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HashiCorp (HCP) Reports Q3: Everything You Need To Know Ahead Of Earnings


Jabin Bastian /
2022/12/06 5:21 am EST
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Cloud infrastructure automation platform HashiCorp will be announcing earnings results tomorrow after market hours. Here's what investors should know.

Last quarter HashiCorp reported revenues of $113.8 million, up 51.5% year on year, beating analyst revenue expectations by 11.2%. It was a stunning quarter for the company, with an impressive beat of analyst estimates and exceptional revenue growth. The company added 30 enterprise customers paying more than $100,000 annually to a total of 734.

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 35.1% year on year to $111.1 million, slowing down from the 48.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.31 per share.

HashiCorp Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing two upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 10.1%.

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 69.1% year on year, beating analyst estimates by 6.5% and JFrog reported revenues up 34% year on year, exceeding estimates by 1.88%. GitLab was up 8.99% on the results, and JFrog was flat on the results. Read our full analysis of GitLab's results here and JFrog's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 9.63% over the last month. HashiCorp is up 18.4% during the same time, and is heading into the earnings with analyst price target of $41.80, compared to share price of $26.78.

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.