Cloud infrastructure automation platform HashiCorp will be reporting results tomorrow after market hours. Here's what to expect.
Last quarter HashiCorp reported revenues of $146.1 million, up 16.6% year on year, beating analyst revenue expectations by 2%. It was a mixed quarter for the company, with a material improvement in its gross margin. HashiCorp also recorded many new large contract wins. On the other hand, its net revenue retention fell and its remaining performance obligations (RPO) came in below Wall Street's estimates. RPO is a leading indicator of demand and can be used as a proxy for the company's backlog.
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 9.9% year on year to $149.3 million, slowing down from the 40.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
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 7.7%.
Looking at HashiCorp's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. JFrog delivered top-line growth of 27.1% year on year, beating analyst estimates by 4.7% and Cloudflare reported revenues up 32% year on year, exceeding estimates by 2.7%. JFrog traded up 11.8% on the results, Cloudflare was up 20.2%.
Read our full analysis of JFrog's results here and Cloudflare's results here.
There has been positive sentiment among investors in the software development segment, with the stocks up on average 3.7% over the last month. HashiCorp is up 12.4% during the same time, and is heading into the earnings with analyst price target of $25.8, compared to share price of $25.7.
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