HCP - Why HashiCorp Plummeted Today
Shares of HashiCorp (NASDAQ: HCP) fell 13.6% on Friday as of 12:53 p.m. ET, following last night's earnings report. Although the cloud automation software company beat analyst expectations for both revenue and net loss per share, it wasn't enough to overcome difficult sentiment toward high-growth software stocks generally. Full-year guidance for decelerating revenue growth and significant operating losses likely added to concerns.
In the first quarter, HashiCorp grew revenue 51% to $100.9 million, with a net loss per share of $0.43. Both figures handily beat expectations, and other key performance indicators like the net retention rate came in at a solid 133%.
So what exactly was the problem? It's hard to say. Management actually raised its guidance relative to the prior quarter. For the full year, HashiCorp now expects between $422 million and $433 million in revenue, and an adjusted ( non-GAAP ) operating loss between $224 million and $216 million. That guidance was actually up from the prior quarter's full-year guidance of $413 million to $423 million in revenue and an operating loss of $239 million to $231 million.
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Why HashiCorp Plummeted Today