New Relic Revenue Growth and Performance

New Relic's revenue growth has been impressive, with a 30% year-over-year increase in 2020. This significant growth is a testament to the company's ability to adapt to changing market conditions.

New Relic's strong performance can be attributed to its focus on delivering high-quality products and services. The company's commitment to innovation has allowed it to stay ahead of the competition.

New Relic's revenue growth is driven by its expanding customer base, with over 500 enterprise customers in 2020. This expansion has contributed significantly to the company's revenue growth.

New Relic is on a roll, with revenue growth that's been impressive over the last two years. New Relic's quarterly revenue was once again up 12.1% year on year this quarter.

The company's growth did slow down compared to last quarter, but a one-off fluctuation is usually not concerning. New Relic's revenue increased by just $136 thousand in Q1 compared to $2.73 million in Q4 2023.

Analysts were expecting sales to grow 11.1% over the next 12 months ahead of the earnings results announcement. The company's fundamentals are undoubtedly best-in-class, with 40%+ free cash flow margins.

New Relic has a range of offerings alongside its core APM tools, providing multiple routes to growing spend within a customer. This includes cross-selling additional products into APM-only accounts.

The company's cloud-first strategy for the current financial year is focused on new users and user stickiness, aiming to drive business success. New Relic expects to have its first $10 million ARR relationship in the not-too-distant future.

New Relic's free cash flow came in at $73.5 million in Q1, up 91.8% year on year.

This significant increase in free cash flow is a testament to the company's strong financial performance. New Relic has generated $69 million in free cash flow over the last 12 months, a decent 6.77% of revenue.

The company's asset-lite business model is a key contributor to its strong free cash flow margins. This model allows New Relic to keep costs low and reinvest in its business.

New Relic's free cash flow is not the only impressive financial metric. The company has more than $457 million in cash on hand, which positions it well to invest in growth.

New Relic's market capitalization is $5.2 billion, but its strong cash position and positive free cash flow over the last 12 months make it an attractive investment opportunity.

New Relic's revenue growth has been impressive, with a 12.1% year-over-year increase this quarter.

The company's quarterly revenue has been steadily growing, reaching $242.6 million this quarter, up from $180.5 million in Q1 FY2022.

New Relic's sales growth is expected to continue, with analysts predicting an 11.1% increase over the next 12 months.

The company's revenue growth may have slowed down slightly this quarter, but a one-off fluctuation is usually not a cause for concern.

New Relic's fundamentals are undoubtedly best-in-class, with 40%+ free cash flow margins.

Here are some impressive statistics highlighting the company's overall achievements:

New Relic's customer spend is growing rapidly, with a range of offerings alongside its core APM tools providing multiple routes to increasing customer spend.

One way New Relic grows spend within a customer is through existing applications leading to more APM licenses. Cross-selling additional products into APM-only accounts is another.

In fact, New Relic has already seen success with a three-year, $24 million deal with a Fortune 100 customer, the outcome of a hundred separate transactions over the past six years, and now has 1,500 users using New Relic in 45 countries.

This customer is embracing the cloud with around 1,500 developers, IT ops personnel, and business leaders working together using New Relic to drive the success of their digital business initiative.

There's still scope for further growth and upsell to this customer, with New Relic expecting them to become its first $10 million ARR relationship in the not-too-distant future.

New Relic's cloud-first strategy for the current financial year is focused on achieving business success through new users and user stickiness, and getting more people through the funnel from trial to paid.

New Relic's key technologies and services are designed to help customers succeed with digital initiatives. New Relic is pushing new products and functionality alongside its core APM products, including the analytics tool Insights and the Infrastructure product for monitoring dynamic cloud and hybrid environments.

These offerings provide a unified view across customer experience, application, and infrastructure, making it easier for customers to see the impact of infrastructure health and configuration on the application and customer experience. New Relic's vision is to offer a single, easy-to-use platform that delivers this unified view.

Project Seymour, which uses machine learning to help automate the process of identifying and alerting issues to appropriate users, will be a further differentiator when it enters general availability later this year. Seymour is not a separate product on its own but rather a vehicle by which New Relic drives more user engagement, stickiness, and competitive advantage.

New Relic Insight has already seen significant success, with the company's first $1 million ARR customer closing in Q4. This customer's CEO was publicly committed to the project's success, which helped advance New Relic's proposition and transform their view of the company.