HCP - HashiCorp slumps 25% on revenue guidance cut and 8% of workforce reduction

2023-06-08 10:40:56 ET

• HashiCorp ( NASDAQ: HCP ) slumps 25% after the infrastructure company lowered FY23 revenue outlook.
• The company managed to beat on top and bottom line with 4,392 customers at the end of Q1, up from 4,131 customers at the end of Q4.
• The Company ended the first quarter of fiscal 2024 with 830 customers with equal or greater than $100,000 in Annual Recurring Revenue (“ARR”), up from 798 customers at the end of the previous fiscal quarter and 704 customers at the end of the first quarter of fiscal 2023.
• Customers with equal to or greater than $100,000 in ARR represented 89% of total revenue in 1Q24 compared to 89% in the previous fiscal quarter and 88% in the first quarter of fiscal 2023.
• Quarterly subscription revenue from HashiCorp Cloud Platform ( HCP ) reached $16.5M in 1Q24, increased from $14.5M in the previous fiscal quarter and increased from $8.8 million in the first quarter of fiscal 2023.
• The Company's trailing four quarter average Net Dollar Retention rate was 127% at the end of the first quarter of fiscal 2024, compared to 133% at the end of the first quarter of fiscal 2023.
• First quarter total GAAP RPO totaled $635.3 million, representing an increase of 46% year-over-year; first quarter current GAAP RPO totaled $373.5 million, representing an increase of 31% year-over-year.
• The company also announced targeted cuts in discretionary spending and a workforce reduction of approximately 8% to lower cost amid economic headwinds.
• For Q2, the company expects total revenue of $137M-$139M and Non-GAAP EPS loss of $0.16 - $0.14.
• For FY24, the company lowered its revenue outlook to $564M-$570M from prior guidance of$591M-$595M
• Non-GAAP EPS loss of $0.27-$0.24 from prior guidance of $0.40-$0.38.
• Press Release , Transcript

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