Cloud infrastructure automation platform HashiCorp will be reporting earnings tomorrow after market close. Here’s what to expect.
HashiCorp beat analysts’ revenue expectations by 5.1% last quarter, reporting revenues of $165.1 million, up 15.3% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a poor net revenue retention rate. It added 16 enterprise customers paying more than $100,000 annually to reach a total of 934.
Is HashiCorp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting HashiCorp’s revenue to grow 11.8% year on year to $163.4 million, slowing from the 16.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. HashiCorp has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.7% on average.
Looking at HashiCorp’s peers in the software development segment, some have already reported their Q3 results, giving us a hint as to what we can expect. JFrog delivered year-on-year revenue growth of 23%, beating analysts’ expectations by 3.3%, and Bandwidth reported revenues up 27.5%, topping estimates by 6.5%. JFrog traded down 5.6% following the results while Bandwidth’s stock price was unchanged.
Read our full analysis of JFrog’s results here and Bandwidth’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 16.8% on average over the last month. HashiCorp’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $34.86 (compared to the current share price of $33.56).
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