HashiCorp (HCP) Reports Earnings Tomorrow. What To Expect

Radek Strnad /
2023/12/06 2:00 am EST

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

Last quarter HashiCorp reported revenues of $143.2 million, up 25.8% year on year, beating analyst revenue expectations by 3.6%. It was a mixed quarter for the company, with revenue and non-GAAP operating profit exceeding expectations. Its full-year revenue guidance was raised and came in higher than Wall Street's estimates. On the other hand, its new large contract wins slowed and its net revenue retention decreased, missing estimates. The company added 21 enterprise customers paying more than $100,000 annually to a total of 851.

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 14.3% year on year to $143.3 million, slowing down from the 52.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 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 8.5%.

Looking at HashiCorp's peers in the software development segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. GitLab delivered top-line growth of 32.5% year on year, beating analyst estimates by 6.1% and JFrog reported revenues up 23.1% year on year, exceeding estimates by 1.2%. GitLab traded up 11.5% on the results, and JFrog was up 16.7%.

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

There has been positive sentiment among investors in the software development segment, with the stocks up on average 10.1% over the last month. HashiCorp is up 23.1% during the same time, and is heading into the earnings with analyst price target of $30.8, compared to share price of $25.11.

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.

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