
|
|
|
8,147
|
|
|
|
|
8,272
|
|
|
Deferred revenue, non-current
|
|
|
|
|
649
|
|
|
|
|
1,135
|
|
|
Other liabilities, non-current
|
|
|
|
|
775
|
|
|
|
|
685
|
|
|
Total liabilities
|
|
|
|
|
228,222
|
|
|
|
|
165,425
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value
|
|
|
|
|
56
|
|
|
|
|
53
|
|
|
Treasury stock - at cost (260 shares)
|
|
|
|
|
(263
|
)
|
|
|
|
(263
|
)
|
|
Additional paid-in capital
|
|
|
|
|
521,119
|
|
|
|
|
447,314
|
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(324
|
)
|
|
|
|
(96
|
)
|
|
Accumulated deficit
|
|
|
|
|
(305,484
|
)
|
|
|
|
(260,164
|
)
|
|
Total stockholders’ equity
|
|
|
|
|
215,104
|
|
|
|
|
186,844
|
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
443,326
|
|
|
|
$
|
352,269
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
(In thousands; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March 31,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net loss:
|
|
|
|
$
|
(45,320
|
)
|
|
|
$
|
(61,077
|
)
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
23,243
|
|
|
|
|
18,805
|
|
|
Stock-based compensation expense
|
|
|
|
|
40,598
|
|
|
|
|
31,946
|
|
|
Other
|
|
|
|
|
1,559
|
|
|
|
|
1,125
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(38,315
|
)
|
|
|
|
(30,251
|
)
|
|
Prepaid expenses and other assets
|
|
|
|
|
(9,794
|
)
|
|
|
|
(3,658
|
)
|
|
Accounts payable
|
|
|
|
|
(1,823
|
)
|
|
|
|
658
|
|
|
Accrued compensation and benefits and other liabilities
|
|
|
|
|
2,112
|
|
|
|
|
5,550
|
|
|
Deferred revenue
|
|
|
|
|
63,878
|
|
|
|
|
51,681
|
|
|
Deferred rent
|
|
|
|
|
(488
|
)
|
|
|
|
4,149
|
|
|
Net cash provided by operating activities
|
|
|
|
|
35,650
|
|
|
|
|
18,928
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
(21,368
|
)
|
|
|
|
(21,430
|
)
|
|
Increase in restricted cash
|
|
|
|
|
(87
|
)
|
|
|
|
—
|
|
|
Purchases of short-term investments
|
|
|
|
|
(128,669
|
)
|
|
|
|
(168,938
|
)
|
|
Proceeds from sale and maturity of short-term investments
|
|
|
|
|
131,135
|
|
|
|
|
175,877
|
|
|
Capitalized software development costs
|
|
|
|
|
(4,843
|
)
|
|
|
|
(4,029
|
)
|
|
Net cash used in investing activities
|
|
|
|
|
(23,832
|
)
|
|
|
|
(18,520
|
)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from employee stock purchase plan
|
|
|
|
|
7,592
|
|
|
|
|
5,283
|
|
|
Proceeds from exercise of employee stock options
|
|
|
|
|
24,764
|
|
|
|
|
16,700
|
|
|
Net cash provided by financing activities
|
|
|
|
|
32,356
|
|
|
|
|
21,983
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
|
44,174
|
|
|
|
|
22,391
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
88,305
|
|
|
|
|
65,914
|
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
132,479
|
|
|
|
$
|
88,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from GAAP to Non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
Year Ended March 31,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Reconciliation of gross profit and gross
margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
|
$
|
82,065
|
|
|
|
$
|
59,406
|
|
|
|
$
|
292,333
|
|
|
|
$
|
213,489
|
|
|
Plus: Stock-based compensation
|
|
|
|
|
724
|
|
|
|
|
478
|
|
|
|
|
2,440
|
|
|
|
|
1,847
|
|
|
Plus: Amortization of purchased intangibles
|
|
|
|
|
197
|
|
|
|
|
396
|
|
|
|
|
1,187
|
|
|
|
|
1,062
|
|
|
Plus: Amortization of stock-based compensation capitalized in
software development costs
|
|
|
|
|
225
|
|
|
|
|
230
|
|
|
|
|
927
|
|
|
|
|
754
|
|
|
Plus: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
93
|
|
|
|
|
45
|
|
|
|
|
208
|
|
|
|
|
114
|
|
|
Non-GAAP gross profit
|
|
|
|
$
|
83,304
|
|
|
|
$
|
60,555
|
|
|
|
$
|
297,095
|
|
|
|
$
|
217,266
|
|
|
GAAP gross margin
|
|
|
|
|
83
|
%
|
|
|
|
81
|
%
|
|
|
|
82
|
%
|
|
|
|
81
|
%
|
|
Non-GAAP adjustments
|
|
|
|
|
2
|
%
|
|
|
|
2
|
%
|
|
|
|
2
|
%
|
|
|
|
1
|
%
|
|
Non-GAAP gross margin
|
|
|
|
|
85
|
%
|
|
|
|
83
|
%
|
|
|
|
84
|
%
|
|
|
|
82
|
%
|
|
Reconciliation of operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development
|
|
|
|
$
|
19,646
|
|
|
|
$
|
15,967
|
|
|
|
$
|
74,332
|
|
|
|
$
|
61,054
|
|
|
Less: Stock-based compensation
|
|
|
|
|
(3,076
|
)
|
|
|
|
(2,522
|
)
|
|
|
|
(12,176
|
)
|
|
|
|
(9,975
|
)
|
|
Less: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
(412
|
)
|
|
|
|
(172
|
)
|
|
|
|
(967
|
)
|
|
|
|
(448
|
)
|
|
Non-GAAP research and development
|
|
|
|
$
|
16,158
|
|
|
|
$
|
13,273
|
|
|
|
$
|
61,189
|
|
|
|
$
|
50,631
|
|
|
GAAP sales and marketing
|
|
|
|
$
|
55,006
|
|
|
|
$
|
45,537
|
|
|
|
$
|
207,021
|
|
|
|
$
|
168,163
|
|
|
Less: Stock-based compensation
|
|
|
|
|
(4,811
|
)
|
|
|
|
(3,392
|
)
|
|
|
|
(16,925
|
)
|
|
|
|
(13,042
|
)
|
|
Less: Amortization of purchased intangibles
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(25
|
)
|
|
Less: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
(390
|
)
|
|
|
|
(166
|
)
|
|
|
|
(1,080
|
)
|
|
|
|
(501
|
)
|
|
Non-GAAP sales and marketing
|
|
|
|
$
|
49,805
|
|
|
|
$
|
41,979
|
|
|
|
$
|
189,016
|
|
|
|
$
|
154,595
|
|
|
GAAP general and administrative
|
|
|
|
$
|
14,945
|
|
|
|
$
|
12,968
|
|
|
|
$
|
57,788
|
|
|
|
$
|
45,615
|
|
|
Less: Stock-based compensation
|
|
|
|
|
(2,209
|
)
|
|
|
|
(1,835
|
)
|
|
|
|
(9,057
|
)
|
|
|
|
(7,082
|
)
|
|
Less: Lawsuit litigation
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(48
|
)
|
|
Less: Amortization of purchased intangibles
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(75
|
)
|
|
Less: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
(190
|
)
|
|
|
|
(77
|
)
|
|
|
|
(387
|
)
|
|
|
|
(950
|
)
|
|
Non-GAAP general and administrative
|
|
|
|
$
|
12,546
|
|
|
|
$
|
11,056
|
|
|
|
$
|
48,344
|
|
|
|
$
|
37,460
|
|
|
Reconciliation of income (loss) from
operations and operating margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from operations
|
|
|
|
$
|
(7,532
|
)
|
|
|
$
|
(15,066
|
)
|
|
|
$
|
(46,808
|
)
|
|
|
$
|
(61,343
|
)
|
|
Plus: Stock-based compensation
|
|
|
|
|
10,820
|
|
|
|
|
8,227
|
|
|
|
|
40,598
|
|
|
|
|
31,946
|
|
|
Plus: Lawsuit litigation
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
48
|
|
|
Plus: Amortization of purchased intangibles
|
|
|
|
|
197
|
|
|
|
|
396
|
|
|
|
|
1,187
|
|
|
|
|
1,162
|
|
|
Plus: Amortization of stock-based compensation capitalized in
software development costs
|
|
|
|
|
225
|
|
|
|
|
230
|
|
|
|
|
927
|
|
|
|
|
754
|
|
|
Plus: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
1,085
|
|
|
|
|
460
|
|
|
|
|
2,642
|
|
|
|
|
2,013
|
|
|
Non-GAAP income (loss) from operations
|
|
|
|
$
|
4,795
|
|
|
|
$
|
(5,753
|
)
|
|
|
$
|
(1,454
|
)
|
|
|
$
|
(25,420
|
)
|
|
GAAP operating margin
|
|
|
|
|
(8
|
)%
|
|
|
|
(21
|
)%
|
|
|
|
(13
|
)%
|
|
|
|
(23
|
)%
|
|
Non-GAAP adjustments
|
|
|
|
|
13
|
%
|
|
|
|
13
|
%
|
|
|
|
13
|
%
|
|
|
|
13
|
%
|
|
Non-GAAP operating margin
|
|
|
|
|
5
|
%
|
|
|
|
(8
|
)%
|
|
|
|
—
|
%
|
|
|
|
(10
|
)%
|
|
Reconciliation of net income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
|
|
|
$
|
(6,966
|
)
|
|
|
$
|
(14,993
|
)
|
|
|
$
|
(45,320
|
)
|
|
|
$
|
(61,077
|
)
|
|
Plus: Stock-based compensation
|
|
|
|
|
10,820
|
|
|
|
|
8,227
|
|
|
|
|
40,598
|
|
|
|
|
31,946
|
|
|
Plus: Lawsuit litigation
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
48
|
|
|
Plus: Amortization of purchased intangibles
|
|
|
|
|
197
|
|
|
|
|
396
|
|
|
|
|
1,187
|
|
|
|
|
1,162
|
|
|
Plus: Amortization of stock-based compensation capitalized in
software development costs
|
|
|
|
|
225
|
|
|
|
|
230
|
|
|
|
|
927
|
|
|
|
|
754
|
|
|
Plus: Employer payroll tax on employee equity incentive plans
|
|
|
|
|
1,085
|
|
|
|
|
460
|
|
|
|
|
2,642
|
|
|
|
|
2,013
|
|
|
Non-GAAP net income (loss)
|
|
|
|
$
|
5,361
|
|
|
|
$
|
(5,680
|
)
|
|
|
$
|
34
|
|
|
|
$
|
(25,154
|
)
|
|
Non-GAAP net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.10
|
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
0.00
|
|
|
|
$
|
(0.49
|
)
|
|
Diluted
|
|
|
|
$
|
0.09
|
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
0.00
|
|
|
|
$
|
(0.49
|
)
|
|
Shares used in non-GAAP per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
55,669
|
|
|
|
|
52,991
|
|
|
|
|
54,814
|
|
|
|
|
51,715
|
|
|
Diluted
|
|
|
|
|
58,669
|
|
|
|
|
52,991
|
|
|
|
|
57,528
|
|
|
|
|
51,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Cash Flows from Operating Activities to
Free Cash Flows
|
|
(In thousands; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
Year Ended March 31,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Net cash provided by operating activities
|
|
|
|
$
|
11,557
|
|
|
|
$
|
9,591
|
|
|
|
$
|
35,650
|
|
|
|
$
|
18,928
|
|
|
Capital expenditures
|
|
|
|
|
(3,791
|
)
|
|
|
|
(4,829
|
)
|
|
|
|
(21,368
|
)
|
|
|
|
(21,430
|
)
|
|
Capitalized software development costs
|
|
|
|
|
(1,789
|
)
|
|
|
|
(954
|
)
|
|
|
|
(4,843
|
)
|
|
|
|
(4,029
|
)
|
|
Free cash flows (Non-GAAP)
|
|
|
|
$
|
5,977
|
|
|
|
$
|
3,808
|
|
|
|
$
|
9,439
|
|
|
|
$
|
(6,531
|
)
|
|
Net cash used in investing activities
|
|
|
|
$
|
(13,272
|
)
|
|
|
$
|
(8,672
|
)
|
|
|
$
|
(23,832
|
)
|
|
|
$
|
(18,520
|
)
|
|
Net cash provided by financing activities
|
|
|
|
$
|
8,957
|
|
|
|
$
|
7,216
|
|
|
|
$
|
32,356
|
|
|
|
$
|
21,983
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180508006533/en/
Source: New Relic Corporate Communications