HashiCorp Earnings: What To Look For From HCP

Anthony Lee /
2023/08/30 6:54 am EDT

Cloud infrastructure automation platform HashiCorp will be announcing earnings results tomorrow after market close. Here's what investors should know.

Last quarter HashiCorp reported revenues of $138 million, up 36.8% year on year, beating analyst revenue expectations by 3.65%. It was a weak quarter for the company,  with revenue guidance for the next quarter and full year missing analysts' expectations. The company added 32 enterprise customers paying more than $100,000 annually to a total of 830.

Is HashiCorp buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting HashiCorp's revenue to grow 21.4% year on year to $138.2 million, slowing down from the 51.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 per share.

HashiCorp Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 9.34%.

Looking at HashiCorp's peers in the software development segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. JFrog delivered top-line growth of 24.1% year on year, beating analyst estimates by 1.41%, and Akamai reported revenues up 3.59% year on year, exceeding estimates by 0.6%. JFrog traded up 2.22% on the results, Akamai was up 8.22%.

Read our full analysis of JFrog's results here and Akamai's results here.

Tech stocks have been under pressure since the end of last year and while some of the software development stocks have fared somewhat better, they have not been spared, with share price declining 8.81% over the last month. HashiCorp is down 3.02% during the same time, and is heading into the earnings with analysts' average price target of $31.8, compared to share price of $28.3.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.