Here's Why New Relic Stock Got Crushed Today
Shares of New Relic (NYSE: NEWR) were crushed on Friday after the company released its earnings results for the third quarter of its fiscal 2021. The company beat some analyst estimates, which was good. But it's in the middle of completely changing its revenue model, and it seems some investors aren't keen on the shift. As of 12:30 p.m. EST today, the stock was down 17%.
Third-quarter revenue was $166 million, up 9% year over year. This was slightly more than analysts were expecting. However, that's not an apples-to-apples comparison. Before, the company sold its product on a subscription basis. But the 2021 third quarter was the first full quarter in which users paid based on how much they used New Relic's platform.
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Source Fool.com
