New Relic and Hortonworks, two companies that share a key investor — venture capitalist Peter Fenton — and which both debuted in IPOs on the same day late last year, today both beat the Street estimates in their quarterly results.
New Relic and Hortonworks Rise as Results Beat Estimates
Two companies who share a key investor and IPOed the same day, beat the street handily.
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New Relic shares rose by more than 6 percent after hours after its 22 cents per-share loss was lighter than the 25 cent loss that analysts expected. Revenue at $33.4 million was better than the consensus estimate of $30.3 million. The company finished the year with revenue of $110 million, which was also better than expected. It forecast sales in the range of $155 million to $159 million for the coming year and called for a net loss between 95 cents and $1.03, compared to a consensus view of $147 million and a loss of a dollar a share.
CEO Lew Cirne said in an interview that New Relic’s business of selling cloud software that monitors the performance of Web applications to enterprises has been driving bigger deals than before. New Relic has also launched two new significant products for a total of three in the last year, and 15 percent of the company’s customers are using two or more. “We built the stuff to work together, and that is resonating with the customers,” Cirne said.
Then there’s Hortonworks, the company that sells and services Hadoop, software that large companies use to analyze their data in hopes of finding insights that will save them money. Its shares rose by more than 12 percent after hours as its results and forecast were both better than expected.
Hortonworks reported a per-share loss of 77 cents, which was better than the 86 cents analysts expected. Revenue rose 167 percent to $22.8 million compared to the $18 million consensus. It said it expects revenue in the range of $95 million to $97 million, well above the $85.5 million expected.
Hortonworks President Herb Cunitz said in an interview that Hortonworks customers are paying more over time as they add on more products and services. For every dollar Hortonworks customers spent on its products and services in the year-ago quarter, the same customers spent $1.43 this quarter, he said.
This article originally appeared on Recode.net.
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