HashiCorp (HCP) Reports Earnings Tomorrow. What To Expect

Jabin Bastian /
2023/03/08 5:09 am EST

Cloud infrastructure automation platform HashiCorp will be announcing earnings results tomorrow after market close. Here's what to expect.

Last quarter HashiCorp reported revenues of $125.3 million, up 52.4% year on year, beating analyst revenue expectations by 12.8%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and exceptional revenue growth. The company added 26 enterprise customers paying more than $100,000 annually to a total of 760.

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 28.7% year on year to $124.2 million, slowing down from the 56.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.22 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 since going public on average by 10.8%.

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 29.2% year on year, missing analyst estimates by 0.58% and Datadog reported revenues up 43.9% year on year, exceeding estimates by 4.44%. JFrog traded down 5.79% on the results, Datadog was down 6.14%. Read our full analysis of JFrog's results here and Datadog's results here.

There has been a stampede out of high valuation technology stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.35% over the last month. HashiCorp is down 4.69% during the same time, and is heading into the earnings with analyst price target of $36.1, compared to share price of $31.92.

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.